1. Page1SUMMER INTERNSHIP PROGRAMOMEGA INSURANCE BROKERS L.L.C,DUBAI- U.A.ESIP REPORT:1. Company & Industry Analysis Report2. Task Assigned
2. Page2OMEGA INSURANCE BROKERS L.L.COmega Insurance Brokers LLC was established in the year 2003 with a singlemission of providing matchless insurance services to the insuring Public at the mostcompetitive cost. Omega insurance Brokers LLC is the brain child of Mr. S. C. Mittal, thefounder Managing Director of the company. He is a Fellow of The Insurance Institute of Indiaand an Associate of Chartered Insurance Institute (London).The company has grown from strength to strength since its inception. During thisshort span of 10 years, the Premium income of the company has grown 27 fold. Thecompany started with two employees and now its a team of 100 plus professionally trainedindividuals who are ever ready to serve our customers. Since manpower is the main asset ofthe company, they send their staff to attend various training courses and encourage them toqualify for professional examinations. They have a client base of more than 4000 satisfiedclients. They serve clients varying from individuals to corporate entities.VISIONCUSTOMERSEMPLOYEESPROVIDERSSHAREHOLDERSTheir vision is to become an Insurance Broker of First Choice by recognizing thatcustomers are their strategic partners and the core purpose of their business is valueaddition for customers by providing complete and economical risk solutions instead of mereInsurance Policies and firmly stand with them at the time of claim.They see that the skills of their employees is being improved continuously byproviding different training and challenging environment to them.Providers are the insurance company that OIB deals with.OIB provides complete andaccurate information for proper underwriting and helping them in fast and fair claimsettlement.
3. Page3Since this is a family business the shareholders of this company are the familymembers them self, but business is a separate entity and it needs to make profit for theshareholders and it sees to it.PROVIDERS• AIG• AXA Insurance (Gulf) B S C (C)• Green Crescent Insurance Company• Met Life - Alico• Methaq Takaful Insurance Company• National General Insurance Company• National Life and General Insurance Co SAOC• Noor Takaful• Oman Insurance Company• Orient Insurance Company• Royal and Sun Alliance• Takaful Emarat• The New India Assurance Company Ltd• Tokio Marine Nichido Fire Ins Co Ltd• Zurich Insurance Middle East DubaiCUSTOMERS• Arabian Coast Contracting• Dana Properties Group• European Perfumes• Flora Creek Hotel Apartments• Ghantoot Group• Gulf Engineering• Gulf Oil Middle East• Himalaya Drugs• Karachi Darbar Group• Mega Mall Sharjah Group• Modern Video• Mobile Plus Group
4. Page4• Pragma Group• Sun Metal Casting• Salam Studio• SEL Group of Companies• Sharjah Transport• University of Sharjah• VLCCSWOT ANALYSISSTRENGTHS Board stability Experienced and Vibrant management Established brand identity Strong client base Loyal staff Pedigree of integrity, diligence etc.WEAKNESSES Lack of a research and strategic planning department with productdevelopment Responsibilities Undifferentiated services ( competitors offer the same services) Lack of well articulated departmental and process policies Poor public perception of underwriters’ claims payment capabilities High expenditure profile Low market share
5. Page5OPPORTUNITIES Transatlantic partnerships for global access to insurance income Identification of new distribution channels Insurance and risk is an enormous sector, with many niches, specialties andnew developments.THREATS Impending increase in capital base requirement Ease of new competitor entry Loss of key clients to competition/ the actions of competitors Threat from insurance companiesU.A.E. INSURANCE SECTOR ANALYSISInsurance is a form of risk management primarily used to hedge against the risk of acontingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from oneentity to another, in exchange for a premium, and can be thought of as a guaranteed andknown small loss to prevent a large, possibly devastating loss. An insurer or underwriter is acompany selling the insurance; an insured or policyholder is the person or entity buying theinsurance. The insurance rate is a factor used to determine the amount to be charged for acertain amount of insurance coverage, called the premium.According to researches the UAE insurance industry has emerged as one of thefastest growing insurance industries. Although it is relatively small in comparison to the otherpart of the world but the scope for further expansion is huge. Low insurance penetration ratein UAE along with a favourable economic and a demographic condition drives the markettowards a high growth prospective for the existing players and new ones throughout theglobe. The huge untapped insurance market in the country increases the growthopportunities.According to the latest research report, “UAE Insurance Market Forecast to 2012”,the insurance industry witnessed a CAGR of around 21% during 2006-2010, and theyanticipate that in future, the industry will exhibit a double-digit growth, owing to governmentinitiatives, innovative and diversified product portfolio, and strong economic growth
