journal N3 2025

DOI: 10.52340/ekonomisti.2025.03.06

Expanded Summary

The insurance sector in Georgia represents a vital and growing component of the national economy, yet it continues to face significant structural and managerial challenges, particularly in the domain of sales management. This study aims to explore the systemic issues hindering the development of effective sales strategies in Georgian insurance companies, focusing on organizational constraints, technological gaps, limited digital transformation, and the insufficient integration of customer-oriented approaches.

Sales management is not merely the process of offering a product or service; it constitutes a complex, multidimensional system grounded in managerial structures, technological infrastructure, and human resource capacity. Theoretical literature confirms that the structure and processes of sales management are closely linked to an organization’s overarching strategy and customer-focused philosophy, which are essential for maintaining adaptability in competitive markets (Johnston & Marshall, 2020). In Georgia, however, the insurance sector has not yet developed a fully systemic or integrated model of sales management.

Key challenges include ineffective organizational models, underqualified personnel, and the lack of advanced digital tools. Sales strategies are often transactional rather than relational, focusing on one-time conversions instead of fostering long-term customer engagement. Companies rarely invest in data analytics, structured training, or CRM integration. As a result, the sector continues to underperform in terms of customer loyalty, retention, and sustainable growth.

Client acquisition and retention, already crucial for any service-oriented industry, take on exceptional strategic importance in the insurance sector. Unlike tangible products, insurance does not offer immediate material benefit and requires financial, emotional, and intellectual commitment from the customer. This makes client acquisition and retention significantly more complex, demanding well-designed, customer-centric strategies from management.

One of the most critical issues in Georgia is low public awareness and understanding of insurance as a social or economic safety mechanism. Insurance products are often purchased only when mandated by law, leading to a customer base that lacks intrinsic motivation or trust. As a result, the majority of companies focus predominantly on attracting new clients, while retaining and growing the value of existing ones remains a secondary concern. This approach is not only inefficient over time but also economically unsound, as retaining existing clients is significantly more cost-effective than acquiring new ones.

Moreover, standardized sales strategies dominate the market, offering generic insurance packages that do not align with individual client profiles, needs, or financial capabilities. This misalignment leads to poor customer experiences and undermines efforts to establish long-term relationships. The absence of digital communication channels exacerbates the issue, as modern consumers expect convenience, speed, and access to services through online platforms—features often lacking in Georgian insurance firms.

Another critical gap is the lack of effective feedback mechanisms. Customers have limited avenues to express dissatisfaction, and companies struggle to respond adequately, which weakens emotional connection and increases client attrition. Insurance agents, key players in client acquisition, are rarely engaged in retention strategies. Inconsistent communication and the absence of standardized protocols hinder the delivery of reliable, trustworthy service.

Sales approaches also tend to apply a “one-size-fits-all” logic, failing to account for the demographic, geographic, and behavioral diversity of the customer base. Such homogeneity in strategy diminishes personalization, which in turn erodes trust and customer interest.

Currently, Georgia’s insurance sector lacks structured, long-term client acquisition and retention strategies at both the managerial and operational levels. The market is largely driven by short-term sales objectives rather than sustainable relationship building. Improvement in this area will require:

• The development of customer-centered sales strategies;
• Strengthening of digital channels for service delivery and communication;
• Implementation of systematic feedback mechanisms;
• Introduction of loyalty programs to incentivize long-term engagement.

These reforms, taken as a comprehensive approach, have the potential to rebuild consumer trust, expand market reach, and ensure the long-term success of sales management within Georgia’s insurance sector.

Drawing on a descriptive-analytical framework and critical literature review, the research also incorporates international comparisons with Estonia, Poland, and Turkey—countries that have successfully modernized their insurance markets through digital transformation, targeted training systems, and personalized sales approaches. Their experiences reinforce the need for strategic, structural, and technological reform in the Georgian context. 

Keywords: Sales management, insurance sector, Georgia, CRM, customer-centered approach, strategic planning, human resources, digital transformation, international comparison.