Final Industry Analysis Paper

Insurance companies need to prove that their

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Insurance companies need to prove that their companies are stable because the U.S. economy is on the rise. Scrutiny of Data Access Some insurance companies are having security breaches in their information systems. Companies need to create a comprehensive privacy & data protection plan They should develop, 19
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memorialize & implement a comprehensive information security strategy that addresses internal & external access. SWOT Analysis of the Top Three Companies MetLife Inc. STRENGTHS Leading position in U.S. Insurance market Strong distribution network Comprehensive range of products WEAKNESSES Weak international presence US subprime mortgage exposure Bad communication OPPORTUNITIES Growth opportunities in emerging markets Growing retirement market Current acquisitions likely to drive future growth Innovation THREATS Growing natural catastrophes Slowing U.S. Economy Consolidation in the US. Insurance industry Competition Prudential STRENGTHS One of the leaders in financial services Complementary yet diversified business Financial strength rating WEAKNESSES High combined ratio Exposure to subprime mortgage Litigations OPPORTUNITIES Expansion into India Increasing demand for pension and retirement products Growing US life insurance and pension market THREATS Regulations on contingent commission Volatility in financial markets Insurance frauds Aflac 20
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STRENGTHS Leader in market share Pricing Philanthropy Strong brand equity Strong advertisement Loyal customers WEAKNESSES Litigation OPPORTUNITIES New acquisitions Emerging markets Expanding abroad Product & services expansion THREATS Competition Insurance frauds Outlook for the Insurance Industry: Short-term & Long-term Short-Term In the short-term, the Insurance Industry is struggling. There has been millions of layoffs and hiring freezes With each passing year, the industry gains strength at a slow but steady pace. Many states are tempted to raise their revenue by increasing taxes on insurance Long-Term The long-term outlook of the Insurance Industry is good . Technology will play a large role New advanced technologies will make it possible to improve insurance companies o Cloud Technology o It allows insurers to expand technology capabilities o It also lowers the entry cost for new insurers and keeps the cost low for existing users. 21
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The Financial Services Industry 22
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The Financial Services Industry incorporates a broad range of money management organizations. Some of these organizations include credit unions, banks, credit card companies, insurance companies, and investment funds. The financial services sector is one of the most scrutinized industries in the world because of the money involved in the industry and the wide spread greed by many financial services companies. As of now, there is much reform happening
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