I’ve already written the report i need you to add 2 things that are missing in my report. 1- i need a plan report for my paper 2- there is a section that i have recently added in the paper that talks about the insurance sector in saudi arabia and the pr

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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 : includes risk 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.

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:

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:

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.

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 .

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

Directly upon 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

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)

Chapter 3:

Data Analysis

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 ) = SAR 191,001

(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

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

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

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.

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

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

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.

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.