The Evolution of Vehicle Insurance and The Factors Affecting It in the Kingdom of Saudi Arabia: An Analytical Study

Abstract

Objectives: 
This study aimed to analyze the factors influencing the development of motor vehicle insurance in the Kingdom of Saudi Arabia. It reviewed the evolution of this type of insurance, its significance in Saudi society, and its role in supporting the economy and social development. The study also examined the impact of the industrial revolution and global economic growth on the increasing number of vehicles and the growing demand for insurance services, highlighting the sector’s importance in enhancing road safety and improving the quality of insurance services. 

Methodology: 
A descriptive-analytical approach was employed due to its suitability for the study’s objectives. The study population comprised employees of insurance companies in Saudi Arabia. A simple random sample of 107 participants was selected, and data were collected through an electronically distributed questionnaire. 

Results: 
Descriptive statistical analysis indicated that participants had a positive perception of the importance of developing motor vehicle insurance and its role in promoting road safety and improving insurance services. However, inferential statistical analysis showed no significant effect of economic, technical, or social factors on the development of motor vehicle insurance in terms of increasing financial returns, enhancing competitiveness, or expanding the scope of insurance services. 

Conclusion: 
The study recommends raising insurance awareness through targeted media and educational campaigns for vehicle owners and potential consumers. Additionally, it emphasizes the need to improve regulations and policies governing motor vehicle insurance in the Kingdom of Saudi Arabia to support sectoral growth and service quality enhancement.