Open AccessThis paper attempts to find out the factors important in developing a suitable marketing strategy for insurance companies in Saudi Arabia. It investigates the reasons for buying insurance by the current users of insurance, reasons for not buying insurance by non-users of insurance and the issues and problems faced by Saudi Insurance industry.
The study is based primarily on primary data collected randomly from 500 users of insurance, from 400 non-users of insurance and 80 insurance executives through structured questionnaire in Jeddah city of Saudi Arabia. The three questionnaires were developed in English and translated into Arabic for effective response due to Saudi Culture, and language. The response from the three groups of respondents were analyzed using simple statistical techniques such as percentages, mean, chi-square tests, factor analysis, and ANOVA analysis with the help of Statistical Package for the Social Sciences (SPSS).
The results of the study show that the social and regulatory factors played crucial role in the consumer’s decision in purchasing insurance. However it was also found that the public at large is unaware about the benefits of insurance, and various types of insurance products. The insurance companies shall focus of promotional marketing strategies. The marketer’s primary focus should be on promotional activities.