CHAPTER-2

SWOT ANALYSIS

1.1 Strengths and Weaknesses of the Company

1.1.1 STRENGTH

Large pool of technically skilled manpower with in depth knowledge and

understanding of the market.

The company also provides innovative products to cater to different needs of

different customers.
Dedicated workforce aiming at making a long-term career in the field.
Strong and well spread network of qualified intermediaries and sales person.
Strong capital and surplus reserve.
Low management expenses and administrative costs.
IDBI Federal Life Insurance Company leverages on the strong distribution

network of its promoters and advisors.

Finance department helps the organization to keep a track on the administration
cost and all the other expenses

1.1.2 WEAKNESSES

Customer service staff needs training due to changing human behavior.

Product awareness is low in the market.

Management cover insufficient.

Sectored growth is constrained by low unemployment levels and competition for

staff.

Low customer confidence on the private players.

Centralization in the organization, management decisions are taken by top

authority which leads to significant delays in decisions.

A centralized administrative system gives way to inequity through the instigation

of excessive regulations or strict conformity to official norms which is redundant
or bureaucratic and that hinders decision-making and delays work.

1.2 Opportunities and Threats of the Company

1.2.1 OPPORTUNITIES

Insurable population: According to IRDA only 10% of the population is insured

which represent around 30% of the insurable population. This suggests more than
300m people, with the potential to buy insurance, remain uninsured.

International companies will help in building world class expertise in local market
by introducing the best global practice.

Could extend to overseas broadly.

New specialist applications.

Could seek better customer deals.

Fast-track career development opportunities on an industry-wide basis.

An applied research center to create opportunities for developing techniques to

provide added-value services.

There will be inflow of managerial and financial expertise from the worlds
leading insurance markets. Further the burden of educating consumers will also be
shared among many players.

1.2.2 THREATS

Big public sector insurance companies like Life Insurance Corporation (LIC) of
India, National Insurance Company Limited, Oriental Insurance Limited, New
India Assurance Company Limited and United India Insurance Company Limited.
People trust and go to them more.

Legislation could impact and Great risk involved.

Very high competition prevailing in the industry.

Vulnerable to reactive attack by major competitors

Lack of infrastructure in rural areas could constrain investment

People prefer short term investments rather than insurance.