develop swot matrix of the following data (strength, weakness, opportunity and threat) Opportunity
· Promising peace and stability in the country
· foreign investors inviting policy
· introduction of new compulsory and regulatory insurance schemes
· risk based insurance management
· increase in paid-up capital
· Growth of Foreign Direct Investment (FDI).
· Rural and micro insurance will flourish
· The prevailing free market economy
· Expansion of infrastructural developments.
· Establishment of Industrial village.
· Privatization of state-owned Industries
· national growth and transformation plan (GTP)
· encouraging growth of financial sector
· small scale manufacturing improved and industrialization policy
· Establishment of domestic reinsurance company
· Expansion of private investment.
· International Financial Reporting Standards(IFRS) compulsory declaration
· population growth
· Increasing demand and awareness of the public for insurance service
· awareness about traffic accidents
· great contribution of social media
· composition of Board of Directors from different discipline and experience
· existence of system, manuals and procedures
· prevalence of internal control system & its accountability to the Board
· existence of board sub-committees
o Existing of loyal potential major shareholders
o Smooth relation and collaboration and common understanding between Management and Board of Directors
· professionally competent senior and mid-level management
· performance evaluation for staff is in place
· Sound financial status
· Existence of Income generating entities
· Strong capital base
· Adequate human resources
· Having good logistics
· launching of the Information Technology project
· reasonable speed while settling claim,
· Working with reputable re insurers.
· having own building
· change in the life style of people
· Minimum premium set by National Bank for new entrants
· availability of insurance software
· Developed Information Technology infrastructure
· soil and water conservation work improved
· improvement of irrigation schemes
· Low natural calamities.
· extent of corruption increased despite the effort to reduce it
· unnecessary interventions of the government on the business sector
· loose on enforcement of directives.by the regulatory
· increasing interest of developed & middle East countries on horn of Africa (especially on Read Sea area)
· Accession towards World Trade Organization (WTO).
· shortage of foreign currency
· high inflation rate
· unfavorable trade balance (import > export)
· high investment cost of technology
· tight and strict domestic borrowing procedures
· entrants of new insurance companies
· continued unfair price competition in the insurance sector
· frequent devaluation of local currency
· Customers price sensitivity;
· Alarming growth of motor accidents
· Shortage of skilled & experienced personnel in the market
· Low standard of living
· weak purchasing power of the local currency
· beliefs and culture of the society towards insurance business
· Unfavorable directive of National Bank of Ethiopia(NBE)
· telecom service insufficiency
· beginning of online insurance service
· shortage of skilled and experienced Information Technology professionals
· power shortage
· Sophistication and high cost of information Technology software and infrastructure.
· draught in some areas
· deforestation continued
· urban pollution increased by car, factories for the rivers and lakes decrease in their water level
· Sometimes there are delays in the decision-making process.
· Risk management unit is not yet functional.
· lack of risk management unit and manual put in place
· Lack of aggressive market penetration
· Insufficient relationship with intermediaries.
· Absence of succession plan.
· Insufficient marketing and promotional activities.
· Weak Internal Control System.
· Absence of shared vision
· No clear strategic direction
· Limited synergy and team work
· poor performance management
· inconsistency in decision making
· unsatisfactory human and physical resource management practice
· unsatisfactory customer service delivery practices
· Poor portfolio mix.
· Lack of leadership
· Lack of Strong Management Information System
· lack of timely provision, allocation and disbursement of fund
· Uncompetitive Salary Scale & Benefit Scheme
· Poor budget expense control system
· weak Human Resource Management Facility
· staff competence depletion because of high turnover
· Lack of consistent staff training
· Shortage of skilled and dedicated man power
· poor office layout and space shortage in some work units
· improper utilization of vehicles
· Poor resource handling
· Poor inventory management
· functions not yet automated
· inadequate customer consultation service
· Narrow product/service line
· Very Low market share
· Low branches networking
· Inadequate branches expansion.
· low level of focus on innovation & new product development
· Poor underwriting practices
· Lack of appropriate authority limit
· Poor relationship with reputed Banks.
· Inability to attract expanded professional from the market
· Weak shock absorption.
· Company procedures and gridlines not properly adhered
· inefficient formal internal communication system
· No standard facilities & office lay out.
· relatively weak promotional work