Aviva Life Insurance (Aviva India) is a joint venture between Dabur Invest Corp and Aviva plc, a British assurance company. In 2016, Aviva plc increased its share in the company from 26 percent to 49 percent after the change in FDI regulations in the insurance sector.
Aviva Life Insurance is a key player in the sector offering quality products and efficient service. The company is one of the first to introduce modern unit linked and utilised with profit plans. Aviva India is also involved with the education of underprivileged children, continuing its global initiative Street to School program.
Strengths in the SWOT Analysis of Aviva Life Insurance :
Strong product Portfolio: Aviva Life Insurance has a strong and diverse product portfolio. The company has various life insurance and benefits schemes for different segments and target groups. This allows the company to have a larger base of customer and increases its market share.
Effective Marketing Strategy: Aviva Life Insurance has an effective marketing strategy and has the best marketing campaigns in the industry. The company was awarded the “Most Effective Marketing Campaign of the year” at the 2014 DMAI Awards.
Strong Sales Force and Wide distribution network: The company has a strong sales force of 12000 plus Financial Planning Advisors. Also, it has a wide distribution network with 108 branches spread across the nation. This gives the company a competitive advantage over other private companies.
Focus on Social Schemes: Aviva Life Insurance has been a strong supporter of child care and has endeavoured to help underprivileged children through education. It leads the market in protection and child plans with various world-class products.
Weakness in the SWOT Analysis of Aviva Life Insurance :
Controversial advertisement affects the brand image: Aviva Life Insurance has also faced its share of controversies when it came out with an advertisement of “After-Death” experience of a man. This created an emotional outburst from the audience who felt disturbed watching the advert.
Customer complaints: The company receives various complaints throughout the year regarding the execution of its policies. Many customers have also complained that it takes a long time for the complaints to get resolved. This also hurts the brand image of the company.
Opportunity in the SWOT Analysis of Aviva Life Insurance :
Growing Rural market: With increasing awareness about insurance policies and plans in the rural part of the country, the rural market is growing and it is an opportunity to expand its customer base and increase market share.
The increase in incomes of the middle class: The median incomes of the middle class in India are increasing and thus more and more people are looking to invest in insurance policies and thus it is an opportunity for the company.
Strong growth: The Indian market is growing and the percentage of earning population is also rising. This makes India a high potential market for insurance schemes as people are looking for options for investment.
Threat in the SWOT Analysis of Aviva Life Insurance :
Intense Competition: Aviva faces competition from companies like Bajaj Allianz, HDFC Life Insurance etc. who also have a strong sales force and are looking to capture the market.
FDI in Insurance: In 2016, the government increased the FDI in insurance sector to 49% from 26%. This allows various large and small companies to tie-up with companies from abroad. This increases competition in the market.
Economic Crisis: In the case of any economic crisis, the chances of people disinvesting increases. For instance, in Eurozone crisis, the banking sector and insurance sector were strongly affected.
