SWOT analysis of Delta Life Insurance Co. Ltd. Essay Sample

Aim: A SWOT analysis must first start with specifying a coveted terminal province or aim. A SWOT analysis may be incorporated into the strategic planning theoretical account. An illustration of a strategic planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative Analysis ( SCAN ) . Strategic Planning. including SWOT and SCAN analysis. has been the topic of much research.

I was funny about the SWOT analysis of Delta Life Insurance Co. Ltd. I tried to place the cardinal internal and external factors that are of import to accomplishing the aim which is to happen out the concern chances. These come from within the company’s alone value concatenation. SWOT analysis groups cardinal pieces of information into two chief classs:

•Internal factors – The Strengths and Weaknesses internal to the organisation. – We use a “PRIMO-F” analysis to assist place factors.

•External factors – The Opportunities and Menaces presented by the external environment to the organisation. – We use a Plague or PESTLE analysis to assist place factors.

Company DETAILS

Delta Life Insurance Co. Ltd. established chiefly through the enterprise of a group of Bangladeshi professionals so working abroad along with a few enthusiastic local enterprisers. started its operation in December. 1986 after the Government of Bangladesh allowed the private sector to run in the insurance sector in 1984 to transport on the concern of insurance in the Private Sector. A brief account as to the growing of life insurance concern in Bangladesh is in order here. Bangladesh declared independency from the Pakistani regulations on March 26. 1971 following which she had to witness a bloody release battle with the business forces enduring for 9 months before they were defeated.

Insurance concern which was entirely carried on in private sector before independency was nationalized after release in 1972 chiefly to turn to the emerging state of affairs of gnawing public assurance in the industry that was left enormously short of resources in the face of immense losingss caused by the war of release. After a series of experimentation. a state-owned organic structure. viz. Jiban Bima Corporation ( JBC ) . established in May. 1973 for transacting the life insurance concern. took over the assets and liabilities under life portfolios of all former private insurance companies and started concern in its ain name. However. things did non better ; instead. in many respects became more aggravating and the Government so thought it better to let private sector engagement in insurance concern.

Since origin. Delta Life set before itself a high criterion of all unit of ammunition public presentation coextensive with professional soundness and proficiency. It shortly made a grade in the life insurance sphere by non merely being the leader among the private sector autochthonal companies. but by set abouting and successfully implementing advanced and public assistance oriented life insurance strategies.

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It introduced an array of conventional life and group insurance merchandises – many of which were the first in Bangladesh. For the first clip. wellness insurance merchandises were besides introduced by Delta Life. But more significantly. in fulfillment of the professed committedness towards societal development. Delta Life for the first clip non merely in Bangladesh but likely in the World. devised and introduced micro-life insurance-cum-savings merchandises specially suited to the demands and pockets of hapless people of the state who constitute more than 80 % of the people of Bangladesh.

Two undertakings of the company viz. Grameen Bima for the rural people and Gono Bima for the hapless and fringy rescuers of the urban countries were initiated to give themselves entirely to selling and direction of these advanced merchandises. We are happy to describe that we have achieved a good step of success although there is a long manner to travel.

These strategies that we have introduced have created great splash and enthusiasm among the general mass who. before these undertakings started working. could non even dream of having a policy that provides the much needed life insurance coverage along with installation of regular nest eggs on a long-run footing. At a ulterior phase i. e. in the twelvemonth 2002. the undertakings were merged into a division of Delta Life. viz. . Gono Grameen Bima Division. The GNGRB Division has been turning at a first rate of more than 25 % p. a. for the last twosome of the old ages and is poised to keep this growing rate at least in the following five old ages or so.

Delta Life can take pride in modeling the salvaging wonts of the lower and in-between category people and transforming them into prospective policyholders. The possible is now so strongly perceived that all life insurance companies – old and new alike – operating in the state have started their ain micro insurance merchandises.

The SWOT Analysis of Delta Life Insurance Co. Ltd. is described below: SWOT Analysis of Delta Life Insurance Co. Ltd. Bangladesh

•In Bangladesh. normally Microinsurance merchandises are offered by Life Insurance Companies.

•The Delta Life Insurance is the first private regulated insurance company in Bangladesh that entered in the Microinsurance in 1988. inspired by the turning success of the Grameen Bank and other Microcredit strategies in Bangladesh. Delta launched Microinsurance merchandise named Grameen Bima or small town insurance.

•With the enormous success of Delta Life Insurance. some private life insurance companies came frontward to offer Microinsurance merchandises to the hapless people. At present among the 18 Life Insurance Companies 13 companies are identified offering Microinsurance merchandises.

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Strength

Key FactorsDelta Life Insurance Company PerspectiveProduct

•Different simple term life insurance and life insurance merchandises with gift.

•Products are designed and packaged based on actuarial computation.

•Different premium rate based on clients age. amount insured sum. adulthood clip etc.

•Different adulthood clip.

•Products contain assorted benefits.

•Commitment to uninterrupted betterment.

Selling

•Different cliental groups i. e. moderate hapless. vulnerable non-poor and in-between category people.

•Concentrated concern attack.

