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Eliciting Customers’ Preferences in the Cooperative Insurance Industry: Evidence from the Saudi Motor Insurance Market

Author

Listed:
  • Tarifa Almulhim
  • Mohammed Al-Mahish
  • Mohammed Alabdulqader

Abstract

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. 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

Suggested Citation

  • Tarifa Almulhim & Mohammed Al-Mahish & Mohammed Alabdulqader, 2024. "Eliciting Customers’ Preferences in the Cooperative Insurance Industry: Evidence from the Saudi Motor Insurance Market," SAGE Open, , vol. 14(3), pages 21582440241, July.
    • Handle: RePEc:sae:sagope:v:14:y:2024:i:3:p:21582440241266003
    DOI: 10.1177/21582440241266003
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    More about this item

    Keywords

    discrete choice experiment; choice-based conjoint analysis; cooperative motor insurance; Saudi Arabia;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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