Last time we studied the SWOT analysis of La Poste which is the postal and express courier services industry in France. This time around, let us dive into the detailed study or SWOT analysis on Zurich Insurance. Let’s get started.
Started as a small mutual insurance company in Switzerland to establish itself as the world’s leader for insurance – Zurich Insurance company now deals in protecting various entities including people, properties, assets and many more.
Zurich Insurance company is present in almost every nation which is only possible by constantly upskilling in marketing games and staying relevant to the industry. Zurich Insurance ads are known mainly for their creativity and marketing efforts. So if you are interested in learning the latest marketing efforts which are digital marketing – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Before we go into the SWOT Analysis of Zurich Insurance, let us know about Zurich Insurance as a company.
About Zurich Insurance,
The insurance company was incorporated 150 years ago when it started as a transport insurance company named “Schweiz” transport insurance and reinsurance company under the name of “Versicherungs-Verein” company.
Today Zurich Insurance is the country’s largest insurer. The group is organised into three core business segments: General Insurance, Global Life and Farmers. Total employees at the insurance company are more than 55,000, with customers in 215 countries and territories.
Zurich Insurance provides a wide range of property and casualty, life insurance products and services in more than 210 countries and territories. Zurich Insurance’s customers include individuals, small businesses, mid-sized and large companies, as well as multinational corporations.
|Origin||Zurich Insurance, Switzerland|
|No. of Employees||55,000|
|Market Cap||$70.40 Billion (2022)|
|Annual Revenue||$71.792 Billion (2019)|
|Net Income/ Profit||$4.147 Bilion (2019)|
Products of Zurich Insurance
There is so much more to this insurance company and what it has to offer to its customers than its intelligent and lovable spokesperson. The company also offers a wide variety of affordable insurance products and Zurich Insurance mobile and web apps. It deals with:
- Property and casualty insurance
- Investment management
Competitors of Zurich Insurance
Zurich Insurance’s top five major competitors are
- AXA US
Now, we have a clear picture of the company’s core business. Let’s talk about the SWOT Analysis of Zurich Insurance.
SWOT Analysis of Zurich Insurance
A 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 Zurich Insurance 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 Zurich Insurance.
To better understand the SWOT analysis of Zurich Insurance, refer to the infographics below:
Below is an explicit guide to the SWOT analysis of Zurich Insurance.
Strengths of Zurich Insurance
Zurich Insurance, 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.
- Leading in its Segment: The most powerful transnational corporation in terms of corporate control over global financial stability. Also, the list of leading insurance companies itself is one of the biggest strengths of Zurich Insurance.
- Global Presence: Zurich Insurance has worldwide recognition in more than 210 countries because of its strong work performance and reputed brand name that it has gained over the years.
- Affordable Insurance: Zurich Insurance company is the market leader and serves the people in Switzerland with insurance products that are low in rates but of superior quality.
- Financial Position: Zurich Insurance 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: Zurich Insurance 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.
Weaknesses of Zurich Insurance
The weaknesses are a major drawback that stops the organisation from performing at its optimum level. They are the areas in which businesses can make improvements. The major drawbacks are as follows:
- Research and Development: Zurich Insurance 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 Zurich Insurance making it difficult for outsiders to adjust and hence resulting in the loss of talent.
- High Employee Turnover Rates: Zurich Insurance has a very high employee turnover rate as compared to its competitors which means it spends a lot on training activities as employees keep leaving and joining.
- Low Interest: Low-interest rate structure in Hong Kong decreases the profitability of people buying insurance from Zurich Insurance.
- Low Investments in Customer-oriented Services: Low investments in Zurich Insurance Group’s customer-oriented services rivals may acquire an edge shortly. The Zurich Insurance Group must enhance its research and development spending, particularly on customer service-oriented apps.
Opportunities for Zurich Insurance
Opportunities are the favourable external factors that may give the organisation a competitive advantage over others. The opportunities for Zurich Insurance are as follows:
- Possibilities in the Online World: Clients’ increasing acceptance of online services will allow Zurich Insurance 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 Zurich Insurance 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.
- Transport Industry: The transport industry has been booming and is expected to boom in the next few years as well which has resulted in more auto insurance which is helpful for Zurich Insurance to scale its business.
Threats to Zurich Insurance
Threats are those factors that have the potential to provide harm to the organisation in any form. The threats to Zurich Insurance are as follows:
- Technological Advancements: The technological advancements by a few competitors can pose a threat to Zurich Insurance as today’s customers are more attracted to new technological advancements and may be lost to competitors’ offerings thus reducing the market share of Zurich Insurance.
- Competition: There is always an ongoing competition that puts downward pressure on the prices. This could lead to lower profits if it makes changes in the price or may also result in lower market share if it doesn’t make price changes.
- Fluctuating Interest Rates: The interest rates keep on fluctuating and don’t provide a stable financial and economic environment.
- Exchange Rate: The exchange rate also keeps fluctuating and makes it difficult for a company like Zurich Insurance because it extends service internationally while its suppliers are local.
- 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.
This ends our complete SWOT analysis of Zurich Insurance. Let us conclude our learning below.
Zurich Insurance is a well-known insurance brand with a significant global presence. In the SWOT analysis of Zurich Insurance, 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 Zurich Insurance 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 Online Digital Marketing Course.
We hope this blog on the SWOT Analysis of Zurich Insurance has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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