Competitive Analysis of Al-Aman Takaful Insurance, Al Alamiya Insurance Company, and Al Madina Insurance Company - Case Study Example

COMPETITIVE ANALYSIS Student Name and ID Course Code and Title: BMFS N470_ Islamic Banking & Finance Date Abstract Here we evaluate the competitive analysis of, Al-Aman Takaful insurance, Al Alamiya Insurance Company, and Al Madina Insurance Company. We look at their product summary, their strategies and objectives, financials and the SWOT analysis of each. Islamic banking as applied by the three companies is a helpful arrangement of help whereby various people impart the risk of potential misfortune to any of them. Along these lines, Aman deals with the protection operations for the insured as their operators "Wakeel", and contributes supports for their benefit as their company directors. "Mudareb," against a settled expense for overseeing protection operations and an offer of benefits for contributing trusts. Wakala is an agreement between two gatherings by which one approves the other to oversee and contribute a certain measure of capital against a settled charge or a tagged offer of benefits (Aman, 2014)Mudareb is an agreement between two gatherings by which one offers a certain capital, while the other (the Mudareb) offers his exertion and experience to contribute the tagged capital. List of Companies The three competitors we are dealing with includes; Al Aman Takaful insurance, Al AlamiyaInsurance company, and Al Madina Insurance company. The companies offer almost similar products in the field of insurance. Companies Product Summary Al Aman Takaful insurance This insurance company provides insurance products; some include: Fire insurance, Aman gives to the participants, different Fire Insurance Policies against the fire risk. Its strategies incorporate assurance against the impacts of characteristic risks. (Act of God Perils, for example, seismic tremors, storms, surges, whatever other air aggravations and other routine dangers, for example, Burglary and so on). Contractors Insurance is applied in light of such rising need of contracting organizations (Aman 2014) Land improvement foundations and different associations should protect their risks under Engineering class of Insurance. Aman offers the beneath Engineering Insurance Products, Foreman's All Risk Insurance, Machines Breakdown Insurance, Electronic Equipment Insurance. Others include Destruction of Stock Insurance, Foremen Plants or Equipments Insurance, and Loss of Profit taking after Machinery Breakdown Insurance. General accident, Aman's General Accident Policies give spread against dangers that are undisputable nonstop dangers in most human culture particularly those portrayed by quick changing groups with complex social structures. Indeed General Accident Class is wide. Any protection for which there is no particular strategy is accessible is executed under this class. Liabilities, Aman offers phenomenal scope against obligation to outsiders under different liabilities arrangements as underneath. Al Alamiya Insurance Company This company deals in insurance products. First, we can highlight its activities, as the mission of the Company is to secure people and organizations.It also helps them to diminish, the risks they confront in their everyday life by giving protection items that address their needs (Aman, 2014 )The company’s products include Marine; Motor; Medical; General Accident and Engineering. The motivation behind the Company is to execute agreeable protection operations and related exercises. For example, reinsurance, office exercises, representation, or correspondence or go-between exercises. This is as per the procurements of the Control of Insurance Companies and such different laws and regulations in power in the Kingdom of Saudi Arabia. Al Madina Insurance Company It’s an important point to note here that Al Madina Financial Investment Services Co. SAOC began as a Brokerage firm in 1998. With an agreeable vision and diligent work Al Madina has become throughout the years to offer different sorts of venture and budgetary administrations. The company deals in products that include, Asset Management, Private Equity Investments, and Corporate Finance Advisory. Al Madina has likewise been effective in making new speculation open doors in the field of Real home, F&b, Insurance, and Logistics Companies Strategies and Objectives Al Aman Takaful insurance The company has strong strategies and objectives that will aid in this competitive market. Aman strives to surpass client desires by focusing on the most astounding models of professionalism, effectiveness, adaptability and reasonableness. Aman is focused on clients for the most astounding nature of administration upheld by a group of professionally qualified staff and administration (Aman 2014) Aman draws its quality from its client base and is completely aware of its client's necessities. Products are perfectly customized to suit each client's prerequisites. Alongside an exclusive expectation of administration, Aman's Policies are sponsored by Reinsurance of the most elevated requirements in the world. Al Alamiya Insurance Company The company’s strategies and objectives are made to suit its