10Contents Acknowledgment………………………………………………………….docx

10
Contents:
Acknowledgment……………………………………………………
………………………
Abstract
…………………………………………………………………………
…………………...Chapter 1:
Economic insurance sector in Saudi
Arabia……………………………………………..
Problems that the economical insurance sector in Saudi Arabia
is facing………..
Goal of the
project…………………………………………………………………
…..
Objective of the
project……………………………………………………………….
Company profile
…………………………………………………………………………
…..
Introduction of
Marsh………………………………………………………………..

Marsh & McLennan Company SWOT
analysis……………………………………
General
line……………………………………………………………………
……………
Medical………………………………………………………………
………………………
Placement……………………………………………………………
………………………
Chapter 2:
Data
collocation……………………………………………………………
………………
Chapter 3:
Computing liquidity ratio
………………………………………………………………..
Computing profitability measures
……………………………………………………….
Profit margin
…………………………………………………………………………
…..
Computing market value measure
………………………………………………………….
Conclusion
&recommendation……………………………………………………
………..
Reference……………………………………………………………
……………………..
Appendix
…………………………………………………………………………
………...
Abstract
Insurance companies have played a big role in ensuring that
they take risks on behalf of the insured. By being insured, the

insured is able to have peace of mind. A good protection and
management are done for your business. However, in order to be
successful in the insurance sector, there are several participants
who play key roles in the sector. This project shows how one of
the participants, the insurance broker, works in this sector.
An insurance broker is one of the participants who help the
company in selling and negotiating insurance for compensation.
The insurance broker duty is to work and get the best interest of
the insured or his client and provide the right advice, which is
independent of any influence of the insurance company in terms
of professional advice.
This project shows a framework of all the roles of the insurance
broker in the insurance company into much detail. An insurance
broker is very important in the insurance company in ensuring
its success. In this project, the insurance broker is the main
theme and a clear illustration is made on how they bring an
effect in the sector. The growth of the insurance services sector
is illustrated how it has affected by the presence of the
insurance broker in the sector.
A close statistical data review of the insurance sector is
undertaken in the project. A review of how Marsh &McLennan
shows the role of their insurance broker is laid out. They
particularly deal with clients and new customers by explaining
to them the products offered by the company and the benefit
they get from it. The project talks about how to avoid risks that
insurers are exposed to, and how strategies on how to grow in
the sector.
Chapter1:Introduction

Background
Economic insurance sector in Saudi Arabia
In the 1950s Saudi Arabia had a small amount of the
insurance activity. The industry started showing sustained
growth after the oil boom in 1970 as foreign insurance set up
themselves to provide for assets in the country’s hydrocarbons
industry. The insurance practice was considered illegal since it
was seen as the involvement of some acts prohibited under
Sharia such as uncertainty and gambling. In 1977, Ulema who
were the kingdom’s council of senior declared that that
insurance that was deemed would be permitted to run again.
This made local companies to offer insurance that was based on
the takaful model which provided increasingly popular
somewhere else in the region (Ramady, 2010).
As there were more companies growing to sectors and
others introduced, there was the lack of regulations to govern
these industries which led to concerns about sustainability and
lack of public confidence. In 2002, Saudi Arabian Monetary
Agency had its first task on developing a sustainable legal
framework and its formulation of the law on supervision of
Cooperative Insurance Companies established a platform from
which the industry could develop. The Cooperative models
adopted in Saudi makes it unique in the Sharia-compliant
insurance sector, the flexibility of this model is a distinct
competitive advantage for some companies.
Between 2008 and 2012, the insurance market grew to 18%

p.a based on the study by Saudi Hollandi Capital. The
competition was intense in since a study showed that in
December 2014 there were 35 operating insurance and
reinsurance companies in the domestic market. In 2015, there
was an increase in written premiums to SAR 36.5 bn from SAR
30.5 bn in 2014. This increase was brought by the increase in
the number of insurance policies. The weighted average
retention rose to 83.0% in 2015 except for the motor and health
insurance ratio which was 32.0%. The reason for the stagnation
of this insurance is due to the increase in net claims.
Saudi is now a stable and regulated market. The regulation
introduced by Saudi Arabian Monetary Agency covers areas
such as solvency requirements, risk management, risk-based
pricing, capital adequacy and reserving. The domestic insurance
sector registered the highest growth rate in the world. Saudi had
the lowest share of life insurance premium in written policies.
Though the life insurance sector is low, it is not expected to rise
unless the government decides to reduce social security benefits
to reduce fiscal deficit. Regulatory changes and premium in the
motor and health care may lead to the future growth of the
insurance sector.
In early 2016 the research that was conducted showed that
conditions have been a challenge in 2015. Some companies have
experienced strong growth premiums while others have recorded
a fall (Rasheed, 2010).
Problems that the economical insurance sector in Saudi Arabia
is facing
Inflation is one of the major challenges that the
insurance sector in Saudi Arabia is facing. The operation costs
of the activities have become high as inflation increases time to
time. This leads to the decrease in the value of the investment
portfolio of the insurance firms. The compensation of the
insured increases and in case the insurance companies end up
making low profits or losses to give the claims.
Competition has also greatly affected the insurance

