Summary 

Insurance companies’ invests is not directly related to insurance, because at this time they invest temporary free assets which are insurance reserves. While investing in financial assets insurance companies should provide both, their financial stability and the closely match between cash flows of these financial assets and liabilities. In Georgia insurance companies prefer to invest in deposits and cash, where 75% of total investment revenue is generated. In developed countries the majority of insurance companies prefer investing in bonds. If we take into account on of the investment rules- diversification, it would be better and efficient if Georgian insurance companies invest some of their insurance reserves in bonds, because our legislation allows them to make invest in OECD countries’ federal and municipal bonds, no more than 50% of total insurance reserves.