HDFC and Standard Life has a collaboration and established a joint venture with the aim to enter the Indian insurance market. The joint venture started in the year 1995. The joint venture got established owing to the fact that both the companies shared the same value and beliefs which has resulted in a long lasted relationship of more than 20 years now.
About HDFC Life Insurance
- Type: Life insurance company
- Industry: Financial services
- Founded: August 14, 2000
- Founders: Housing Development Finance Corporation (HDFC) and Standard Life
- Headquarters: Mumbai, India
- Area served: India
- Current CEO: Vibha Padalkar
- Number of employees: 10,000+
- Major products: Term insurance, Endowment plans, Whole life plans, Money back plans, Pension plans, Health insurance plans
Table of Contents
Strengths in the SWOT analysis of HDFC Life Insurance :
This helps in understanding the core areas of the business where it beats the competition and has the competitive advantage in the market. The business should use its strength to create differentiation in the market. Strengths are generally the core competency of the business.
- Customized Packages – The business offers its customers with customized insurance plans based on the needs of the customer. This is an interesting feature because everyone needs an insurance plan according to their requirements and offering that clearly creates a differentiating factor in the market.
- Brand Image – HDFC life insurance has a very well established domestic image in the Indian market. Supported by the international image of Standard Life insurance which further ads up to the credibility of the brand.
- Well established Networks – The business has a well-established network in the country who further sells the policies to customers. It has a network of over 500 branches in over 700 cities.
- The base is Strong – HDFC insurance has a very strong base in capital and reserve.
- Customer Service is Best in the market – The customer service offered by the business is exceptionally good and hence it helps in building brand reputation
Weaknesses in the SWOT analysis of HDFC Life Insurance :
This is the pain area of the organization where it does not have the resources or skills. Business has to work upon these areas so that they are not left behind from the competition. Though there will be some or the other weakness it should not be an area which takes the business pout off the market
- High Cost of operations – The business involves high administration cost and management expenses. As selling needs some investment and hence there is a continuous cash flow going out in order to do business development.
- Retention of the network is poor – Thought the business has a well-established network but there is a high churn in the network and hence it further adds to the cost of operations.
Opportunities in the SWOT analysis of HDFC Life Insurance :
This helps in understanding what other things a business can do with the current skills and resources. It helps the business to know the areas where it can expand and take a lead in order to diversify the business and expand the customer base
- Population – the population of India is increasing at a rapid pace and also the insurable population is too high and not yet covered completely and hence there is a huge potential for the business in Indian market.
- Liberalization in Laws – The liberalization of the insurance laws in India will help the business to further expand the new avenues which were earlier restricted due to the stringent policies and laws of the insurance sector.
Threats in the SWOT analysis of HDFC Life Insurance :
This analysis helps in understanding what are the areas which can impact the business in future or right away. So business has to prepare itself to handle the threats in the market landscape. Competition or increasing number of players in the market with same value proposition is a threat to business as it directly lowers down the customer base and revenue.
- Instability in Economy – There is a high instability in the economy which impacts the business to great extent. Global crisis inhibits people from investing in such policies as the guarantee of getting the returns or even the principal amount is not known
- NBFC’s Entry in the industry – There is a high competition in the market owing to the fact that many new players are entering the market and biggest threat is from NBFC’s
- Movement of Employees – The industry experiences high churn ratio and hence the employees who are successful in the industry keeps on moving from one company to another which puts a lot of pressure on hiring and also the candidates who are driven for sales and increasing the business in terms of new insurances issued for the brand.
Liked this post? Check out the complete series on SWOT