sector. Many insurance companies have emerged in Saudi
Arabia with new and better ideas. This has brought a decrease
in profitability because the competition has made insurance
companies to make decreases in premium rates. This has
affected the profitability of the companies because in order for
them to attract customers then they must ensure that they have
the most attractive rates.
The implementation of reforms and regulations on has
greatly affected the insurance sector in Saudi Arabia. The
regulations set are to have a positive change in the sector by the
year 2020. At this time, the regulations have negatively affected
this sector. The profitability in the sector has greatly reduced
and this makes in difficult for the companies in the sector to
undertake its activities. The oil prices have reduced and
therefore adhering to the regulations becomes challenging for
the companies in the sector. The firms in the oil insurance
sector are entitled to not obeying the set regulations.
Shortage of manpower has also been a great challenge in
the sector. The sector has a small number of skilled laborers
which affects the activities of the insurance companies. There
are fewer chances of importing skilled workers for the sector
due to non-availability of visas for them. The companies are
forced to pay high salaries to the available laborers which may
affect the profitability of the companies.
The insurance sector in Saudi Arabia has greatly grown and
this has attracted middlemen in the sector. They have affected
the sector and this has pulled down the growth of the sector due
to reduced profitability. The sector faces this due to lack of full
information about the various fields of the sector. The
intervention of the middlemen reduces the transparency of the
companies and the clients (Wilson, 2004).
Some of the insurance firms do not have the most
effective marketing strategies. This makes them to not reach all
the target clients in the market. The companies are therefore not
able to understand the various preferences needs among other
market forces. The insurance firms are not able to express their

capability and offer their services fully and this makes it
difficult for them to achieve profit maximization.Goal of the
project:
The project shows how the growth of the insurance services
sector, and talk of the economic insurance sector, also, what the
challenge facing now and in future. in addition explain and give
information about Marsh & McLennan Companies through the
SWOT analysis, also how to deal with clients, and financial
ration. finally, provide advice and recommendations to
insurance broker to clients that which is an important role to
strengthen the insurance market to become more competitive in
the insurance industry.Objective of the project:
The role of insurance broker who to deal with several insurance
companies, and has knowledge of multiple type of insurance
policies formulated, it disposes of its clients and help them
make the best decision. Company profile:
General:
The company is global expert service firm offering clients
advice and solutions in risk, including Marsh the insurance
broker, intermediary and risk advisor; Guy carpenter, the risk
and reinsurance professional ; Mercer , the provider of HR and
related finance advice and services ; and Oliver Wyman Group,
the management, economic and brand consultancy. with
approximately 60,000 workers worldwide and annual income of
approximately $ 13 billion, the company provides analysis
,advice and transaction capabilities to clients in more than 130
countries.
The company conducts business through two segment:
Risk and insurance service : includesrisk management activities
as well as insurance and reinsurance broking and service.
consulting : includes health, retirement, talent and investments
consulting service and products, and experts management,
economic and brand consulting services.Introduction of Marsh:
Marsh set up working for more than 140 years, one of the
largest major insurance companies in the world. Marsh in more
than 130 nations around the world , Marsh auxiliary of the

organization 12 of Marsh & McLennan Company. Marsh
targeting the Middle East through the opening of a branch in the
Kingdom of Saudi Arabia, for the practice of traditional
insurance services, and presented to both individuals and
companies that operate in the Saudi market, with more than
2,500 employees, and three branches in the UK, it began with
Riyadh, and expanded to Jeddah and Al-Khoper, the company
has an extensive list of services and products customized to fit
the needs of the Saudi customer.Marsh & McLennan
Companies, Inc. SWOT Analysis
A business analysis of Marsh & McLennan Companies Inc., a
global professional services group providing risk and insurance
and consulting services, is provided, focusing on the strengths,
weaknesses, opportunities and threats (SWOT) faced by the
company.
Strengths:
Cost advantage
Effective Communications
Loyal clients
Market share leadership
Reputation administration
:Weaknesses
Poor supply chain
Low market share
Opportunities:
Asset leverage.
Financial markets (raise cash through obligation, and so forth.)
Emerging markets and extension abroad
Product and administrations extension
Takeovers
Threats
Competition
Advertisements
The company can be represented in the following chart that
stimulates the company's hierarchical structure:

