Proposed Model for Micro-Insurance Risk Management Applied to the cooperative insurance sector in the Kingdom of Saudi Arabia

Abstract

Micro insurance represents one of the most important tools that provide insurance protection for a large segment of society members with low incomes against the risks they are exposed to, in return for paying low premiums commensurate with the nature of the insured risk and also with their low incomes, which requires cooperative insurance companies to provide an integrated package One of the insurance products that meet the needs of this segment of society, and given the importance of that insurance product as a tool for developing the demand for insurance sector products, in addition to providing insurance protection for an important segment of society, namely, low and middle-income people, the research team, through this research, dealt with The nature of micro-insurance by presenting its concept, characteristics and dimensions, as well as the importance of this type of insurance on the different parties to the insurance process, and the insurance coverages it provides. The insurance market in the Kingdom of Saudi Arabia, and the research reached many results, perhaps the most important of which is that the Kingdom of Saudi Arabia is represented by An appropriate environment for this type of insurance for many reasons, perhaps the most important of which is the increase in the number of small individual projects, but this experiment (micro takaful) faces a set of challenges that include the lack of reinsurance as a result of the dangerous nature of financial bonds, in addition to the lack of insurance expertise that enables To provide a different set of insurance products on a sound economic basis, and there are a set of organizational difficulties facing insurance companies that adopt this type of products, which prompted the research team to present a proposed model for effective strategies that work to reduce these obstacles, which can be Cooperative insurance companies are guided by the design and delivery of micro-insurance products.