Page 57 - GEORptSep22

9.1.7 Property sector news
Real estate prices in Georgia move up
Real estate prices continue to grow in Georgia. The Residential Property Price Index (RPPI) in the second quarter increased by 0.7% q/q, with the annual increase 4.5% y/y, the National Statistics Office of Georgia reported. The RPPI applies to the apartment and detached house segments in Tbilisi.
Also in 1H22, apartment prices were up 2.2% q/q. The prices of detached houses fell by 2.4% q/q. Year on year, the prices were up 8.2% and 3.5%, respectively.
TBC Capital said that the positive trend in issuing mortgage loans continued throughout July. According to its data, new mortgage loans issued through TBC channels and residential real estate transactions in Tbilisi increased. On July 1-14, the increase in the volume of recently issued mortgage loans improved, making up 11% y/y. In the same period, compared to the previous year, the gain in Tbilisi residential real estate transactions amounted to 29%.
9.1.8 Healthcare sector news
Georgian healthcare workers prepare to strike
Georgian insurance market grows by 19% in H1
Several hundred Georgian healthcare workers are planning to strike over poor pay, Georgian media reports.
A total of 390 employees of the Social Service Agency of the Ministry of Health are preparing to go on strike on January 17 if their salaries are not increased by 100%, lawyer of the professional union Solidarity Network Davit Tomsarashvili said on January 14.
Tomsarashvili said salaries of social workers have been GEL200 for about 12 years and have never been increased. They also don’t have health insurance and often have to cover transportation costs themselves.
“These people [social workers] have been demanding decent working conditions and salaries for years, however, the negotiation process with the Social Service Agency has failed. Since the agency doesn’t take their demands seriously, they decided to go on strike”, Tomsarashvili said. Tomsarashvili said both the Social Service Agency and the Ministry of Health have already been informed about the strike.
The Georgian insurance market ended H1 with an expansion of 19% y/y, while gross written premiums (GWPs) reached GEL 448.64mn (€119.29mn), according to data published by the Georgian Insurance Supervision Service.
Life and non-life insurance had almost the same growth rates, also at 19%, while the market remained non-life oriented - non-life insurance occupies over 93% of the portfolio.
Of the largest market segments, the most impressive growth was recorded by Motor Hull, with GWP increased to GEL 74.49mn, while property insurance also grew by more than 25%, as well as accident insurance and health insurance.
Insurers' paid claims expanded by almost 26% to GEL 194.19mn. In terms of segments, the largest amount of paid claims fell on health insurance - almost GEL 105mn.
Out of 18 companies operating in the Georgian insurance market, GPI Holding continued to lead (GEL 86.11mn of GWP), Aldagi ranked second, while Imedi L and TBC Insurance swapped places, with Imedi L falling to fourth and TBC Insurance moving up to third.
57 GEORGIA Country Report September 2022 www.intellinews.com