DOI kodi: 10.52340/ekonomisti.2026.02.23

Expanded Summary

The paper is devoted to the study of the role and significance of the international reinsurance market in the development of the Georgian insurance sector. The research is based on a comprehensive analysis of reinsurance as a financial and institutional mechanism that ensures the stable functioning of insurance companies and the efficient redistribution of risk. The article examines the function of reinsurance in ensuring financial stability, effectively managing high and catastrophic risks, and maintaining the solvency of insurance companies, which is particularly important in the context of developing markets such as Georgia.

In addition, attention is focused on the impact of international reinsurance on enhancing the competitiveness of the Georgian insurance market and its convergence with modern international standards. It is emphasized that cooperation with global reinsurance companies contributes to the introduction of advanced risk assessment and pricing methodologies, as well as the improvement of corporate governance and regulatory frameworks. This process, in turn, increases market transparency and strengthens customer confidence in the insurance sector.

International reinsurance represents a key foundation for the stability of the country’s insurance system and its economic security, as it reduces systemic risk, enhances financial resilience, and creates additional opportunities for the long-term development of the insurance market.

The findings of the study demonstrate that international reinsurance constitutes one of the fundamental determinants of stability, resilience, and sustainable development within the Georgian insurance sector. In the context of comparatively limited capitalization of domestic insurance undertakings, the reinsurance mechanism performs a critical function in the management of high-severity and catastrophic risks, the safeguarding of financial obligations, and the mitigation of systemic risk exposure.

Furthermore, international reinsurance substantially contributes to the enhancement of the insurance market’s competitiveness, the introduction and dissemination of advanced risk assessment methodologies, and the convergence of the sector with internationally recognized insurance standards. Accordingly, public trust in the insurance sector is shaped not solely by the financial robustness of domestic insurers, but also by the credibility, financial strength, and credit ratings of their international reinsurance partners.

Consequently, international reinsurance should be regarded not merely as a technical financial arrangement, but as a systemically significant mechanism that underpins the sustainable development of Georgia’s insurance market and reinforces broader economic security and financial stability.