Every one of office in the organization has many capacities to
process; I could specify just some of these capacities that
identify with every division:
The firs department of Risk Management, which is a core
department to Marsh corporation, due to its complicated duties
needed to be practiced
The department functions are:
The second section of the work in the marsh is the insurance
department, which has extensive work on the basis of
'consensus, experts and customers wishes and property, and the
risk.
General line:
It is divided into three main sections:
1_ Motor
2_ Non motor
3_ Customer service
1- Motor
Procedures of Motor :
Receipt of a notification from the client about the incident,
then we ask the client some of required papers, such as (policy
report, the incident sketch, license, and Estmara). After that,
we make a report to the insurance company to record the claim
then send the client a car to the agency to pricing the value of
reform. We follow up to the insurance company to issue
approve of the pricing , when we reach approval the vehicle
start to reform of the agency. Marsh require reform bill from the
client to send the invoice to the insurance company to take the
money and deliver it to the client to lock's of claim.
2- Non -Motor
It depends on the type of claim and of any kind of policy:
1-Property/ Business interruption claim

Fire / Water damage
In the happening of Fire incident, call the Civil
Defense and get their report
Theft claim
In the case of theft, and report the incident to the police powers
and get their report, focusing on that the burglary by forced
entry. (Please note you must be theft by forced entry into the
premise and policy does not include any mysterious
disappearance of the property / equity)
Set up the list of stolen things with their obtained unit costs.
Please ensure that the following steps are taken after
a loss: Discuss every single vital stride to protect the property
from more loss or harm 1-
2- Isolate the damaged goods and prepare a property listing of
all of the items.
3- put in order a detailed data sheet showing quotations for
Debris removal (if applicable), cost for repairing/replacing
damaged goods with supported documents/invoices based on the
same or like kind and quality. Review this with us to guarantee
all is all together before submitting it to your
underwriters/adjusters.
4- Please make sure that does not remove the damaged property
without a search / prior approval of officers or insurance
companies. However, where the situation warrants removal of
damaged goods ensure that a sufficient number of images, and
all the details are fully documented .
Marine Claim:Shipping port
Counseling and clearing specialist that if discovered harmed
shipment or short-got at the port, should know the stevedore,
shipping operator suppliers invited to conduct a joint survey
with the inspector insurance companies and get damaged their
report.
shipment after arriving in the warehouse from the port

Upon coming of the container. Shipment at the warehouse on
Truck, the stockroom in-charge should check the situation of
the shipment inside the container and if found damaged divide it
for the check up by the surveyor. Then put together the lists of
the damaged shipment and the claim bill as per unit price
mentioned in the Commercial bill.
Inland transit claim
While loading shipment on the truck, be ensure that the
shipment in good conditions and delivery receipt and truck way
bill carries full details of the shipment. also, an invoice issued
with the details of shipment and the unit price. then ensure that
shipment is properly covered by the Tarpaulin or strapped .
If the shipment is damaged during road accident, please advise
the transfer company to report the matter to the Police and
obtain their report. Then segregate the damaged shipment and
prepare the list of damaged shipment. If the damaged shipment
is repairable obtain a repair estimate or your claim
bill.WORKMEN’S COMPENSATION CLAIM
STEP - ONE
The member of staff should be taken to a GOSI owned or
assigned medical facility with a GOSI insurance card or in a
life-threatening situation to the nearest medical facility. Report
the incident to GOSI in their prescribed form as per GOSI rules
and regulations. Please note the claim should be notified to
GOSI within 72 hours of occurrence of the accident/injury .
STEP – TWO
Notify MARSH with the following details.
Name of the Employee, Incident report stating date of accident,
circumstances and cause of the injury. We would then formally
notify the underwriters to register claim. The Worker’s
Compensation policy issued for DIC of GOSI will cover the
claim in case GOSI rejects the claim or settle partially.

