MetLife SWOT Analysis [Update 2022] ❤️

MetLife SWOT Analysis 2022

SWOT analysis from MetLife analyzes the brand based on its strengths and weaknesses, as well as opportunities and threats.

In the analysis of MetLife’s SWOT Analysis, the strengths and weaknesses are internal factors, while the threats and opportunities are external aspects.

SWOT Analysis is an established management system that allows an organization such as MetLife to evaluate its performance and business in comparison to its rivals. MetLife is among the top names in the banking and financial services industry.

The table below provides what is the MetLife SWOT (Strengths Strengths, Weaknesses Opportunities, and Threats) as well as the most prominent MetLife competitors, and also the market it is targeting segmentation, positioning, and its Unique Selling Proposition.

About MetLife 

MetLife was established in  1868 and 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.

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)

Strengths In The SWOT Analysis Of MetLife

  • Worldwide Presence: Global Presence Metlife is recognized worldwide across the globe due to its impressive work efficiency and the reputed brand name has been gaining throughout the years.
  • Technologies Technology MetLife technology is a way to reinvent. Their process is constantly redesigning and provides a brand innovative value to their customers, employees, and business partners.
  • Innovative – Metlife began the pet’s first healthcare program in 2020 and asked employees to distinguish the experience of pet parents. 68 summer interns (rising senior and junior university students) were part of MTU’s MetLife Technical University (MTU) program as interns.
  • Metlife Hackathons in October of 2020 MetLife organized a massive hackathon that allowed employees to collaborate on solutions that would help the new entry become the leading insurer of pet insurance for groups in 2025 through an increase in market share and customer loyalty.

Weaknesses In The SWOT Analysis Of MetLife

  • Research and Development –Albeit MetLife has made some investments in the typical development and research costs within the sector, it’s investing less than some players in the market that have enjoyed a huge advantage because of their unique products.
  • is dependent on US Market –MetLife is heavily dependent upon the US market to generate a large portion of its annual revenue. This exposes MetLife to be in financial trouble when customers let policies fail in times of economic hardship.
  • Product Differentiation There’s also a lack of distinction between products in the insurance industry, making it difficult to attract customers with existing policies unless switching to MetLife is a cost-saving option or increased coverage compared to rivals.

Opportunities In The SWOT Analysis Of MetLife

  • Future of the Insurance industry: Global life premium insurance growth is predicted to increase to 3% due to increased awareness of risk due to COVID-19 as well as the global economic recovery that is expected to increase the demand for life insurance. The pace of global economic recovery will affect the future outlook of the insurance market across all regions. Although life insurance is expected to increase by 8.5 percent in non-life products and double-digit growth is anticipated between 2021-2022. The next decade will see the industry of insurance changing from traditional to focusing on the needs of customers. In the post-COVID-19 age which is characterized by personalization, the services are offered on the basis of data obtained from other sources and gadgets. Insurance companies such as Metlife could profit from this potential because the coming decade will see the application of algorithms to financial planning as well as human input and advice with sophisticated algorithms that will match the customer with the best service and adviser (Netscribes 2021).
  • Digitalization: With the rise of AI, RPA, cloud computing as well as blockchain, Internet of Things, and blockchain, digitalization is expected to revolutionize the insurance value chain. Metlife is able to take advantage of this opportunity through Digital advancements to offer seamless customer experiences. This will further offer personalized pricing and smaller risk pools, based on customers’ preferences. In 2025, the insurance sector has the ability to automatize 25 percent of its processes (especially manual processes such as claims processing as well as underwriting, customer support as well as policy management) by using AI as well as machine learning. When the other hand, by combining RPA along with AI instruments, the bots could aid in the collection of data from both external and internal sites as well as extract information, study the history of customers, and determine fraudulent claims.
  • The Underwriting Process: According to the RGA’s survey 85percent of respondents have indicated the need for improvement in the performance of underwriting. The insurance premiums that are underwritten by AI are expected to exceed 20 billion dollars in 2024. This is an increase of 1500% in the next five years following the use of AI-driven instruments. At least 30 percent to 40 percent of an underwriter’s work is being spent performing manual administrative tasks The opportunity to digitize is now in the air. Metlife is able to convert its operations to digitalized for better expansion across the entire insurance industry(Netscribes 2021).
  • Health insurance: As life expectancy increases and health trends shift, insurers will play an increasing influence on how they treat their clients. In 2030, the number of people who are 60 or older will increase by over 50 percent from 900 million in the year 2015 to 1.4 billion. Additionally, non-communicable illnesses that are most closely tied to behavior and lifestyle such as heart disease, diabetes, and lung cancer, will make up 71 % of the deaths each year worldwide and will account for a growing percentage of the mortality risk. All of these will drive the manufacturers of life and annuities to get their customers involved in the value-sharing economy (Bernard. et. Al, 2020).

