Previously we saw the Marketing Strategies of Amway, this time we will look at the SWOT analysis of Metlife.
Metlife is an investment house for met life insurance company (MLIC) also known as MetLife. It’s one of the leading companies in its industries. It has maintained its position in the market by constantly upskilling its marketing game and staying relevant to the industry.
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Before understanding the swot analysis of MetLife let’s have a brief idea about the MetLife company.
About MetLife
MetLife was established in 1868, headquartered in Newyork. Metlife affiliates and subsidiaries provide a full range of insurance and other financial services to its individual and institutional customers. It offers a great deal of life insurance, employment benefit, annuities as well as group insurance, retirement, and saving products and services to around 90 million customers within 60 countries.
In 2011 that MetLife India launched a bank assurance partnership with Punjab National Bank (PNB), and in 2013, Punjab National Bank (PNB) earned a 30% stake in MetLife India Insurance Co Ltd, making it PNB MetLife India Insurance Company Limited.
Metlife has created a strong presence in various parts of the world like the USA, Asia, Japan, Latin America and the Middle East. through its organic growth, joint ventures and other partnerships. MetLife insurance product is organized into six-segment life insurance, retirement, corporate benefit, auto homeowner, international, and corporate.
Quick Stats about Metlife
| Founder | William P. Stewart |
|---|---|
| Year Founded | 1868 |
| Origin | New York |
| No. of Employees | 49000 (2019) |
| Company Type | Public |
| Market Cap | US$ 52.24 Billion (2021) |
| )Annual Revenue | US$ 67.8842 Billion (2020) |
| Net Income/ Profit | US$ 5.407 Billion(2020) |
Services provided by Metlife
Bank of Maharashtra provides services in the following areas:
- Insurance
- Annuities
- Employee Benefits
Competitors of Bank of Metlife
There are numerous players in the banking industry, the top 5 competitors are as follows:
- The Hartford Financial Service
- New York Life Insurance Company
- Mutual of Omaha Companies
- The Guardian Life Insurance Co
- Genworth Financial Inc.
SWOT Analysis of MetLife
The swot analysis helps the decision-maker to understand the company’s competitive position and devise a strategic plan accordingly. It helps to evaluate the MetLife company’s internal factors (strength/weakness) and the external factors (opportunities/threats) to predict the advantages and hazards of the company and on its basis assess the current and future potential.
1. Strengths of Metlife
- Global Presence – Metlife has worldwide recognition in various countries because of its strong work performance and reputed brand name that it has gained over the years.
- Technology – MetLife technology means reinvention. their process indulges with constant reimaging and delivers a new form of value to their customer, employees, business partners.
- Innovation – Metlife started pet first healthcare in 2020 asking employees to differentiate the pet parent experience 68 summer interns (rising university juniors and seniors) participated within the MetLife Technical University (MTU) program intern.
- Metlife Hackathons – In October 2020, MetLife held a company-wide hackathon for employees to crowdsource solutions to help the new accession become the top 1 provider of group pet insurance by 2025, through increased market share and customer tenacity.
2. Weaknesses of Metlife
- Research and Development – Albeit MetLife has done a couple of investments in the average research and development expenditure within the industry, it is spending way less than a few players within the industry that have had a big advantage as a result of their innovative products.
- Depends on the US Market – MetLife is highly dependent on the US market for a majority of yearly revenue. This reveals MetLife to financial problems if customers allow policies failure during times of economic difficulty.
- Product Differentiation – There is also little product differentiation within the insurance market so it’s tough to draw in customers who currently have policies unless moving to MetLife provides a cost-benefit or increased coverage in comparison to competitors.
3. Opportunities of Metlife
- 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.
- Health Insurance – Due to the rise in life expectancy increases and health trends change insurers play an important role in the health of their customers. By 2030, the number of individuals aged 60 and older will grow by quite 50%, from 900 million in 2015 to 1.4 billion.
4. Threats of Metlife
- 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.
- Young Generation as Customer- As the ‘freelancer’ population mostly consists of millennials and GenZ, who are not quite serious about insurance and think of it as something that can be planned later in life. Second, due to the absence of group insurance policy discounts, The insurer has to make more efforts to reach them.
- New Entrants – In recent years several new players are entering the market and are acquiring market share by gaining existing companies’ market share. This is a threat to MetLife because it can lose its customers to those new participants.
Conclusion
From the above SWOT analysis of MetLife, we understood that MetLife is trying to bring innovation and technological improvement to cater insurance and saving products to their customers through digitalization. Competition within the industry has increased in recent years which means MetLife needs to increase their spending and keep on updating its research and development to enable MetLife to better compete with the competition
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