EPI Report: Insurance and Pension Assessment

This report present and discuss issues relating to (a) development of agricultural insurance and (b) pension fund assets, in relation to their ability to facilitate access to credit and financing by SMEs and individual entrepreneurs.

A quick market assessment and understand of the agricultural insurance and pension landscapes is Georgia was mainly performed and obtained by gathering of and analyzing information elicited from interviews with insurance company officials, officials of most concerned ministries of the Government of Georgia, some members of the Business Association of Georgia and the director of the Georgian Insurance Association. Information was supplemented by reading materials made available by the EPI project office in respect of recent studies, research and surveys relating to agricultural insurance and agri credit.

In relation to agricultural insurance vis-à-vis agri credit/finance a common barrier to their development expressed by stakeholders is the lack of positive and forward looking governmental support to agriculture. Certain of these barriers and how to address and overcome them are presented and discussed in the body of this report.

In respect of pension fund, the asset accumulation in exiting voluntary pension is so small. There would be a need to look a compulsory pension mechanism that will promote and increase national savings. Some issues and moving forward recommendations are spelled in the main body of this report.