New Social Science Findings from King Faisal University Described (Eliciting Customers’ Preferences In the Cooperative Insurance Industry: Evidence From the Saudi Motor Insurance Market): Science – Social Science

Insurance Daily News

2024 AUG 27 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators discuss new findings in Science - Social Science. According to news reporting originating from Al Hasa, Saudi Arabia, by NewsRx correspondents, research stated, “This research aimed to provide a better understanding and analysis of consumer patterns relative to behavioral preferences in the Saudi cooperative motor insurance market. This aim was motivated by the fact that customers’ preferences have been underexplored in this market.”

Financial support for this research came from Saudi Central Bank.

Our news editors obtained a quote from the research from King Faisal University, “Thus, this paper applied a multi-attributes decision analysis methodology to analyze the decision process of purchasing or retaining cooperative motor insurance based on a discrete choice experiment and a choice-based conjoint analysis. The methodology was conducted via a designed questionnaire that asked 385 customers in the Eastern Region to choose between a finite set of decision purchase options that varied along three key attributes: type of coverage, availability of discount, and insurance premium. Sample results showed that the most important attributes were the insurance premium, followed by the type of coverage. The availability of a discount was the least important attribute; however, compared with men, women placed a higher importance on coverage and discounts. The findings can be valuable to policymakers and managers of insurance companies in designing new characteristics for cooperative motor insurance products in Saudi Arabia in line with Saudi Arabia’s Vision 2030.JEL Classification: C9, D7, C13, G22 Analyzing customer preferences in Saudi Arabia’s cooperative insurance sectorThis study aimed to enhance comprehension of consumer decision-making processes concerning cooperative motor insurance within the Saudi Arabian context, an area that has received limited investigation heretofore. Employing a multi-attribute decision analysis methodology, the research scrutinized the preferences influencing the purchase or retention of cooperative motor insurance, leveraging discrete choice experimentation and choice-based conjoint analysis. Through a structured questionnaire administered to 385 respondents in the Eastern Region, participants were tasked with selecting among predefined insurance options delineated by three pivotal attributes: coverage type, availability of discounts, and insurance premium. Results indicated that the foremost determinant of choice was the insurance premium, trailed by coverage type, while discount availability held lesser significance. Notably, gender discrepancies emerged, with female respondents attributing greater importance to both coverage and discount availability compared to their male counterparts.”

According to the news editors, the research concluded: “These findings hold considerable implications for policymakers and insurance industry stakeholders, furnishing insights conducive to the development of tailored cooperative motor insurance products aligning with the objectives outlined in Saudi Arabia’s Vision 2030 agenda.”

For more information on this research see: Eliciting Customers’ Preferences In the Cooperative Insurance Industry: Evidence From the Saudi Motor Insurance Market. SAGE Open, 2024;14(3). SAGE Open can be contacted at: Sage Publications Inc, 2455 Teller Rd, Thousand Oaks, CA 91320, USA. (Sage Publications - http://www.sagepub.com/; SAGE Open - sgo.sagepub.com)

The news editors report that additional information may be obtained by contacting Mohammed Al-Mahish, King Faisal University, Al Hasa, Saudi Arabia. Additional authors for this research include Tarifa Almulhim and Mohammed Alabdulqader.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1177/21582440241266003. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.