Make a swot analysis for mutual cooperative/participation insurance The strenghts listed 5 points The weaknesses listed 5 points Threats listed 5 points The opportunaties listed 5 points

SWOT Analysis for Mutual Cooperative / Participation Insurance

The insurance is of two types participation insurance and non- participation insurance. A Participation Insurance is a type of insurance contract policy which pays dividend to the policy holders. These dividends are paid to the policy holders annually upto the end of policy period. The dividends are earned through profit from selling the policy by insurance company. The Participation Insurance policies are generally life insurance contracts. Higher premium is charged by insurance companies in this type of insurance contract.

Following are the SWOT analysis of Participation Insurance.

Strengths :

• Higher Premium Rates
• More variety of insurance products
• High services from brokers
• Complete customer insight
• Growth in business
• Increase in middle income group for profitable market

Weakness :

• More cost on switching of customers from a competing industry
• Very slow in responding to changing needs of customers
• Dominance of public sector industries
• Financial weakness among the insurance industry
• Struggling for technological adaptation

Opportunities :

• Participating in various growing industries
• Ability in cross selling financial services
• Availability of Paperless transactions
• Increasing need of insurance consultants among clients
• Generating income through client consultations

Threats :

• Competition from brokers, agents and other market providers
• Economic decline in the country
• Threats of major substitutes
• New customers are unwilling to have insurance policy due to increasing cost
• Government regulations on profit margin declaration