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S W O T Analysis:
S W O T Analysis is the studied, tried, tested and applied system of analysis worldwide to know the STRENGHT, WEAKNESS, OPPORTUNITIES and THREAT of a business or industry.
Let's look at the SWOT Analysis of this START-UP;
STRENGHT: You will be associated with one of the Leading Life insurance company of the world. The brand image of LIC is huge and strong. LIC is a strong, gigantic, value based and State owned insurer i.e., Life Insurance Corporation of India. The corporation is known for it's trust. Corporations mission and policies are made to reach the insurance to evey Indian.
LIC Performance in Indian Insurance Industry last year:
First year premium Market Share No. of Policies Market Share
LIC of India 1,77,977 Crores 68.74% 2,19,25,106 75.90%
All 23 Private Companies 80,919 31.26% 69,61,463 24.10%
TOTAL 2,58,896 2,88,86,569
SOVEREIGN GUARANTEE: LIC has the sovereign guarantee of Govt. of India Under Section 37 of LIC Act 1956. The sum assured of all policies issued by LIC of India including any bonuses declared in respect thereof whetherr before of after the appointed day, shall be guaranteed as to payment in cash by the Central Government.
WEAKNESS:
Image of Insurance advisors in the market is not so good.
Convincing people and working with intangible product is difficult.
Failed advisors in the market will demotivate with negatives points of the profession.
It requires very dedicated and hard work during the initial days.
More people fail because they didn't update themselves with latest changes and not intend to learn new things.
Solution for this : The person who couldnot succeed to get the grapes will surely say that "Grapes are Sour". To be succeed in this unique profession, one should be ready to meet new people, mingle with them easily. One should ready to learn new things and adopt them in their career. Continuous learning will increase the income and chances of success. We use to sponsor to many trainings given by LIC as well as Leading Private institutes. To become an entrepreneur it really requires hard work during the initial days to establish themselves in the market.
OPPORTUNITY:
Insurance industry nationalised in the year 1956 and it is open for private companies from 2000, even though, till today only around 23% of indian population are insured with their individual life insurance policy. It means many more insurable indians are there to reach for insurance. And many of the insured people are not adequately covered as per their requirement.
Around 22 Lakhs of Insurance advisors are working for 135 Crore population. It means around 1 advisor for 8700 population. According to survey only 24% of existing advisors are working actively.
A huge potentiality is available in India for Life Insurance.
THREATS:
Competition: With privatization of insurance LIC has lost its older glory and today faces stiff competition from private insurance players who have brought in more glamour into the industry. (Since 2000 to now, total 23 private companies are working in india. Still LIC manage to be No.1 by acquiring around 70% of market share in Premium collection and around 76% in number of policies sold. Public trust with LIC is more strong.)
Change of governments: With every new government the fiscal and monetary policies change with the result that policies need to be reworked accordingly. This creates a lot of hassles.
Technology: Today most financial services make technology an integral; part of their business through online banking and financial broking services online. However, LIC still has a lot to achieve in terms of staying abreast with technology. (LIC is more upcoming with many technologies nowadays to be more customer friendly.)
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