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Comprehensive SWOT Analysis of Max Financial Services – India’s Largest Non-bank, Private Life Insurance Company

by | Case Studies | 0 comments

In our previous blog, we did a comprehensive study on the SWOT Analysis of the largest broadband communication company in the United States, Spectrum. Here we will understand the SWOT Analysis of Max Financial Services.

Max Financial Services Limited (MFS), a piece of the Max Group, is the holding organisation for Max Life, India’s biggest non-bank, private life insurance organisation. Max Financial Services Limited has been recorded on the Bombay Stock Exchange as well as the National Stock Exchange. The organisation’s financial backer base incorporates marquee worldwide monetary foundations, for example, KKR, Baron, Wardship, New York Life, Vanguard, Blackrock, Jupiter, Norges, Neuberger Burman, Eastspring, and Dimension.

Another aspect that made Max Financial Services the massive it is now, is its marketing efforts. As the world goes online, marketing is changing and if you are curious in learning about the latest – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

In this case study, we will learn about the SWOT analysis of Max Financial Services. But first, let us know about the company and the product better.

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About Max Financial Services

SWOT Analysis of Max Financial Services

Max Financial Services possesses and effectively deals with a greater part stake in Max Life Insurance Company Limited, making it India’s initially recorded organisation zeroed in solely on life coverage. Max Life is a joint endeavour with Mitsui Sumitomo Insurance (MSI), a Japan-settled worldwide innovator in extra security.

The reinforcements of Max India as a public holding organisation were laid out in 1984 at Railmajra, Punjab by their founder Mr Analjit Singh, then, at that point, a sprouting business visionary. In the almost thirty years since its initiation, Max India ceaselessly developed and advanced, changing from an unadulterated assembling organisation to a Rs 17,000 crore aggregate working in ‘organisations of life’, with a container India presence.

Max Life is India’s fourth-biggest private disaster protection organisation. It has arisen as a benchmark for the life coverage industry in India across a few aspects including client persistency, elite execution bancassurance and organisation channels, lucky associations with dispersion accomplices, solid and tenured administration, centre around the long haul reserve funds and assurance items, and predominant administration of expenses.

Quick Stats on Max Financial Services
Founder Mr Analjit Singh
Year Founded 1988
Origin New Delhi, India
No. of Employees 27,000+
Company Type Public
Market Cap Rs 26,145.90 Crore (2022)
Annual Revenue Rs 6.95T Crore (2021)
Net Income/ Profit Rs 74.86 Crore (2021)

 

SWOT Analysis of Max Financial Services

 

Products & Services by Max Financial Services

Max Financial Services has been financial industry for more than a century, and so it provides plans & services in:-

  • Max Life Insurance
  • Financial Services


Competitors of Max Financial Services

Max Financial Services competes with many other life insurance companies. The top 5 competitors of Max are –

  • IWML
  • Fino Payments
  • Sundaram
  • Delphi World
  • Crest Ventures


Now, we have a clear picture of the company’s core business. Let’s talk about the SWOT Analysis of Max Financial Services.


SWOT Analysis of Max Financial Services 

SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like Max Financial Services to compare its business and performance to that of its competitors.

It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of Max Financial Services.

To better understand the SWOT analysis of Max Financial Services, refer to the infographics below:

SWOT Analysis of Max Financial Services - SWOT Infographics of Max Financial Services

Below is an explicit guide to the SWOT analysis of Max Financial Services.

Strengths of Max Financial Services

Max Financial Services, being one of the leading companies in its industry, has several benefits that help it flourish in the marketplace. These strengths not only help it retain market share in existing areas but also help it break into new ones.

  • Reputation & Brand Name: Max Financial Services is the most well-established firm in its industry. It is the world’s largest insurance company which serves Japan, North America, Europe and Asian nations.
  • Focus on Social Schemes: Max Financial Services Life Insurance has long been a supporter of global health plans typically including medical, dental, behavioural and disability. With a variety of world-class services, it leads the industry in health protection and dental plans.
  • 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.
  • Affordable Insurance: Max Financial Services insurance company is the market leader and serves the people in Europe with insurance that is low in rates but with superior benefits.
  • Financial Position: Max Financial Services 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: Max Financial Services has gained the 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 Max Financial Services

Weaknesses are the areas Max Financial Services can work upon. Some of Max Financial Services’ weaknesses are

  • Research & Development: Max Financial Services 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 Max Financial Services making it difficult for outsiders to adjust and hence resulting in the loss of talent.
  • Low Market Share: Although the company has a significant presence in Japan and across international nations, the insurance company is not known to many people due to the company’s low share in the market.
  • Customer Service: Given it is the largest healthcare company it is only natural to have so many customers and in some areas, the company fails to provide customer satisfaction.
  • Delayed Claims: Many states reported the authority of delayed claims payments to policyholders and increasing policy cancellations. 


Opportunities for Max Financial Services
 

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 Max Financial Services are

  • Possibilities in the Online World: Clients’ increasing acceptance of online services will allow Max Financial Services 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 Max Financial Services can make use of its social media handles to promote its products, interact with customers and even provide after-sale services.

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  • 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 personalised 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 Max Financial Services

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

  • Gig Economy: Most organised 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: Since insurance was privatised, Max Financial Services has lost its lustre and now confronts intense competition from private insurance businesses that have given the industry a new lease on life.
  • 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 elaborated SWOT analysis of Max Financial Services. Let us conclude our learning below.

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To Conclude

Max Financial Services is a well-known insurance brand with a significant global presence. In the SWOT analysis of Max Financial Services, 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 Max Financial Services 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 Max Financial Services 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 Max Financial Services, 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 Max Financial Services 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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