SWOT Analysis of Insurance Industry

SWOT Analysis of Insurance Industry is discussed in this article with 16 points highlighted and thoroughly explicated for your perusal.

Insurance company strengths and weaknesses

SWOT Analysis of Insurance Industry
SWOT Analysis of Insurance Industry – Photo Source: https://blog.agentero.com

The abbreviation for SWOT indicates the following:

  • S = Strengths
  • W = Weaknesses
  • O = Opportunities
  • T = Threats

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A SWOT analysis in insurance industry can be explained using the following highlighted points:

a. Strengths

1. It clarifies the internal and external factors

It clarifies the internal and external factors like strengths, weaknesses, accessible opportunities, and possible threats in external business settings.

2. Exploits

It illustrates how the insurance industry can make exploit using its strengths to create valuable opportunities, and make a more reasonable effort to improve on its weaknesses to shun any expected threat.

3. Achievement

It helps to guide the company so that the company can achieve its aim and create a more reconstructive organization.

4. New product

This analysis helps the company to be more ideal in the selection of new products or the introduction of services by taking the critical analysis of the strengths, weaknesses, opportunities, and threats of changing the process.

After this analysis has been done, the company can focus on the key factors. For example, a product may look amazing but when proper SWOT analysis is carried out, it will be indicated if the product is instead productive or profitable.

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5. Improvement

In the insurance industry, this analysis helps in improving major elements by appointing independent insurance agents for personalized service.

6. A solid business-standard

When the analysis is effectively used in the insurance industry, it can be described as a base for a solid business-standard.

  7. An exclusive expertise

It is the process that distinguishes an insurance company from others by giving them unique knowledge on how to run and manage the insurance business.

8. Convenience

A rationale for any customers to agree to pick a greater corporation is the level of convenience. This analysis is a tool that makes customers still operate from the comfort of their homes using technological platforms like phone calls, emails, and customer care services, among others.

b. Weaknesses

9. Overawed staff

The SWOT analysis helps the insurance business to easily identify an overawed staff and probably lay them off the insurance especially when the staff is unable to think, speak, or behave normally because of a strong feeling of respect and fear.

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10. Unproductive procedures

Incompetent procedures that lead to high overhead costs can also be understood using the SWOT analysis. When the cost of production is extremely high, it leads to unproductivity and vice versa.

11. Weak marketing and outreach systems

When there are weak marketing and outreach methods, the results resulting from this system will indicate a decline in the profit or growth of the insurance business.

c. Opportunities

The opportunities that best explain the analysis are as follows:

12. Innovative technology

The SWOT analysis creates an accessible and innovative technology by using current technological forms to meet customers’ services and satisfy their expectations.

3. Developing client needs

Every client has several and many needs and these needs can be numerous. The insurance industry makes use of this analysis to devise means to satisfy the needs of the client.

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d. Threats

Other threats include:

14. Local competitors

In the insurance industry, every business is surrounded by other domestic or local competitors which can be quite challenging but an understanding of the SWOT analysis helps the insurance industry to maintain its standards, and remain on top amid other competitors.

15. Increase in insurance rates

A higher insurance rate can discourage customers but intend to increase the profit of the insurance industry and a lower interest rate can encourage customers but decreases the profit of the insurance industry. The industry needs to underhand this threat to be able to still maintain customers and yet make huge profits.

16. Rising unemployment

The SWOT analysis reveals the weak marketing and outreach systems of various staff and when there are immediately laid off the industry, intensifies the unemployment rate.

Also, an introduction of technology can automatically replace the service of numerous staff, rising the unemployment rate.


The idea of SWOT analysis is very important to any insurance industry and helps the industry to critically focus on key areas of growth.

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As such demands a comprehensive or inclusive understanding of the industry’s strengths, weaknesses, accessible opportunities, and possible threats to keep customers loyal to the insurance industry.

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