operations. Al Alamiya Cooperative Insurance expects to achieve a permit to offer property, marine, vehicle, therapeutic, mishap, and designing protection. Al Alamiya is furnished with an arrangement of solid business and individual items that are upheld by fabulousness in its two key center skills - guaranteeing and cases. Anyway while it is not acquainted with upper bargains and worldwide business, it never dismisses the way that private insurance arrangements are likewise gigantically essential. The company does all it can to offer the finest conceivable administration to the individual clients both in commercial and personal insurance. Al Madina Insurance Company To get to the company’s strategies and objectives, Al Madina offers a scope of the venture and consultative administrations that coddle both individual and institutional customers. Some of its administrations have been remarkable and spearheading, coddling particular need of its esteemed customers. The company spends significant time in Resource Management, Store Management, Portfolio Management, Private Equity Investments, Corporate Finance Advisory and Stock Brokerage to achieve its objectives. All the company’s staff, specialists, investigator, representatives, and administration suppliers work to one basic objective that is making the customers certain speculators and constructing risk-free money related future. Companies Financials The income statements for the three companies in the year 2013 were as follows, Al Aman Takaful insurance http://www.bloomberg.com/quote/ALALAMIY:AB Al Alamiya Insurance Company Source: http://quotes.wsj.com/SA/XSAU/ALALAMIYA/financials Al Madina Insurance Company https://www.zawya.com/middle-east/company/financials/1003664/Al_Madina_Insurance_Company_SAOG/AMAT.MSM/ SWOT ANALYSIS A summary of the SWOT analysis for the three companies is in the following tables Al Aman Takaful insurance Strengths Offering a variety of insurance products Customer loyalty Weaknesses Poor technology Marketing and day-to-day operations Opportunities Selling supplemental products Providing services as an insurance consultant. Threats Local competitors selling similar policies. Some people may move their policies to other insurance agencies. Al Alamiya Insurance Company Strengths Strategically located Duty-free access to markets Weaknesses Lack of qualified staff Technology not fully adopted Opportunities Readily available workforce Liberalization Threats Competition from other insurance companies High political risk Al Madina Insurance Company Strengths Offering a variety of insurance products Strong customer relations Weaknesses Use of paper transactions instead of digital solutions Marketing and day-to-day operations Opportunities Networking Provision of other services Threats Local competitors selling similar policies High political risks Market Outlook It is an important thing to look at the overall market these insurance companies are operating. Market players, the Australian market has experienced huge legitimization as of late and as an aftereffect of these mergers (Boomberge 2014) The three biggest backup plans (Insurance Australia Group (IAG), QBE and Suncorp Met way) now have an expected 84% offer of the immediate business. This focus at the highest point of the business sector is empowering a development in differing qualities at the base (Bayt 2014) Insurance market: these insurance companies are evaluated to control around 15% of individual lines and 80% of business lines. Worldwide specialists have been extending to the suburbs utilizing agents. Outlook: 'Rivalry stays solid for Australian general insurers in individual lines with late market contestants looking to build themselves. whilst the bigger players keep on focusing on both driving operational efficiencies and development, against a background of comprehensively stagnant rate increments. That said the arrangement of regular accidents that happened in the period are relied upon to keep on planning upward weight on rates for specific classes of risks in the affected areas. To conclude, there is a favorable competition among the three companies. All the three companies invest in insurance products; they share the same market for their products, and their common objective is to reach a wider market for their products and services. The company’s financials also reflect their strength in the market with Al Alamiya Insurance Company leading financially and followed by the other insurance companies. The company’s strengths, weaknesses, opportunities and threats of each company vary due to various factors. The Australian market for insurers is full of competition, this is caused my companies merging to improve their capital base and thus curb the high levels of competition. References Aman, 2014 retrieved from http://www.aman-diir.ae/financials.php Boomberge (2014)http://www.bloomberg.com/quote/ALALAMIY:AB Bayt (2014)http://www.bayt.com/en/company/al-alamiya-for-cooperative-insurance-company- part-of-rsa-group-1462431/overview/ http://www.amgioman.com/index.php?lang=en&task=report&itemid=55&cat=1 Zawya, (2014) retrieved from https://www.zawya.com/company/profile/1003664/Al_Madina_Insurance_Company_SA OG/ Read More