https://www.mtholyoke.edu/courses/sgabriel/securities1/organization.

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http://www.slideshare.net/baserm/placing

Insurance & Reinsurance Brokerage Company Executive Summery

1. Business idea: o Insurance and reinsurance brokerage company (to be named) is
a Saudi based company that will provided a much needed services in a newly
founded insurance industry and will play a major role in the making of the insurance
market: The anticipated boom in the insurance market will increase the demand for
service providers in areas like risk management, identifying risk exposures and
translating them into insurance terms and insurance buying requirements ready for
risk transfer and the ultimate protection of investments. Offer the insurance market
access to international reinsurance markets where facultative reinsurance plays
major role in supporting local insurers accepting risks transfers and carry risks that
are normally restricted by their existing reinsurance treaties. This is a normal
service that major insurance and reinsurance brokerage companies worldwide offer
to their clients.
2. The market: The direct insurance market in the Middle East is expected to grow at
least 10% per year in the next five years. But, the Saudi insurance market is
expected to double in size by year 2008 and to triple by year 2009 when compared
with current figures. o The thinning in insurance professionals underwriting
insurance risks, solving claims, servicing major accounts as well as small ones shall
be filled by the expertise of the proposed brokerage company especially applicable
to its founders and their businesses. o Many insurance companies will register in
Saudi Arabia they will flood the market with their insurance products making it the
more difficult for insured to choose from. The broker is qualified to advise insured of
his insurance buying needs as well as of his risk exposures and then the broker
tailors the insurance protection plan and invites capable insurance companies to bid
for and will award the competitive and most compliant insurer.

Insurance & Reinsurance Brokerage Company

3. Strategy: o The brokerage company shall apply itself to: Serving all industries
including the insurance industry Providing the required services by having on board
the personnel that have the capabilities to do so. When it cant, then the company
can sub-contract to other professionals depending on the field that the company is
tackling. Its customers insurance/reinsurance-buying-needs as it does possess a
deep understanding of insurance and reinsurance markets, the local and some what
regional and most definitely the international. Establishing strong ties with

reinsurance brokerage firms in the USA, the UK and the Continent. Such ties will
bring to the Saudi insurance market the reinsurance capacities and risk carriers for
industries like Energy, Wet Risks, Off-shore Operations, Aviation hulls and liability,
Fiduciary exposures, Pecuniary losses, Professional Indemnities and the like of
specialized risks that require international underwriting. Penetrating the Saudi
market with the intention, within five years, to expand regionally starting with the
GCC, Jordan, Syria, Lebanon and Egypt. o The brokerage company can be formed
with a wide base of Saudi investors with conglomerates that demand particular
attention by the insurance market in order to be properly served. o While it may not
be necessary at first but the brokerage company will bring on board an international
reinsurance broker for the know-how that the international broker will bring to the
operation and access to international markets capacities (reinsurance or 100% risks
carriers for a fronting insurer in the KSA) as the local market may indicate the need
for.
4. Key Challenges: o The most significant challenges facing the brokerage company
is receiving the positive responses from locally registered insurance companies to
apply internationally acknowledge insurance practices and work ethics: SAMA
compliant Acceptable level of professionalism Honest and fair competition among
peers o Competing with already established brokerage companies existing in Saudi
Arabia which presents a key challenge for the brokerage company.