MONEY CLAIM
Report theft or loss of the money to the Police authorities with
the documents supporting of loss and provide the following
documents for the underwriters to process the claim.
FIDELITY CLAIM
Directlyupon discovery of any financial loss to the corporation
directly resulting from dishonest act(s) of an Insured employee
which consequently may lead to a claim under the policy, you
need to inform the claim to MARSH along with a short summary
of the happening and level of loss. At the same time, informing
the matter to the police to protect insurer’s retrieval rights and
take all reasonable steps to lessening the loss.
Do not free the Passport to the worker until the money is
recovered or the case is finalized by the authorities.
PUBLIC LIABILITY CLAIM
Informing the case to MARSH directly upon receipt of claim
from the Third party, lawful notification , call from the court in
respect of the Property harm or physical injury to the Third
Party. Do not allow or commit any liability or negotiate
settlement.
ERECTION ALL RISK CLAIM
Please make sure that the following steps are taken after a loss
1- Obtain all necessary steps to protect the property from
more loss or damage
2- Separate the damaged goods from undamaged
property and prepare a property inventory.
listing all of the things. 3-
4- Please make sure no damaged property is removed
without prior inspection and get approval of adjusters or
underwriters. However, where a situation warrants removal of
damaged goods, ensure enough number of photographs are taken
and all details are fully documented . 3- Costumer Service :
Action steps are as follows:

1) As per the client's request we get quotations from the market
for the general line policies.
2) We compare the quotation received from each market.
3) We advice the client to select the best quote after our review
of the quotations.
4) Once the client instruct us to place the policy after selecting
the best quotations we instruct the insurance company to
issue the policy.
5) Insurance company issue the policy based on the agreed
terms and conditions in the quotation.
6) Once we receive the pill it from the insurance company we
review the policy to check whether the terms and conditions are
in accordance with the agreed quote .
7) We issue our an invoice and then send the original policy and
the invoice to the client.
2- Medical :
As takes after:-
• inform the insured/client of the claim procedures.
• Prepare Reimbursement Claims documentation check list.
• Analysis of claim records
• Submission of claims to insures
• Acknowledge claim to the clients
• Follow-up claim settlement from the insurers
• Audit the claim settlement and ensure the settlements are in
accordance with approach
• Adjudicate the claim and errors to be brought up with safety
net providers
• Update assert settlement to the insured
• Assist the insured to acquire endorsements incase of any
issues at APN
• Prepare different cases reports to the customer
• Prepare different inside reports to the Management
• Assist the arrangement administrator group as and when
required
• Keep great Public relations aptitudes with the colleagues and

also with the clients
Daily active:( addition/deletion) :
Addition:
1- Ask from client the ID card from the insurance and all the
papers relating to the person required to Add.
2- Send to the insurance company all the papers.
3- follow up with the insurance company then conform make
sure the information is correct.
4- after that, issue the card insurance then received to the client.
Deletion:
The same steps, but the difference that the company gives to
agree to cancel the client from the policy.
placement :
What is it ?
"It is a document created by the broker contains a summary of
the conditions and terms of an offered insurance or reinsurance
contract".
Easy slip preparation:
First, for doing the slip we should have access to the company
previous policy.
Second, we improve and suggesting more cover and include it in
the slip.
Third, ask the client to provide a letter (BOA) which is the

Broker of Record that mean this broker company had an
authorized Marsh to work in behalf of this company.
Finally, formulate the slip and send it to the market “selected
insurance companies” which is then presented by the broker to
view their consideration
Start creating the Slip
1-This process start before 60 days from expiry
( Be careful with the Network, Deductible, Dental and Optical
limits.)
And make sure to include all the special conditions mentioned
in the current policy or if something agreed during the policy as
memorandum.
2-Receive or request the BOR from BDV or the CE team.
Ask for the following : ( active list , claim experience, CR
copy, and copy for the current policy.
3- Create the Marketing list as for our format
All it is matter in this stage is to have ( date of birth, ID
number, & nationalities )
If there is anything missing ask the Client servicing team to
provide you with.
PREPARING A MEDICAL SLIP :
The information should be included in the slip:
1-Policyholder Name.
2-Commercial Registration Number.
3-Sponsor ID.
4-The cover they have.
5-Policy period.
6-Policy wording.
7-The group classification.

8-Preferred providers’ network.
9-Age Limits.
10- Who is insured in this company?
11-Annual Maximum
12-Consultation bench mark out of approval.
13- In patient treatment/ Dental/ optical.
14-Preapproval limit
15-Other benefits
Marsh mission :
Marsh create peace of mind by passionately delivering
exceptional employee benefits and risk management ,solutions,
committed to:
1. Providing world-class recourse with local touch
2. Serving our clients, colleagues, carriers and communities
3. Acting with integrity and respect
Marsh vision
To be the world class leader, revolutionizing our industry and
our clients experience
Marsh today:
Marsh is the number one in insurance risk management
Chapter 2:

