Developing strategies to increase public trust in the insurance market in Iran and Saudi Arabia

Objective: This research aims to identify the factors affecting the growth of the insurance industry and increasing public trust in Saudi Arabia, and to compare the status of this industry in Saudi Arabia and Iran.Methodology: This paper adopts a comparative approach to examine the insurance industry in Iran and Saudi Arabia, focusing on the advancements and public trust within these sectors. Employing an inductive research design, the study moves from data collection to theory development, thereby uncovering novel insights into under-researched areas.Findings: Successful mechanisms in the insurance industry of many countries have led to increased public trust. Data analysis reveals that in 2013, Saudi Arabia, with a gross written premium of $6.731 million and ranking 45th, was the closest country in the region to Iran, with a gross written premium of $6.456 million and ranking 47th. However, after a decade, Saudi Arabia's gross written premium surged to $14.228 million, and it ranked 35th. In contrast, Iran's gross written premium in 2023 was $5.943 million, and its rank was 45th. The research findings indicate that the factors contributing to the rapid growth of the insurance industry in Saudi Arabia include a strong and coordinated regulatory framework, government support for the insurance industry, development of innovative products, accurate risk assessment using advanced mathematical models, prompt and efficient claims settlement, increased public awareness, and healthy competition. Conversely, the Iranian insurance industry faces challenges due to the absence of these factors, ultimately leading to the underdevelopment of the insurance sector in Iran compared to Saudi Arabia.Conclusion: The Iranian insurance industry needs concerted efforts from the government, industry, and regulators to revitalize its growth.

Developing strategies to increase public trust in the insurance market in Iran and Saudi Arabia Keywords:

Insurance , Iran , Saudi Arabia , comparative study , development