Macroeconomic Factors and Insurance Growth in Saudi Arabia
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Date
2024-09-10
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Saudi Digital Library
Abstract
This dissertation examines the impact of key macroeconomic factors on the growth of the
insurance sector in Saudi Arabia between 2016 and 2024. The analysis employs an Ordinary
Least Squares (OLS) regression model to explore the relationships between the Insurance
Index and variables such as Gross Domestic Product (GDP), Tadawul All Share Index (TASI), oil
prices, Saudi Arabian Interbank Offered Rate (SAIBOR), inflation rate, unemployment rate, and
net earned premiums. The findings reveal a significant negative relationship between GDP and
insurance sector growth, which contrasts with expectations established by existing literature.
The study also identifies a positive and significant correlation between TASI and the
performance of the insurance sector. However, oil prices, interest rates, unemployment rates,
and net earned premiums showed less direct impact. The results highlight the complex
interplay between macroeconomic variables and the insurance sector, providing valuable
insights for policymakers, investors, and industry stakeholders in Saudi Arabia.
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Keywords
Insurance microeconomics Saudi