Methodology
Data collection:
The data will be collected from secondary sources to have a
well overview on the case.
Primary Data:
I have conducted several interviews with the supervisor in
marsh to gather information about what the role of the
Insurance brokers between clients and Insurance companies to
get more information Secondary Data:
There are many sources that I have taken the information that I
used on the project which are the company records, internet
,and book. Also, financial reports of the company year (2014 to
2015)

1- Scenario
" Zahid Group represents a diverse range of companies,
offering comprehensive, customer-centric solutions in a number
of thriving industries. Some of those include construction;
mining; oil & gas; agriculture; power, electricity & water
generation; material handling; building materials; transportation
& logistics; real estate development; travel & tourism; and
hospitality"
In Al Khobar city, There was warehouse got stolen.
Where the people who attacked the security guard, They
handcuffed the security guard, and theft 150 tiers and smashing
a number of trucks. After investigation and inspection found ;
Total cost of replacing the tyres /wheel rims etc:
SAR452,907.00
Repair cost of the damaged tanker: : SAR
8,816.00
Total :SAR
461,723.00
The inventory at the subject location has been insured in the
amount of SAR 11,500,000 whereas the total value of the
inventory at the subject location at the time of loss has been
established at SAR 27,800.000
As the value at risk (SAR 27,800.00) is substantially higher

than the sum insured (SAR 11,500.000) pro rate condition of
average will apply as follows:
(sum insured : SAR11,500.000 )* (claimable loss: SAR 461,723
) = SAR191,001
(value at risk : SAR 27,800,000)
Less policy deductible :: SAR 10,000.00
Net adjustment :: SAR 181,001.00
Finally , Zahid global company did not provide full
information to the insurance company. Which led to a big loss
in the millions. A result, the insurance company refused to pay
the full insurance.
2 -Scenario:
Rayyan when born has a nice eyes, when he was 13-years- old.
His mother noticed that the upper eyelid heavy, and presented to
Dr. specialist. After tests and analyzes Dr. discovered that he
has a very rare disease. He needs surgery. In the fastest time.
And he has medical insurance card, but surgery is not coved by
insurance , Because it is a cosmetic.
He needs to undergo surgery in his eyes because injured
Relaxant eye eyelid. The hospital said to his mother made the
surgery by paid cash then ask the insurance company as claim.
Insurance decision that the injury is not covered in the policy.
The claim rejected, and the operation was conducted.
After that, Dr. said that the issue is not cosmetic, but is
necessary, because it was suffering from pain in the neck and
headaches.
Finally, his mother still provided the claim to the insurance
company to paid the amount. Until now, the issue under the
process. Data analyses:
The company is organized as holding company , a legal entity
separate and distinct from its operating subsidiaries. As a
holding company without significant operations of its own. the
company is dependent upon dividends and other payment from
its operating subsidiaries to meet its obligations for paying

principal and interest on outstanding debt obligations , for
paying dividends to stockholder , for share repurchases and for
corporate expenses . We also provide financial support to our
operating subsidiaries for acquisitions , investments and certain
parts of their businesses of Guy Carpenter . Other sources of
liquidity include borrowing facilities in financing cash flow.
The company derives a significant portion of its revenues and
operating profit from operating subsidiaries located outside of
the United State. Money from the company's operating
subsidiaries located outside of the United States are regularly
repatriated to the United States out of annual earnings.
At December 31 2015, the company had approximately $
800 million of cash and cash equivalents in its foreign
operations, substantially all of which is considered to be
permanently invested in those operations to fund foreign
investments and working capital needs. At the current time , the
company does not intend to repatriating any of this cash. The
non-U.S. cash and cash equivalents considered permanently
reinvested includes $191 million of operating funds required to
be maintained for regulatory requirement or as collateral under
certain captive insurance arrangements. The company expects to
continue its practice of repatriating foreign funds out of current
annual earnings. While organization does not predict a need to
repatriate the funds which are currently deemed permanently
invested , if facts or circumstances change, management could
elect to repatriate them, if necessary, which could result in
higher effective tax rates in the future. During 2015, the
company recorded foreign currency translation adjustments
which reduced net equity by $ 643 million . Continued
strengthening of the U.S. dollar against foreign currencies
would further reduce the translated U.S. dollar value of the
company's net investments in its non-U.S. subsidiaries , as well
as the translated U.S. dollar value of cash repatriations from
those subsidiaries. cash and our consolidated balance sheets
includes funds available for general corporate purposes. funds
held on behalf of clients in a fiduciary capacity are segregated

