AN EMPIRICALANALYSIS OF THE PROBLEMS AND CHALLENGES CONFRONTING INSURANCE COMPANIES IN SAUDI ARABIA EXECUTIVES PERSPECTIVE

           Author           Dr. Abdalelah S Saaty

             Title                      An Empirical Analysis of the problems and challenges confronting 
                                          insurance companies in Saudi Arabia Executives perspective

             Journal                  African Journal of Business Management

             ISSN No.             1993-8233

             Year                     2012

             Country                Nigeria

             Impact Factor     1.05

Abstract

This study attempts to find out the problems and challenges confronting the insurance industry of Saudi Arabia from employees’ perspective. The study aims at highlighting the areas which need special attention of the insurance companies in particular and policy makers in general. The study is based on primary data collected from 80 insurance professionals currently working in various insurance companies of Saudi Arabia. To get diversified information, the insurance professionals have been categorized into the following three sub groups with special focus on marketing professionals such as insurance salesman, marketing executives, and other executives. A questionnaire originally developed into English and translated into Arabic in consideration of cultural factor was randomly administered to the insurance professionals. The collected data was analyzed on SPSS software for meaningful results. The findings of the study show that the industry is lacking qualified and experienced insurance professionals. There is huge requirement of specialized education and training in insurance area. The industry is highly dynamic and is going through high competition among the insurance companies. The findings further suggest that the people buy mainly compulsory insurance policies namely; motor insurance and health insurance, and the executives are facing the problem of low achievement against high targets. The industry as a whole is dominated by few large insurance companies, thus intensifying the competition among the others over the compulsory lines of insurance business. The code of conduct for the industry is good and supportive. Finally, the results show that there is positive change in the behaviour of the customers; they are becoming receptive towards insurance. Thus, from the findings, it can safely be suggested that the policymakers and those responsible for developing insurance industry in Saudi Arabia should find out ways of providing more educated and qualified professionals to the industry and promote professionalism in insurance industry. The policy makers should promote healthy competition among insurance companies and try to control the dominance in market by few insurance companies.

            Key words: Insurance, Saudi Arabia, motor insurance, health insurance, insurance executives.