Smartphone based usage based insurance implementation feasibility in Saudi Arabia insurance market: A mixed methods assessment of technological readiness and stakeholder perceptions

This study evaluates the feasibility of implementing smartphone-based Usage-Based Insurance (UBI) in Saudi Arabia's insurance market through sequential explanatory mixed-methods research combining surveys and expert interviews. Data was collected from 503 public respondents via structured survey (35 Likert-scale items across 8 constructs), 93 industry specialists via expert survey (40 items across 8 constructs), and 15 senior professionals via semi-structured interviews. Public survey results revealed that 93% of respondents possess automobile insurance, with moderate-to-positive UBI perceptions across constructs (means 3.54-4.02 on 5-point scales). Statistical analysis demonstrated significant negative association between privacy concerns and behavioral intention (χ 2 (4)=23.67, p<0.001; r=-0.584, p<0.001), indicating privacy protection as critical implementation prerequisite. Younger respondents (18-35 years) exhibited significantly higher acceptance than older cohorts (F(4,498)=8.47, p<0.001). Expert survey factor analysis identified three implementation readiness dimensions: Technological Infrastructure and Market Capability (27.5% variance), Regulatory Framework and Policy Support (22.4% variance), and Market Acceptance and Strategic Outlook (17.6% variance). Expert interviews through thematic analysis revealed primary implementation barriers: regulatory constraints (68.4% prevalence), IT security deficits (61.3%), and limited public awareness (58.1%). Readiness component assessment identified cybersecurity infrastructure as lowest-rated dimension (M=2.97, SD=1.03) requiring priority intervention. The study contributes first comprehensive empirical assessment of smartphone-based UBI feasibility in Gulf contexts, providing actionable insights for stakeholders while advancing theoretical understanding of technology adoption in culturally distinct emerging insurance markets. • Smartphone-based telematics systems show high feasibility in emerging markets (97.5% penetration) • Privacy concerns significantly predict resistance to mobile monitoring systems (χ 2 =23.67, p<0.001) • Cybersecurity infrastructure represents lowest readiness component among experts (M=2.97) • Mixed-methods analysis reveals regulatory gaps as dominant barrier to telematics deployment • Implementation readiness varies across technological, regulatory, and market acceptance dimensions