and shown separately in the consolidated balance sheets as an
offset to fiduciary liabilities. Fiduciary funds cannot be used for
general corporate purposes, and should not be considered as a
source of liquidity for the company. Computing Liquidity
Ratios:
Current Ratio = CA / CL
2015
2014
Current Ratio = CA / C
1.360m
1.505m
Total
The current ratio is the liquidity ratio that measures a
company's ability to repay short-term and long-term
commitments. In 2014 was the high-current assets and have the
ability to pay the obligation. In 2015 invested Marsh profits by
buying shares, and acquisitions through business combinations
(Both liquid and non-liquid) ratio of total liabilities to current
company.
Cash Ratio = Cash / CL
2015
2014
Cash Ratio = Cash / CL
0.371%
0.5325%
Total
The cash ratio or cash coverage ratio is a liquidity ratio that
measures a firm's ability to pay off its current liabilities with
only cash and cash equivalents. In 2014 the liquidity ratios, the
highest cash coverage means that the company is more liquid
and can be more easily financed debt. Creditors are particularly

interested in the figure because they want to make sure that
their loans will be repaid. In 2015 the liquid is decrees because
there are more invested and acquisitions.
NWC to Total Assets: NWC /TA
2015
2014
NWC to Total Assets: NWC /TA
21.0659%
29.265%
Total
Working capital to total assets ratio measures the company's
ability to cover its financial obligations in the short term (total
current liabilities) through a comparison of the Total current
assets to total assets .In 2014 Marsh An increasing working
capital to total Assets ratio is usually a positive sign, showing
the company’s liquidity is improving over time. In 2015 Marsh
the percentage decline the company may have a very large
number of the total current liabilities, reducing the amount of
working capital available.Computing Profitability Measures:
profit counseling firms we depend to some degree on
guaranteeing that our advisors keep up sufficient use rates. Use
rates have influenced by various components, including:
· Our capacity to move counsels promptly from finished
ventures to new undertakings, connect with advisors recently
designated rapidly in salary creating exercises.
· Our capacity to reliably secure new business signings,
particularly in light of the fact that aspect of our
responsibilities is not rehashed in the way of the tasks.
· Our capacity to estimate interest for our administrations, along
these lines keeping up a fitting size in both our workforce and
geographic territories.
· Our capacity to oversee wearing down.
· Unexpected changes in the extent of customer engagements.

· Probability of irreconcilable situations that may oblige us to
decline customer engagements that we generally would have
acknowledged.
· Our need to commit time and assets to deals, preparing and
proficient advancement and other non-billable exercises.
· Possible interruption from acquisitions and manners
operations affect. What's more, general financial conditions.
In the event that the usage rate for our counseling experts
decays, our net revenue and profitability could decrease.
What's more, the profitability of counseling firms we depend
to a limited extent on the costs we can charge for our
administrations. Cost and charge influenced by various
components, including:
· clients' impression of our capacity to include esteem through
our administrations.
· market interest for the administrations we give.
· Our capacity to grow new administrations and the presentation
of new administrations by contenders.
· Our contenders valuing arrangements.
· To what degree the improvement of our clients at home or
other ability to perform Services that may somehow purchase
from us; and General monetary conditions.
Profit Margin: Net Income / commissions:
The best estimates of the average insurance company's net profit
margin of between 3 and 8%, the weighted average rate of about
4 to 5%. Health and property and casualty insurance (which
incorporates auto protection) tend to offer higher overall profit
margins from the life insurance . The normal overall revenue for
protection merchants is higher than that of the protection
business as a rule, with the normal net benefits for
representatives about 10%. Like all different organizations and
organizations in the protection segment causing expenses and
offer items, and must locate a gainful harmony between working
expenses and the costs that the market will bear. The expenses
of working in the field of insurance agencies incorporate cash

that the safety net provider pays for the specialist organizations.
For medical coverage organizations, this would be a repayment
to healing facilities or specialists. On account of collision
protection, and that incorporates installment to repair shops.
2015
2014
Profit Margin: Net Income / commissions
38.336%
7.6066 %
Total
In 2014 to 2015 , profit margin for the insurance company can
change significantly as a result of fluctuations in costs. Changes
in the costs of services provided, and the policy of price
changes and the number of claims received all factors that could
cause the profit margin of the insurance company to change
from year to year. For the purposes of long-term evaluation of
the companies in the insurance sector, analysts consider the
annual profit margin data to be very useful information.
Return on Assets(ROA) = Net Income / Total Assets
2015
2014
Return on Assets(ROA) = Net Income / Total Assets
21.0762%
4.1086%
Total
In 2015 Return on assets (ROA) is an indicator of how
profitable the Marsh is relative to its total assets more than
2014 . Return on assets gives an idea of how efficient
management is at using its assets to generate earnings
Return on Equity (ROE) = Net Income / Total Equity
2015

