Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Major Factors Influencing Insurance Companies In The Middle East

Author(s): Mohammad Al-Dwiry, Thair Al Shaher, Rami Mohammad Al-dweeri, Alaa Al-Horani

The main purpose of this research is to evaluate the major factors that affect the insurance industry in the Middle East countries through applying the principal component analysis method (PCA). The researchers studied and analyzed 19 variables that have an impact on the insurance industry in the Middle East. These variables were summarized into eight major factors based on their importance, among them the inter-developed insurance culture, and the industry’s dependence on traditional insurance products. These variables were categorized according to their significance, and in light of the nature of the implication of every factor. The study revealed that the first factor “Inter developed insurance culture” was the most significant factor, followed by the second factor “Industry’s dependence on traditional insurance products”, and then comes the eighth factor “The weakness and strength of the appropriate legislation and regulatory systems that are applied in the Arab countries in terms of legislation, supervision and regulation of the industry”.