Challenges and Opportunities Ahead of Insurance Industry in Afghanistan
Afghan entrepreneur and chairman of SMN Investments, Sadat Mansoor Naderi shares the challenges and potential of insurance industry in Afghanistan.
Sadat Mansoor Naderi is the first Afghan entrepreneur to win the Peace through Commerce Award from United States Department of Commerce in 2012.
Naderi single-handedly created the first private insurance company in Afghanistan in late 2007 despite the war-torn country is still facing many challenges and barriers in various sectors and specifically in insurance sector.
“The reason I invested in insurance business is because there was no other insurance company in Afghanistan. There is no doubt Afghanistan deserves to have all the sectors that any other country around the world has so insurance is a must sector. No company or country can survive without insurance sector,” Naderi said.
Naderi said he is optimistic about the future of insurance market in Afghanistan and said there are a lot potential for growth while hinting towards the small percentage of the market captured by the insurance company founded by him.
He said there are huge potentials in the areas of life, health, motor, cargo and mining in Afghanistan.
In the meantime, Naderi said the lack of understanding and capacity within the Afghan government is one of the main challenges the insurance industry is facing in Afghanistan.
“Of course the commissioner is doing their best but due to lack of insurance business in Afghanistan there is a huge lack of understanding, capacity within the government,” Naderi said.
He also added that the commissioner needs to protect the existing insurance company; the commissioner should strictly regulate the market from illegal insurance companies selling insurance in Afghanistan.