2014
Return on Equity (ROE) = Net Income / Total Equity
10.57%
3.35%
Total
The total purchase consideration for acquisitions made during
2014 $ 772 million, which consists of cash paid of $ 575 million
and postponing the purchase is based on an estimated contingent
consideration arrangements primarily on EBITDA and revenue
targets over two to four years. . During 2014, the company also
paid $ 25 million of deferred exchange for $ 42 million, and the
purchase is likely related to acquisitions made in previous
years.
The total purchase consideration for acquisitions made during
2015 about $ 1.2 billion, which consists of cash paid of $ 1
billion and the purchase of deferred consideration dependent
estimated at $ 176 million. Likely over periods of 2-4 years.
During 2015, as the company paid $ 36 million of deferred
exchange for $ 47 million, and the purchase is likely related to
acquisitions made in previous years. In addition, other
intangible assets the company bought in the amount of $
2000000. Computing Market Value Measures:
The company's assets and liabilities valued at fair value on
a cyclic basis in the hierarchy of the fair value of the tow levels
as specific in the accounting are classified. The fair value
hierarchy gives the highest main concern to the prices scheduled
in active markets for identical assets and liabilities (Assets and
liabilities that are based on unadjusted traded assets or
liabilities identical values in an active market prices ) and less
priority to inputs unobservable (Assets and liabilities that are
based on prices or valuation techniques that require inputs that
are both unobservable and significant to measure the overall
values of fair value. These inputs reflect private management
assumptions about the assumptions that market participants use

in pricing the asset or liability ). In some cases, the inputs used
to measure fair value may fall into different levels of the
hierarchy of fair value. In such cases, the level in the hierarchy
of fair value, for disclosure purposes, is determined based on
the lowest level input that is significant to the fair value
measurement.
And it is classified on the basis of assets and liabilities
recorded in the consolidated balance sheet at fair value on the
input in the valuation techniques.
For example:
Equity Securities and Mutual Funds - Level 1
Investments for which market quotations are readily available
are valued at the sale price on their principal exchange, or
official closing bid price for certain markets.
Contingent Purchase Consideration Liability - Level 2
Purchase consideration for some acquisitions made by the
Company includes contingent consideration arrangements.
Contingent consideration arrangements are primarily based on
meeting EBITDA and revenue targets over periods from two to
four years. The fair value of contingent consideration is
estimated as the present value of future cash flows resulting
from the projected revenue and earnings of the acquired
entities.
Chapter 4:
Conclusions and Recommendations

Conclusion:
The factors identified above are not exhaustive. Marsh &
McLennan Companies and its subsidiaries operate in a dynamic
business environment in which new risks emerge frequently.
Accordingly, In its main protection broking and risk counseling
business, Marsh utilizes a group way to deal with address
customers' risk administration and protection needs. Every
customer relationship is composed by a customer official or
customer chief who gets to the numerous business and risk
strengths inside Marsh to facilitate the assets expected to help
customers in breaking down, measuring and dealing with their
different dangers. Product and service offerings include risk
analysis, Product and service offerings incorporate risk
analysis , program outline and position, post-arrangement
program support and organization, claims support and backing,
elective risk procedures and a wide cluster of hazard
examination and risk administration counseling administrations.
Swamp's customers advantage from cutting edge examination,
profound specialized ability, a cooperative worldwide culture
and a reputation of creative item improvement. Swamp
administrations customers of all sizes, including multi-national
organizations, center market organizations, little business
ventures and private customers.Recommendations:

Marsh was founded 40 years ago. It has a high structure
management, contains several sections and departments each
responsible for specific sectors. There are some
recommendations that could help the company to increase the
development and growth :
1. Careful training of staff.
2. Make rotation between employees.
3. Participation in external conferences, about the development
of insurance in all fields.
References
Ramady, M. (2010). The Saudi Arabian economy. New York
London: Springer.
Rasheed, M. (2010). A history of Saudi Arabia. Cambridge New
York: Cambridge University Press.
Wilson, R. (2004). Economic development in Saudi Arabia.
London New York: RoutledgeCurzon.
MMC 2015 annual report .

Appendixes:
THEFT CLAIM (Documents )
Report the incident/loss with the following details/documents:
1- Location of damaged property.
2- Date and time of the loss.
3- Incident report stating circumstance and Cause of loss.
4- Estimated repair/replacement cost (indicating a) Material
cost.
5- Labor charges with breakdown of Man-hours and hourly
rates.

