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Complete SWOT Analysis of Aflac – An American Insurance Company

by | Case Studies | 0 comments

Previously we saw the SWOT analysis of Metlife, today let’s look at the SWOT analysis of Aflac.

Aflac is a multinational company that specializes in insurance and financial services. The company is known due to its effective services and marketing strategies. Digital marketing is the new way of marketing especially now when everything is moving online. If you want to learn more about digital marketing, do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.

In this blog, we will look at the SWOT analysis of Aflac but before that let’s know some facts about the company.

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About Aflac

SWOT Analysis of Aflac - Aflac

Aflac – American Family Life Assurance Company is a US-based insurance company that has been providing its service to millions across America since 1955 and has been one of the leading providers in the insurance sector. The employees have put a special emphasis on the recovery by providing guaranteed-renewable insurance and protecting their client’s financial resources.

For the tenth consecutive year, Ethisphere magazine named Aflac to its list of the World’s Most Ethical Companies. Aflac was also recognised 85th in Fortune magazine’s list of the 100 Best Companies to Work for in 2018, ranked 58th among America’s best companies. Aflac has reached the list for the 20th year in a row, making it the only insurance business to do so.

Quick Stats on Aflac
Founder John Amos, Paul Amos & Bill Amos
Year Founded 1955
Origin The United States
No. of Employees 11,729+
Company Type Public
Market Cap $39.44 Billion (2022)
Annual Revenue $22.106 Billion (2021)
Net Income/ Profit $4.325 Billion (2020)

 

SWOT Analysis of Aflac - Aflac Introduce its Dental & Vision Insurance


Products & Services by Aflac

  • Supplemental health & life insurance
  • Accident Insurance
  • Dental Insurance
  • Vision Insurance
  • Short-term Disability Insurance


Competitors of Aflac

Aflac competes on a global level with many other Healthcare Insurance Companies. The top 5 competitors of Aflac are:

  • Liberty Mutual Insurance
  • Humana
  • Allstate
  • State Farm Insurance
  • Aetna


Now that we understand the company’s core business, let’s delve into the SWOT analysis of Aflac.


SWOT Analysis of Aflac

A SWOT analysis determines the strengths, weaknesses, opportunities, and threats of an employer. It is a confirmed control paradigm that permits Aflac to benchmark its enterprise and overall performance towards that of its competition and the enterprise as a whole.

This is a tremendous device for figuring out in which the enterprise is doing well, in which it’s miles failing, growing countermeasures, and figuring out how the enterprise can grow.

To higher apprehend the SWOT Analysis of Aflac, check with the infographics photo below

SWOT Analysis of Aflac - SWOT Infographics of Aflac

Now first let’s start with the strengths of the employer from the SWOT analysis of Aflac.

Strengths of Aflac 

  • Tried & Trusted: Aflac has been in the game for almost 70 years, making it one of the most trusted companies in the insurance sector. It has been consistent in providing quality services to its diverse clientele across America and Latin America. 
  • Worldwide Presence: Aflac has a presence in the United States and Japan and has its worldwide headquarters and corporate offices. Till now, the company insured more than 50 million people worldwide.
  • Highly Skilled Workforce: Successful training and learning programmes have resulted in a highly competent workforce. They are not just highly skilled but also driven to achieve greater success.
  • Awards & Recognitions: For the tenth consecutive year, Ethisphere magazine named Aflac to its list of the World’s Most Ethical Companies. Aflac was also recognised in Fortune magazine’s list of the 100 Best Companies to Work for in 2018, ranked 58th among America’s best companies. 
  • Affordable Insurance: Aflac insurance company is the market leader and serves the people in the United States with insurance that is low in rates but with superior benefits.
  • Financial Position: Aflac has a very strong financial position in the market with consecutive profits over the years along with accumulated profit reserves which can be utilised for future expenditures or marketing activities.
  • High Level of Customer Satisfaction: Aflac has gained trust of more than a million clients and has a very strong customer relationship management team through which they keep their current customers very satisfied and also enjoy a good brand equity status among potential customers.
  • Strong Supplier Community: It has built a culture among suppliers where the suppliers not only promote the company’s services but also invest in training the consulting team to explain to the client how he/she can extract the maximum benefits out of the insurance services.


