ENBIS-18 in Nancy
2 – 25 September 2018; Ecoles des Mines, Nancy (France)
Abstract submission: 20 December 2017 – 4 June 2018
Tracking Changes on Insurance Industry of Saudi Arabia along the Past Decade. Is it Expanding?
3 September 2018, 14:00 – 14:20
- Submitted by
- IGOR BARAHONA
- Igor Barahona (Autonomous University of Mexico. Institute of Mathematics), Tarifa Almulhim (School of Business, King Faisal University)
- Insurance industry has shown a remarkable growth during the last two decades. There is relatively little attention on studies that present detailed description of the form this industry has expanded during the last years in developing countries. Considering most of the studies available on literature investigate variations on insurance industry in an aggregated way, our approach is focused on providing a more detailed description of this growth. Namely, here we investigate six different indicators, which were measured for nine market niches along the last twelve years. Multivariate statistical methods, such as Principal Components Analysis, Correspondence Analysis and Correlations Matrices allow us to disclose (in a more precisely form) how insurance industry in Saudi Arabia, (an oil-rich country), evolved during the mentioned period. Subsequently, Keras, which is a framework to accurately define and train deep-learning models is applied on estimating industry's values for coming years. Descriptive and forecasting analysis are both performed, with the annual data from the Saudi Arabian Monetary Authority (SAMA) for the period 2005-2016.
Our preliminary results show an important difference on Retention ratio in contrast with the rest of indicators. On the other hand, penetration and density are indicators that show strong correlation.
Finally, we propose this work might be helpful for decision makers, government, customers and persons related with the insurance industry in Saudi Arabia. Taking into account that the acquisition of accurate data in the country is a complex task nowadays, this work intents to make a significant contribution on that direction.
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