Opportunities, Challenges and Means of Development of Cooperative Insurance Market in the Kingdom of Saudi Arabia in the Post Era of Joining World Trade Organization

Abstract

The study aims at analyzing characteristics, opportunities, challenges and means of development of the Saudi cooperative Insurance Market. The Insurance Sector is characterized with a limited size of companies, activities and capital, which is supervised by the Saudi Arab Monetary Agency. On the other hand, the sector has witnessed opportunities for high annual growth, diversified activates, attracting more clients and investment. Challenges include lack of organizational and marketing capabilities, lack of specialized units for risk management, inadequate legislations, lack of public awareness, lack of training. spread of fraud, rising cost and lack of transparency. The suggested means of insurance development include the need for staff training, merging companies, raising capital, establishing national re-insurance companies, resisting fraud, entering into alliances with foreign companies and applying of corporate governance.