Weaknesses of Aflac

Weaknesses are the areas Aflac can work upon. Some of Aflac’s weaknesses are:

  • Research & Development: Aflac has a good share of expenditure on the research and development department but it is spending way less than a few of the players within the industry which have benefitted as a result of their innovative products.
  • Diversity in the Workforce: The local workers contribute to the majority of the workforce at Aflac making it difficult for outsiders to adjust and hence resulting in the loss of talent.
  • Need for Investment in Technology: Aflac does not spend much on new technologies. Given the scope of the company’s expansion and the various locations into which it aspires to expand, Aflac must invest more in technology to integrate processes.
  • Low Market Share: Although the company has a significant presence in the United States and Japan, the insurance company is not known to many people due to the company’s low share in the international market.


Opportunities for Aflac
 

Opportunities are uncontrollable external circumstances that a person may be able to take advantage of. These external factors could give the company an advantage in the marketplace. Opportunities for Aflac are:

  • Possibilities in the Online World: Clients’ increasing acceptance of online services will allow Aflac Group to offer innovative services to customers in the Insurance (Life) market.
  • Social Media: Over the years the number of active users on social media channels has increased and with this Aflac can make use of its social media handles to promote its products, interact with customers and even provide after-sale services.

You can also leverage the benefits of social media and other digital marketing channels to your business by simply learning several digital marketing skills from a renowned institute just like IIDE where experts from the digital industry teach the latest and upgraded digital marketing skills through online live and recorded sessions right to you whilst you are seated at your home. 

  • Future of Insurance Company: Global life premium insurance growth is predicted to rebound to 3% with increased risk awareness owing to COVID-19 and global economic recovery set to accelerate the demand for life insurance products. 
  • Future Trends: The next 10 years will see the insurance industry moving from traditional to more customer-centric products. In the post-pandemic era, due to personalized services, the products are given based on information collected from external sources and devices.
  • Shift From Protection To Prevention: There is a general trend toward risk prevention rather than risk mitigation, which indicates that insurance companies should concentrate on risk prevention rather than risk mitigation.


Threats to Aflac

Threats are those factors that have the potential to provide harm to the organisation in any form. The threats of Aflac are as follows:

  • Gig Economy: Most organized companies across the world offer group insurance. Various online-based and reputed companies like Fiverr, Amazon Mechanical Turk, and others have entered the ‘freelancer’ population who work without any formal company allegiance. This has resulted in an enormous loss for the insurance companies.
  • Competition: With the growth of potential competitors in the market of Cigna, Humana, some clients may incline towards other companies which would create obstruction in growth.
  • Changes in Government: Because fiscal and monetary factors vary with each new government, tactics must be altered correspondingly. This results in a slew of issues.


This ends our complete SWOT analysis of Aflac. Let us conclude our learning below.

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To Conclude

Aflac is a well-known insurance brand with a significant global presence. In the SWOT analysis of Aflac, we observed that the company is heavily reliant and enjoys strong brand recognition and trust with its customers. It has a strong distribution network and has reached across all the markets it serves, but suffers from an increasing number of suppliers in the same space and better R&D efforts by its competitors.

Also, one point not to miss out on is that Aflac is in line with its marketing effort. It has created a customer base for itself by tapping into the digital era and creating a social media presence on several platforms. If you are interested in learning digital marketing, don’t forget to check out IIDE’s 3 Month Advanced Digital Marketing Course.

We hope this blog on the SWOT Analysis of Aflac has given you a good insight into the company’s strengths, weaknesses, opportunities and threats. 

If you enjoy in-depth company research just like the SWOT analysis of Aflac, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Aflac in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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