Details of the Person to be contacted for obtaining full details
6-
Civil Defense report (in case of fire damage.)
Police report for the theft and if the property damaged by the
Third Parties.
Insurance Certificate.
Bill of Lading / Airway bill (in favor of the client)
Bill of Lading / Airway bill (duly assigned by the bank, if B/L
issued to the order of the Bank
If the Original B/Lading / Airway bill not available, copy of
negotiable B/Lading Airway bill duly assigned by the bank and
the Carriers’ agent.
Copy of Charter Party
Commercial Invoices.
Packing List / Certificate of Origin.
Short Landing Certificate / Damage report issue by Stevedore.
Letter of Understanding (LOU) from the P&I Club.
Copies of the correspondence exchanged with the Shipping
Company agent / Suppliers
Claim bill as per the commercial invoices.
WORKMEN’S COMPENSATION CLAIM ) ) Documents
required
· Claim form duly completed and signed (attached).
· Police report (if the injury sustained in the road accident).
· Medical Report indicating nature of injury and sick leave

granted (if any).
· Original Medical Invoices with treating doctor’s prescription.
· Salary slip for the last three months.
· Time sheets in respect of sick leave availed per medical
advice.
· GOSI denial letter for rejecting claim or explanation for
partial settlement.
In the event of death
· Original and/or duly attested copy of the Death Certificate.
· Original and/or duly attested copy of the Medical report
stating the cause of death.
· Employment contract
· Copy of the ID / Iqama/passport.
· Salary slip (basic salary).
· Power of Attorney from the court In respect of legal heirs as
beneficiaries.
Documents required
· Incident report.
· Police report stating the circumstances of the loss.
· Accounting records.
· Invoices / Vouchers / Receipts.
· Safe details.Documents required ( Fidelity claim)
· Claim form duly completed.
· Police Report.
· Employment Contract
· Copy of Passport / Iqama
· External Auditor’s audited report quantifying loss.
· Accounting records.
· Bank Statement.
· Stock records.
End of Service Benefits (Includes; Due salary, commission,
bonus, air fare vacation leave etc.) Documents require (PUBLIC
LIABILITY CLAIM)

The following documents may become necessary in order to
establish legal liability and negotiate settlement of the
indemnity under the Policy. However, once the claim is
notified to the Insurers, they may take up the defense and advise
you of the action to be taken to conclude the claim
expeditiously.
· Incident Report.
· Police report.
· Notice of Loss / Writ / Summon served by the claimant (Third
Party).
· Copy of Contract with the Principal / Sub Contractor.
· Medical records / Invoices for the bodily injury claims.
· Estimate of repair and Supporting papers for Property damage.
· Proof of payment made to the claimant (Third Party).
· Court Verdict.ERECTION ALL RISK CLAIM
Report the incident/loss with the following details/documents:
· Detailed incident report from the Site/Project Manager
· Date and time of loss
· Date of the consignment arrived at site.
· Location of damaged property.
· Nature & Extent of Loss
· Estimated repair/replacement cost Material cost
· Labor charges with breakdown of Man-hours and hourly rates.
· Person to be contacted for obtaining full details.
· Bill of Lading/Airway bill for the original shipment &
invoices.
· Bill of Lading/Airway bill for the replaced items and claim
bill with the
· Supporting invoices.
DOCUMENTS REQUIRED FOR INLAND TRANSIT CLAIMS
Insurance Certificate.
Truck waybill noted with remarks.

Commercial invoices.
Packing list.
Police report (road accident)
Civil Defense (fire damage)
Claim bill.
To be prepared on the letter-head
TO CARRIERS /SUPPLIERS
ADDRESS
Attn: Mr.……
RE: Vessel / Airlines
Bill of Lading / airway bill No.
Description of the shipment :
Date of Arrival. :
Our Ref. No. :
Dear Sir,
We regret to inform you that we have received the above-
mentioned consignment damaged or short during the transit for
which we hold you responsible. Please arrange to depute your
representative/surveyor to inspect the damaged consignment
at……………… and you may contact, Mr.………………….
Mobile:…………………………..
As soon as the cause and extent of the loss has been determined,
we will present you with our formal claim bill. Meanwhile,
please acknowledge receipt of this letter.

Your truly
Company Name.
Risk Assesment
Industry Benchmarking
Analysis
Alternatives
Decision
General line
Medicals

Placement
Managing Director
Corporation Secretary
marketing Dep.
Finance Dep.
Insurance Dep.
Executive Assistant
Advisory Dep.
Risk Department
HR Dep.

10Contents Acknowledgment………………………………………………………….docx

10Contents Acknowledgment………………………………………………………….docx

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