Threats In The SWOT Analysis Of MetLife

  • Gig Economy: Most organized companies around the globe offer group insurance. Numerous online portals and well-known workplaces such as Fiverr, Amazon Mechanical Turk, and others have led to an increase in freelancers who have no formal affiliation. This has resulted in substantial losses for insurance businesses. The ‘freelancer’ market typically consists of the millennials and GenZ who aren’t so keen on insurance and see it as something that could be planned in the future. In addition, because of the absence of group insurance policies discounts, it is even more difficult for insurance companies to appeal to and satisfy them(CoForge 2020)
  • Customer Privacy Issues: Data has become an integral component of the industry all over the world to tailor experiences for customers. The increase in data sharing and usage has given rise to cyber-risks to the privacy of data for consumers. It is vital for the insurer to build customer satisfaction by taking appropriate safeguards for data privacy and transparently communicating the same to the customers.
  • Impact of COVID-19:Due to the pandemic the insurance channels are disrupted because there is a lack of face-to-face interactions with customers. Customers are demanding a reduction in rates until the economy gains a feeling of resemblance. In this scenario, it becomes mandatory for insurers to put their exclusive “Stay at Home’ products and include them in the mobile-first strategy to guarantee more reach and greater success.
  • Competition: Metlife’s rivals include financial institutions like Prudential, AIG, Satefarm, New York Insurance co., etc. They constantly eat up the company’s market share by making more efficient use of their resources. New digital-first competitors are always going to have better infrastructure to reach the online audience as opposed to the newly modernized insurer. The competition-driven challenges pose the biggest threat to Metlife and can be mitigated only by strategic planning and innovative execution using meaningful and successful collaborations.

Limitations of SWOT Analysis for MetLife

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is extensively used to plan strategic strategies However, the analysis has its fair share of drawbacks.

  • Certain abilities or aspects of an organization can be both a strength as well as a weak point at the same. This is among the main drawbacks that SWOT analysis has. For instance, changing environmental regulations could be an issue for the company but however, it could also be an opportunity in the sense that it can allow the company to compete on the same level or even gain an advantage over competitors, if they are could develop the product quicker than competitors.
  • SWOT is not a method of determining how to get a competitive edge It is not a strategy to gain a competitive advantage, therefore it should not be considered a solution in and of itself.
  • The matrix serves as an initial point of reference for an analysis of how the proposed strategies might be implemented. It offered an evaluation window, but it did not provide any implementation plan that is based on MetLife’s strategic competitiveness. MetLife
  • The SWOT model is a static analysis that analyzes the current conditions with only a few potential modifications. When circumstances, capabilities, and threats alter, the dynamic of the competitive landscape will not be apparent through a single analysis.
  • SWOT analysis could make a firm overemphasize one external or internal element in formulating strategies. There are interrelations among the most important external and internal aspects that SWOT cannot reveal that could be crucial in determining strategies.

Weighted SWOT Analysis of MetLife

Given the previously stated shortcomings of the SWOT analysis/ matrix, the corporate management has decided to assign an appropriate amount of weightage for each of the strengths and weaknesses of the company. 

Companies also evaluate the probability of happenings in the near future, and the impact they will be on the company’s performance.

This is referred to as weighted SWOT analysis. It’s better than a simple SWOT analysis since With a weighted SWOT analysis MetLife managers are able to focus on the most important elements and ignore the less crucial ones. 

It also eliminates the problem of the long list, which causes organizations to make an extensive list, but none is considered to be crucial.

Advanced SWOT analysis

MetLife SWOT Analysis can be further enhanced through the use of the latest SWOT analysis method.

Utilizing advanced SWOT analysis could increase your Strategic Competitiveness and competitiveness with MetLife in providing valuable and complete details. 

To do this, MetLife combines the strengths-opportunities, weaknesses-opportunities, strengths-threats, and weaknesses-threats.

  • Making use of strengths to profit from opportunities – SO.
  • Eliminating weaknesses in order to capitalize on opportunities – WO.
  • Utilizing strengths to minimize dangers- ST.
  • Simplifying weaknesses to minimize risks- WT.

References Books on MetLife SWOT Analysis

MetLife (2018), “MetLife Annual Report”, Published in 2018.

Euromonitor (2018), “Financial Sector Analysis “, Published in 2018.

A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)

L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)

M. E. Porter, Competitive Strategy(New York: Free Press, 1980)

O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)

R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)

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