The Impact of Insurance Market Regulation on Companies' Financial Growth Prospects: The Case of Georgia

This paper examines the impact of regulations on the financial performance of Georgian insurance companies. The research period covers 2016-2024. The research employs deductive reasoning and multiple linear regression using a constructed Regulatory Stringency Index (RSI) and secondary data. The findings indicate that Georgia's insurance market experienced rapid growth alongside a substantial strengthening of capital adequacy and solvency measures following regulatory reforms, confirming that enhanced oversight has bolstered financial stability. However, the results also reveal a trade-off: stricter regulations are associated with lower return on equity and profit margins, suggesting that compliance costs and higher capital buffers modestly constrain profitability.