The insurance sector in Afghanistan, like many other sectors in the country, is gasping for much-needed reforms.
Although there are insurance services available in the country, absence of proper government policy, high insurance premiums, lack of awareness among people and mistrust of the insurance companies have left this sector underdeveloped.
The Afghan Chamber of Commerce and Industry identifies areas of health, motor, cargo and mining as high potential areas for insurance companies but in a country marred by decades of conflict, rife graft, poor economy, and sectarian divide, the highest-risk factor is terrorism.
The government has withheld for years the draft legislation on insurance despite running a national insurance firm of its own that mainly deals with covering car accidents and arson.
Lack of awareness, mistrust, political instability among other factors, have prompted many companies registered in Afghanistan to buy insurance directly from outside the country, which is a distraction for the Afghan economy and is contrary to the law, he said.
Still, recently, there has been good news for Sky International Insurance as most NGOs have expressed interest in health insurance for their employees.