Sustainable Insurance in Saudi Arabia
Research Topic.
1. The Takaful insurance in Saudi Arabia. (cooperative)
Research questions
How does the Takaful insurance operate?
Why most Saudi Arabian citizens do not Trust convectional insurance providers?
Benefits of using Takaful insurance
2. Developments of sustainable goals of insurance in Saudi Arabia.
Research questions
What are the pillars of sustainable insurance development?
Examples of sustainable development goals in Saudi Arabia insurance industry?
Goals of sustainable insurance?
3. Challenges facing insurance companies in Saudi Arabia.
Research questions
What are the most common forms on insurance is Saudi Arabia?
How insurance companies assist in managing cash flow in Saudi Arabia?
Solutions to insurance problems in Saudi Arabia?
DATA Collective: (secondary research)
ARAMCO Saudi Arabian Oil Company (website)
Sabic- Chemical manufacturing company. Riyadh (website)
ALTAWNIYA, ALRAJHI, Bupa. (insurance companies) – Visited
Cause of Trust Among Insurance Companies in Saud Arabia
One of the major topics in the sustainability of the insurance industry in Saudi Arabia is the lack of trust in insurance companies. Due to a lack of trust in most insurance providers, most people do not have the correct insurance. Most companies fail to pay claims fully or offer poor benefits to consumers (Tranter & Booth, 2019, 200). Most citizens of Saudi Arabia have low trust in insurance companies as they have unclear policies on what consumers are purchasing. There are poor communication channels on products and services offered by insurance companies. Even customers using digital channels rarely get accurate and enough information on various policies in the insurance industry.
Another reason for distrust in the insurance industry is obscure pricing. Packages offered by some insurance companies do not seem reasonable. Additionally, most insurance companies in Saudi Arabia have been accused of violating the privacy of clients’ information and data. Indeed, the breach in personal information negatively impacts their perception of the customers.
Lack of trust in the Saudi Arabia insurance industry has made many citizens opt not to use different insurance services. Most companies are experiencing losses as more customers do not consider insurance a viable option. Another reason for distrust in insurance companies is offering impersonal products. Most insurance companies have little or no understanding of their consumer needs (Guiso, 2012, 5). This is the reason why most insurance firms offer irrelevant products and services. In most insurance packages, the coverage is too broad; hence consumers have a hard time understanding insurance companies. Insurance companies are important as they offer financial support in different situations. Having good insurance can be the determinant between life and death. Insurance companies in Saudi Arabia must come up with means of increasing trust among their consumers.
References
Tranter, B. and Booth, K., 2019. Geographies of trust: Socio-spatial variegations of trust in insurance. Geoforum, 107, pp.199-206.
Guiso, L., 2012. Trust and Insurance Markets 1. Economic Notes, 41(1‐2), pp.1-26.
References
Maysami, R.C. and Kwon, W.J., 1999. An Analysis of Islamic Takaful Insurance. Journal of Insurance Regulation, 18(1).
Kader, H.A., Adams, M. and Hardwick, P., 2010. The cost efficiency of takaful insurance companies. The Geneva Papers on Risk and Insurance-Issues and Practice, 35(1), pp.161-181.
https://www.aramco.com/en/creating-value/sustainable-business-operations
Additional Resources
Smith, V.H. and Watts, M., 2019. Index based agricultural insurance in developing countries: Feasibility, scalability and sustainability. Gates Open Res, 3(65), p.65.
Gharizadeh Beiragh, R., Alizadeh, R., Shafiei Kaleibari, S., Cavallaro, F., Zolfani, S.H., Bausys, R. and Mardani, A., 2020. An integrated multi-criteria decision making model for sustainability performance assessment for insurance companies. Sustainability, 12(3), p.789.
Sweis, R.J., Elian, M., Alawneh, A.R. and Sweis, N.J., 2018. The impact of service quality on sustainable competitive advantage: study on Jordanian health insurance companies. International Journal of Business Excellence, 16(2), pp.162-176.
Scordis, N.A., Suzawa, Y., Zwick, A. and Ruckner, L., 2014. Principles for sustainable insurance: risk management and value. Risk Management and Insurance Review, 17(2), pp.265-276.
Farhan, M. and Alam, H.M., 2018. Operational Risk Management in Islamic Banking; a System Thinking Approach. Journal of Islamic Business and Management, 8(2).
