Question

SWOT analysis for Progressive's Commercial Insurance.

Answer 1

SWOT Analysis of Progressive Insurance:-

Strengths:-

1. Improved acceptance of the customers in the area of insurance is increasing the market share of the company.
2. The company has a very powerful and strong distribution network.
3. Improved customer satisfaction resulted from unique methods adopted to reach out to the target customers.

4. Very strong liquidity and capital position are the keys to company success

5. The company has a powerful employee base of over 25,000 employees

6. The company offers innovative insurances of cars, motorbikes, boats

7. The brand image of the company has been improved due to its sponsorship of different events.

Weakness:-

1. The company concentrates only of some geographical markets and a lot of controversies are also involved with the firm.
2. The profit margin is negatively affected by the operating expenses.

3. The company may find it difficult to compete with the major players.

Opportunities:-

1. The course of five-year NFIP reauthorization
   2. Australian non-life insurance market is growing market is improving
   3. The up-scales value chain is possible with the help of innovative technologies such as mobile technology.

Threats:-

1. The company has to fight with a lot of competition
2. There is a possibility if increased claim losses due to higher fraud insurance claims
3. The claim paying capability may be affected due to increased natural disasters.