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OMEGA INSURANCE BROKERS L.L.C
Omega Insurance Brokers LLC was established in the year 2003 with a single
mission of providing matchless insurance services to the insuring Public at the most
competitive cost. Omega insurance Brokers LLC is the brain child of Mr. S. C. Mittal, the
founder Managing Director of the company. He is a Fellow of The Insurance Institute of India
and an Associate of Chartered Insurance Institute (London).
The company has grown from strength to strength since its inception. During this
short span of 10 years, the Premium income of the company has grown 27 fold. The
company started with two employees and now its a team of 100 plus professionally trained
individuals who are ever ready to serve our customers. Since manpower is the main asset of
the company, they send their staff to attend various training courses and encourage them to
qualify for professional examinations. They have a client base of more than 4000 satisfied
clients. They serve clients varying from individuals to corporate entities.
VISION
CUSTOMERS
EMPLOYEES
PROVIDERS
SHAREHOLDERS
Their vision is to become an Insurance Broker of First Choice by recognizing that
customers are their strategic partners and the core purpose of their business is value
addition for customers by providing complete and economical risk solutions instead of mere
Insurance Policies and firmly stand with them at the time of claim.
They see that the skills of their employees is being improved continuously by
providing different training and challenging environment to them.
Providers are the insurance company that OIB deals with.OIB provides complete and
accurate information for proper underwriting and helping them in fast and fair claim
settlement.
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Since this is a family business the shareholders of this company are the family
members them self, but business is a separate entity and it needs to make profit for the
shareholders 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 Dubai
CUSTOMERS
• 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
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• Pragma Group
• Sun Metal Casting
• Salam Studio
• SEL Group of Companies
• Sharjah Transport
• University of Sharjah
• VLCC
SWOT ANALYSIS
STRENGTHS
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 product
development 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
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OPPORTUNITIES
Transatlantic partnerships for global access to insurance income
Identification of new distribution channels
Insurance and risk is an enormous sector, with many niches, specialties and
new 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 companies
U.A.E. INSURANCE SECTOR ANALYSIS
Insurance is a form of risk management primarily used to hedge against the risk of a
contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one
entity to another, in exchange for a premium, and can be thought of as a guaranteed and
known small loss to prevent a large, possibly devastating loss. An insurer or underwriter is a
company selling the insurance; an insured or policyholder is the person or entity buying the
insurance. The insurance rate is a factor used to determine the amount to be charged for a
certain amount of insurance coverage, called the premium.
According to researches the UAE insurance industry has emerged as one of the
fastest growing insurance industries. Although it is relatively small in comparison to the other
part of the world but the scope for further expansion is huge. Low insurance penetration rate
in UAE along with a favourable economic and a demographic condition drives the market
towards a high growth prospective for the existing players and new ones throughout the
globe. The huge untapped insurance market in the country increases the growth
opportunities.
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 they
anticipate that in future, the industry will exhibit a double-digit growth, owing to government
initiatives, innovative and diversified product portfolio, and strong economic growth
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conditions in the country. Moreover, high demand for life insurance, medical insurance and
accident insurance promises huge growth prospects for the industry due to the emergence
of low premium or customized insurance products under these segments. In this regard, we
have conducted an extensive research and analysis on the UAE insurance industries and
various related segments.
INSURANCE BROKING
Intermediaries between underwriters and the insured are mainly insurance brokers
and insurance agents. There are over 100 plus registered insurance broking firms and about
15,000 plus insurance agents in UAE. Omega Insurance Brokers is one among many in
UAE who does the insurance broking. The competition is really high in this sector and it
requires hard work to sustain in the market.
SERVICES
The services provided by insurance brokers include:
Insurance (General insurance and Life & Pension)
Re-insurance
Risk Management
Underwriting
Claims
CRITICAL SUCCESS FACTORS
The following factors were identified as being critical to achieving success in the insurance
broking industry:
Good financial base
Skilled and knowledgeable staff
Quality and speed of service delivery
Extensive global access
Quality of clientele
Foreign partnership
CHALLENGES
The UAE insurance industry is characterized by numerous players, most of whom are of
similar size and competitive positioning.The industry is highly competitive, particularly
considering the slow pace of growth in overall market size; and the ease of entry of new
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policy. Other bear points of the industry are; because of competition, underwriters collect far
below the standard price required on a policy in order to get a business. The flip side to this
is that commission have to be paid in addition to other business development fees this reality
weakens the claim payment capability of underwriters at policy crystallization.
Another weakness is the issue of fake insurance certificates being circulated. This integrity
issue strikes at the heart of the industry and casts a shadow of doubt on the efficacy of
Insurance policies.
SYNOPSIS OF THE TASK
The task assigned to me is to assist the accounting staff in their daily routine. In this
organisation 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 Reconciliation
Calculation of Sales Person Commission
Under this I am required to compute the commission that is to be paid to the sales staff
of the company. There are two types of sales staff;
I. Salaried Sales Staff
II. Non-Salaried Sales Staff
Salaried Sales Staff
Salaried sales staff are those staff who are employed by the firm with employment
visa. They are given monthly salary as well as a percentage of commission to them for the
sales made.
Non-Salaried Sales Staff
Non-Salaried Sales Staff are those who work in their own visa. They are just an
agent of the company to whom only a commission is paid for the sales they have made.
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So while calculating commission for sales person, commission is only calculated for
the amount that has been paid for the sales made, the payment that remains pending is not
included.
Payment to Insurance Company
As we work as intermediary between the insurance company and the insured we are
suppose to make payments to the insurance company on behalf of the insured.
While making payment to the insurance company we take our part of commission
from the Gross Premium paid by the customer.
The Gross Premium includes the sales person commission and the company’s
commission too. Therefore while paying to the insurance company the Net Premium amount
needs to be calculated and only then it needs to be paid.
Bank Reconciliation
In accounting, reconciliation refers to a process that compares two sets of records to
make sure they are in agreement. Reconciliation is used to ensure that the money leaving
an account matches the actual money spent; this is done by making sure the balances
match at the end of a particular accounting period.
I am supposed to reconcile the bank statements with the company statement. The
company 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 Thursday
as it is the weekend.
What the company expect from me
By entrusting this job on me they can make sure that the work is up to date as the
accounting staff who handles this will be leaving for her one month annual leave by the end
of this month.
So I am given the opportunity to study the work under the concern staff and do it
independently once she leaves for her vacation.
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Schedule
8/05/2013 – Date of Joining
9/05/2013 to 17/05/2013 – Job Training
19/05/2013 to 24/05/2013 – Work under guidance
27/05/2013 to 27/06/2013 – Independent work
REFERENCES
Wibliography
www.ia.gov.ae
www.insurancemena.com
http://www.zawya.com
