Charting Changes in Saudi Arabian Insurance Industry

Abstract

In the recent years Saudi Arabia has experienced rapid economic growth. The significant increase in crude oil prices in the seventies and early eighties enabled the Kingdom to experience a continuous upward trend in its oil revenue which has been utilized to build the country infrastructure and improve public services, especially in education and manpower development, health, and social services. The insurance industry also experienced recent growth, however, it was unable to develop at the same manner, in terms of product, quality of insurance, and efficiency in operation. The main contribution of the paper was to understand the trend in the Saudi Arabian insurance industry and to look ahead and suggest what is needed to maintatin the current momentum for an optimal expansion. We believe the lack of institutions to handle the regulatory constructs, operational details and the awareness of the public will be biggest obstacles to the growth. In our paper, we charted some of the details of these institutions juxtaposing against the Gulf Cooperating Countreis on the one hand and the United States on the other.