Swot Analysis for Insurance Sector

Business Process Management

Market Data – Insurance sector

Insurance and risk management is a big global industry. In America the insurance business employs about 2.5 million people.

Life and health insurance in the United States will be about a $725 billion in gross revenues business in 2006, compared to only about $500 billion in 2002.

U.S. life insurance firms hold about $3.8 trillion in assets.

Personal lines comprise another vast sector of insurance. For example, private passenger automobile insurance will be about a $172 billion annual premium market in the U.S. for 2006.

Homeowners insurance is about a $50 billion market.

Property and Casualty insurance premiums will total about $450 billion in the U.S. for 2006.

Insurance Type

SWOT Analysis

Strengths

1. Patents

2. Insurance having currently good market

3. Premium rates are increasing and so are commissions

4. The variety of product is increasing

5. IT bringing new dimensions to insurance sector

Weaknesses

1. Insurance companies are often slow to changing needs

2. Buying insurance policy is a cumbersome process

3. Products are services are similar to competitors

Opportunities

1. Technology is improving paperless transactions are available

2. Busy life, customers need flexible and customizable policies

3. Like mobile banking mobile insurance could be a hit

4. New innovations in technology – measuring weather variables

Threats

1. Weather cycle

2. New substitute product emerging

3. Increasing expenses and lower product margin will hit hard on the smaller agencies and insurance companies

4. Government regulations on issues like health care and terrorism can quickly changes the direction of insurance