Interview with the Executive Director of TBC Bank Paata Ghadzadze
Monday, November 21
Interview for The Messenger with TBC Bank Executive Director Mr. Paata Ghadzadze by Salome Lomitashvili
Q.: What would TBC Bank and the recently-purchased Insurance Company jointly offer to customers?
A.: In October, we officially declared that TBC Bank purchased 100% of Insurance Company Kopenbur, which is mainly involved in automobile insurance business. Just before the end of the year, we would enlarge the capital for increasing the insurance segment of other types. The priority will be health insurance and life insurance as well as insurance of the property. The new company will mainly be oriented on retail segments of small and medium size businesses as well as corporate insurance. This will be conducted through TBC Bank network. The company’s capital will be fixed at 12.000.000 GEL.
Q.: What will be the difference between your company and other insurance companies?
A.: Our company is not going to enter the medical insurance sphere. However, we will insure accidents and health connected to medical emergencies. We will not carry out life insurance, which needs special infrastructure. This will come in the future.
The major difference will be the efficiency of insurance services, including issuing policies and the compensation. This envisages the investments in new technologies. For example, this will include so-called “artificial intellect”, which will be able to act as fast as possible without human interference. This will enable issuing and evaluating policies nominating approximate prices and limits. This will take place through special applications in automatic mode, so the payment for the minor amounts will be concluded in the shortest possible period.
The second hallmark will be the bank’s network services, which will be taking place in TBC Bank network outlets automatically. The service will include offers and services as well. This means that the TBC Bank and Bank Republic networkswill serve our customers. Apart from bank networks’ services, we will introduce online insurance, which could be attached to credit loans. This will be individual and would widely include online insurance, through the appropriate infrastructure. We envisage solid investments in technologies in the direction of personal training. These moves are targeted not on increasing the staff, but for creating sufficient mobile groups with appropriate qualification and this will enable to serve the customers practically in automatic mode. This kind of novelties are already tested in western countries and we want not only to imitate and follow the leadingwestern insurance companies, but in the most cases to outrun them through introducing technological formats, which are not done by big insurance companies with fast pace. We must implement technological know-hows in the maximally shortest period of time.
Q.: How many customers do you plan to insure?
A.: All products will be insured and compensated completely with maximum limits. However these limits will have certain novelties in particular life insurance.
Q.: The insurance culture in Georgia is pretty low. The population does not go for the insurance. What is the reason of this reality and what are the prospects of improving the situation?
A.: The insurance culture is connected with the awareness of the population. However the person does not fill the necessity of such steps until something happens to him/her. In the west and developed countries it is pure budgetary issue, which is understood as a consumers’ budget. The expenses protect the people from unexpected accidents and financial loss.
In Georgia, this topic was connected to the obligatory insurance platform. Today it is different. The insurance is sold through the banking network, however there are cases where the companies, such as travel agencies, are involved as well. Today, the insurance products are more widely sold than say 10 years ago. I speak about non-medical insurance, because there is a big demand on medical insurance. But this system needs to be improved in regards of medical services. Today, non-medical insurance penetration comes to less than 1% of GDP, we think that in 4-5 years this penetration will increase up to 1.5-2%, which is still less than penetration of the develop countries. During the last 10 years the penetration increased and we plan that it further increases for the next 5 years. We are optimistic.
We expect an increase in health insurance, which is kind of an alternative for bank deposits. The person has savings which is the source of person’s incomes through interest rates. Today, the deposits are so small that people try to invest their small savings into new products. The offer was not compatible, because of the high interest rate in deposits. Today, the people might think investing not only in bank deposits, but diversify investments including health insurance savings, which is profitable and is securing from unpleasant surprises. This issue is connected with private pensioners insurance which is a very interesting topic for the future, but TBC bank already thinks for these prospects.
Q.: Would the new insurance company create extra jobs?
A.: In the existing insurance companies, we employ about 80 people, we plan to increase this number up to 120 persons, half in the main office, the rest in the branches.
After the rebranding, we’ll have some more news with the new brand name.
Q: Thank you for your interesting answers, we wish you good luck.
Would you like to send a message for the Messenger readers?
A: We wish you success and increase of readership as it is very useful to have such a media outlet in the country.
