Question

To what does the term “SWOT analysis” refer and how does that type of analysis help an insurance company?  

Answer 1

The SWOT analysis refers to the below:

The SWOT analysis is a process of balancing a company's strengths and opportunities while minimizing a company's weaknesses and threats.

The company strength and opportunities needs to be balance as that increases the company to sustain in the market for longer.

The company should minimize on the weakness and threats as that helps the company to be more competitive in the market.

The SWOT analysis help an insurance company as explained below:

Strength	Weakness	Opportunity	Threats
The policies is their major strength. Eg. The insurance company will provide different policies to their customer to increase their business in the market.	The main weakness is on the financial risks, as where the company might have a problem towards their budgets.	Different types of insurance plans can be introduced by the company	Competitors would be major threats to insurance company, as where the customer would switch.
The price plays a major role for the success of insurance company as where all kind of customer would be affordable to the package the insurance company allocate.	The legal issues might occur with the insurance company and that impact their business.	The types of cover plans can be different and so it attracts more customers.