•Country broad experienced and trained commissioned agent based selling.

•Reward system for committee agent.

Operationss •Structured underwriting procedure.

•Different premium aggregation processs ( monthly. quarterly. biannually. yearly. individual premium etc. ) .

•Innovative attacks.

•Efficient direction and professional staffs.

Accounting

•Proper certification and histories keeping.

•Some companies have automated insurance tracking system.

•Prepare fiscal statements on a regular basis.

•Invest gathered premium in authorities bonds and different fiscal instruments.

•Financial strengths.

Risk Management •Lower moral jeopardy due to standardized merchandises.

•Less inauspicious choice because of standard client choice format.

•Reinsurance to understate hazards.

Failing

Key FactorsDelta Life Insurance Company PerspectiveProduct •The merchandises are chiefly coming from supply side with less consideration on demand.

•Products features itself sometimes exclude some possible clients like the bottom hapless and moderate hapless.

•Less hazards coverage i. e. merely covers life hazards.

•Only life insurance merchandises are offering. no other merchandises like asset/ endeavor insurance. harvest insurance etc.

Selling

•No insurance instruction and consciousness for diverse cliental groups.

•Lack of standardized selling.

•Renewal rate is non satisfactory.

•Uneven growing of different policies.

•Lack of interconnectivity between caput office and bureaus.

Operationss

•Complex underwriting procedure.

•Premium sedimentation trouble.

•Procrastination of claim colony.

• Poor monitoring enhances abnormalities among the agents.

•Lack of coordination among different sections.

•Unfair concern patterns.

Accounting

•Poor insurance accounting cognition at agent office degree.

•Some companies don’t have automated system for tracking insurance.

•Poor Accounting and Management Information System at agent office degree.

• Inadequate tools to analyze public presentation of agent every bit good as each merchandise.

Hazard Management

•Possibility of moral jeopardy due to hapless monitoring of agents.

•The hazard of inauspicious choice is higher due to weak monitoring of agents.

•Some companies don’t have reinsurance installation.

•Some companies have liquidness hazards.

Opportunity

Key FactorsDelta Life Insurance Company PerspectiveProduct •Consider the demand and demand of mark market during merchandise designing and packaging.

•Design diverse merchandises for different client section.

Marketing •Large possible market.

•Demand for differentiated merchandises.

•Possibilities of horizontal and perpendicular enlargement as people are going witting about insurance.

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• Linkage with MFIs/NGOs.

•Lower involvement rate of banking sector encourages possible clients to buy insurance.

Operationss

•Reduce operational cost through linkage with MFIs/NGOs.

•Increase operational efficiency by supplying specific duty to agents and MFIs/NGOs.

•Develop operational manual by sing good patterns.

•Availability of professional staffs.

Accounting

•Enhance insurance accounting cognition at agent office degree through preparation.

•Develop machine-controlled system to track each insurance client.

•Develop Accounting and Management Information System at agent office degree.

•Develop effectual tools and describing system to analyze public presentation of agent every bit good as each merchandise.

Hazard Management

•Develop strong monitoring tools to cut down moral jeopardy and inauspicious choice.

•Sign MOU with Reinsurance companies and maintain modesty for reinsurance.

•Manage liquidness hazards through efficient portfolio direction and put premium sum in different fiscal instruments harmonizing to investing guidelines of Insurance Act.

•Government support.

Menace

Key FactorsDelta Life Insurance Company PerspectiveProduct •Difficult to plan merchandises by sing demands and demand.

•According to Insurance Regulation. life and non-life merchandises can’t be offered together by a individual entity.

•The merchandises may non be sustainable.

•Exclusion of big possible clients due to merchandise characteristics and packaging.

•Sometimes it takes long clip to acquire blessing of merchandise from Insurance Regulatory authorization.

Selling

•Market confusion and misconception about insurance.

•Market enlargement and incursion scheme may non be successful.

•Emergence of market rivals.

•Giant transnational insurance companies might come in in the market.

•Merger and acquisition.

Operationss

•Client’s involuntariness to buy insurance due to complex underwriting procedure.

•Higher non-renewal because of premium sedimentation trouble.

•Probability of losing possible market and credibleness due to cunctation of claim colony.

•Irregularities and embezzlement of agent will impact efficient operations.

•Inadequate support from MFIs/NGOs. if there is any Partner-Agent theoretical account operations.

Accounting

•Poor accounting cognition may promote fraudulent.

•Poor public presentation analysis of agent and single merchandise might impact the gross and sustainability.

Hazard Management

•More moral jeopardy and inauspicious choice will impact gross and sustainability.

•Political and environmental hazards.

•Lack of modesty for risks direction and header with liquidness hazards.

•No Reinsurance to get by with lay waste toing natural catastrophe or epidemic.

After Completing the SWOT Analysis. I found Delta Life Insurance Co. Ltd. a bright company which is really much popular to the clients and their Strengths and Opportunities are much stronger to contend with the Failings and Threats of the current state of affairs particularly within this recession clip of the World.

Bibliography

1. Internet2. The SMUCT Library3. Business Analysis – a projective work by Reazul Islam.