6. Page6conditions in the country. Moreover, high demand for life insurance, medical insurance andaccident insurance promises huge growth prospects for the industry due to the emergenceof low premium or customized insurance products under these segments. In this regard, wehave conducted an extensive research and analysis on the UAE insurance industries andvarious related segments.INSURANCE BROKINGIntermediaries between underwriters and the insured are mainly insurance brokersand insurance agents. There are over 100 plus registered insurance broking firms and about15,000 plus insurance agents in UAE. Omega Insurance Brokers is one among many inUAE who does the insurance broking. The competition is really high in this sector and itrequires hard work to sustain in the market.SERVICESThe services provided by insurance brokers include: Insurance (General insurance and Life & Pension) Re-insurance Risk Management Underwriting ClaimsCRITICAL SUCCESS FACTORSThe following factors were identified as being critical to achieving success in the insurancebroking industry: Good financial base Skilled and knowledgeable staff Quality and speed of service delivery Extensive global access Quality of clientele Foreign partnershipCHALLENGESThe UAE insurance industry is characterized by numerous players, most of whom are ofsimilar size and competitive positioning.The industry is highly competitive, particularlyconsidering the slow pace of growth in overall market size; and the ease of entry of new
7. Page7policy. Other bear points of the industry are; because of competition, underwriters collect farbelow the standard price required on a policy in order to get a business. The flip side to thisis that commission have to be paid in addition to other business development fees this realityweakens the claim payment capability of underwriters at policy crystallization.Another weakness is the issue of fake insurance certificates being circulated. This integrityissue strikes at the heart of the industry and casts a shadow of doubt on the efficacy ofInsurance policies.SYNOPSIS OF THE TASKThe task assigned to me is to assist the accounting staff in their daily routine. In thisorganisation there are about 6 accounting staff who handle different section of work.I have been assigned with Calculation of Sales Person Commission Payments to Insurance Company Bank ReconciliationCalculation of Sales Person CommissionUnder this I am required to compute the commission that is to be paid to the sales staffof the company. There are two types of sales staff;I. Salaried Sales StaffII. Non-Salaried Sales StaffSalaried Sales StaffSalaried sales staff are those staff who are employed by the firm with employmentvisa. They are given monthly salary as well as a percentage of commission to them for thesales made.Non-Salaried Sales StaffNon-Salaried Sales Staff are those who work in their own visa. They are just anagent of the company to whom only a commission is paid for the sales they have made.
8. Page8So while calculating commission for sales person, commission is only calculated forthe amount that has been paid for the sales made, the payment that remains pending is notincluded.Payment to Insurance CompanyAs we work as intermediary between the insurance company and the insured we aresuppose to make payments to the insurance company on behalf of the insured.While making payment to the insurance company we take our part of commissionfrom the Gross Premium paid by the customer.The Gross Premium includes the sales person commission and the company’scommission too. Therefore while paying to the insurance company the Net Premium amountneeds to be calculated and only then it needs to be paid.Bank ReconciliationIn accounting, reconciliation refers to a process that compares two sets of records tomake sure they are in agreement. Reconciliation is used to ensure that the money leavingan account matches the actual money spent; this is done by making sure the balancesmatch at the end of a particular accounting period.I am supposed to reconcile the bank statements with the company statement. Thecompany statement can be retrieved from the accounting software that is being used in here.The bank statement is got through the respective banks website.The reconciliation process is done once in two days and compulsorily on Thursdayas it is the weekend.What the company expect from meBy entrusting this job on me they can make sure that the work is up to date as theaccounting staff who handles this will be leaving for her one month annual leave by the endof this month.So I am given the opportunity to study the work under the concern staff and do itindependently once she leaves for her vacation.
9. Page9Schedule8/05/2013 – Date of Joining9/05/2013 to 17/05/2013 – Job Training19/05/2013 to 24/05/2013 – Work under guidance27/05/2013 to 27/06/2013 – Independent workREFERENCESWibliographywww.ia.gov.aewww.insurancemena.comhttp://www.zawya.com