Protection and Savings Insurance Consumer Behaviour in Saudi Arabia

Abstract

Purpose of the study; the main objective of the study was to find out the Protection and Savings insurance consumer behaviour in Saudi Arabia. The study aimed at exploring the reasons that can motivate the people in buying protection and savings insurance.   Methodology: To address the objectives of the study quantitative research strategy was used. The study is descriptive as well as quantitative in nature and is based on primary data collected from 300 users and non-users of insurance. The primary data was collected through a structured close-ended questionnaire developed in English and translated into Arabic language. Findings: The results show that people in Saudi Arabia are not much aware about the benefits of the P&S insurance, they do not have enough knowledge about it and they are not sure that P& S insurance is shariah compliant. The results also show that price do not influence much as well as the behaviour of insurance employees do not influence the demand. At this stage of insurance market development the customer seems to be indifferent to the online services of the insurance company. Besides, the reliance on family risk financial pool is discouraging the purchase of insurance. Other factors such as disposable income, government security system, and feeling of future risk for family influence the demand for P& S insurance. Managerial implications: Insurance market of Saudi Arabia is driven by compulsory lines of insurance namely, health insurance and motor insurance. P&S insurance is not purchased much. The results suggest the managers and policy makers should work on creating and spreading awareness about the risk for family in future, benefits of P&S insurance, insurance as an investment and most importantly that insurance in Saudi Arabia is shariah compliant.

Keywords: Insurance, Muslim consumers, Saudi Arabia, Protection and Savings Insurance, Shariah law