Comprehensive Report: Aviva Life Insurance SWOT and PESTLE Analysis

This report provides a comprehensive analysis of Aviva Life Insurance, a multinational insurance company, using SWOT and PESTLE frameworks. The SWOT analysis identifies the company's strengths, such as strong financial performance and brand awareness, and weaknesses, including the need for more investment in new technologies. It also explores opportunities like growth in the Indian market and potential threats from competitors. The PESTLE analysis examines the external factors influencing Aviva, including political stability, economic factors like the diverse UK economy and tax rates, social factors such as population and healthcare concerns, technological advancements, legal frameworks like employment acts, and environmental issues like climate change. The conclusion emphasizes the importance of regularly analyzing both internal and external factors to ensure success and achieve business objectives, highlighting the need for Aviva to address its weaknesses and capitalize on opportunities within the dynamic business environment.

INTRODUCTION: Aviva is multi-national insurance company
headquartered in London, England in 2000. It has about 33
Million customers across 16 countries. Aviva is one of the
largest general insurer and a leading life and pensions provider.
The company offers wide range of insurances like car, house,
life, etc. Aviva is one of most popular insurance companies
with an annual Revenue of £70.252 billion in 2019.
Business Environment
Let's Analyze the external factors of Aviva Life Insurance:
1) Political Factors: Factors involving Government intervention that might
affect the economy and the business operations. Some of them are:
• Political Stability and importance of insurance sector in the country's
economy.
• Risk of Military invasion
• Level of Corruption – Especially levels of regulation in financial sector.
• Legal framework for contract enforcement
2) Economical Factors: By analyzing the Economical factors, businesses
determines the economy's performance in the certain industry that result in
computing the organization's operational capabilities. Some of the
economical factors are:
• Diverse Economy: UK has a diverse economy. UK's market is so
diverse it gives an equal opportunities for the every business to grow
and develop.
• Foreign Direct Investment: A society with a wide culture gives people
from foreign countries a space to live and grow. It's economy has
attracted people from many countries across the world.
• Tax Rate: The corporate tax for companies in UK is 19% but after the
announcement in 2020 tax rate was reduced to 18%.
Inflation: In 2020, Rate of inflation in UK was 1.94% which was less in
2019 that was 1.7%.
3) Social Factors: Factors that are affected by trends, beliefs and attitude
of the population are Social Factors. Some of the Factors are:
• Population: According to an estimation, UK is estimated to reach 74
Million of population by the end of 2039.
• Health care System: People in UK are very much concerned about their
health and so their they spend huge amounts of money on life
insurances. This makes UK a great market for a company like Aviva
Life Insurance.
• Education: UK is one of the countries that keeps updating their
education system annually with the advanced knowledge.
• Income Level: There is a fall in the rate of unemployment and a
reasonable inflation rate makes citizens of UK high income earners.
4) Technological Factors: UK is one of the leading
countries when it comes to technology and advancement.
The economy provides many opportunities for the
entrepreneurs. Every advancement is for betterment of the
economy.
5) Legal Factors: Companies in UK has to follow the
Employment Act 1996. This acts protects the rights of the
employees and ensure they get all the benefits like minimum
wage, holiday pay, medical pay, maternity or paternity leave.
6) Environmental Factors: The UK faces issues such as:
• Bad Weather
• Climate Changes
• Laws regulating environmental pollution
SWOT Analysis of Aviva
SWOT Analysis of Aviva Life Insurance analyses the
company's internal factor like it's strengths, weaknesses,
opportunities and Threats. In this SWOT Analysis, strengths
and weaknesses are the internal factors and opportunities and
threats are the external ones.
Strengths:
Strengths of Aviva Life insurance UK:
• Aviva has a strong financial performance
• Aviva is one the companies with a consistent business
performance across business segments.
• The company has high brand awareness and focuses on
cross-selling.
Weakness: Weakness is something that Aviva can improve:
• Aviva needs more investment in new technologies
• Financial planning is not done properly.
Opportunities: Strong growth: The Indian market is growing
and the percentage of earning population is also rising. This
makes India a high potential market for insurance schemes as
people are looking for options for investment.
External Environment
PESTLE Analysis: PESTLE Analysis is a concept of marketing
which is a system to study the external (Political, Economical,
Sociological, Technological, Legal and Environmental) factors
that helps in day to day planning of a business.
CONCLUSION
It can be concluded from the above that a company should
do analyze the internal(SWOT Analysis) and External
Factors (PESTLE Analysis) on a regular basis to ensure
success in the market. From the above SWOT Analysis, it
can be understood that the company has a strong financial
position in the market but still needs to work on financial
planning to ensure stability in the market and also identify
the opportunities and threats like the competitors in the
market. From the above PESTLE Analysis, It is understood
that a company needs to take care of all the external factors
like Political, Economical, Social, Technological, Legal and
Environmental Factors to ensure that the goals and
objectives are achieved.