Comprehensive PESTLE Analysis Report: Aviva Insurance and UK Market

This report presents a PESTLE analysis of Aviva Insurance, examining the political, economic, social, technological, legal, and environmental factors influencing the company's operations within the UK insurance market. The analysis highlights the impacts of Brexit, economic conditions, changing consumer demands, technological advancements, regulatory changes (GDPR), and environmental considerations. The report provides recommendations for Aviva, including exploring climate resilience strategies, investing in renewable energy and reforestation projects, and offering incentives for customers' self-protection. References to relevant academic and industry sources are included to support the analysis. This assignment provides a detailed overview of the external factors impacting Aviva Insurance, offering valuable insights for strategic decision-making.

Management

Aviva Insurance pestle analysis
1. Political factors: due to the negative situations, UK was forecasted to the left the
union of Europe in March 2019. In order to minimise the impact of uncertainty, government
has taken steps. Considering this policy, chosen company named Aviva has done the transfer
of its insurance policy into the Aviva Insurance Ireland. In this way, government policies put
higher impact on the insurance market of UK.
2. Economic factors: Country named UK is found to be the prosperous and developed
country in the world. At the same time, UK economy also tends to favour the insurance
company. However, Brexit regulation remains the greater concern due to the economic
uncertainty in recent time (Devasenathipathi, Saleendran and Shanmugasundaram, 2017).
3. Social factors: due to the changing needs and wants of people, Aviva Insurance is
seeking to manage their risk and capital with the longer agreement regarding reinsurance. At
the same time, demand is also growing due to the higher affordability related to “pension risk
transfer.” This is the reason that pension schemes are utilising advantage of the favourable
environment through transferring risk (Dodds, 2017).
4. Technological factors: it is true that tablet and mobile have enhanced the customer
experience. By keeping this in mind, Aviva Insurance has focused on digital disruptor for
improving the customer experience. It is found that Aviva entered in the joint venture with
the Hill house in Hong Kong. Data analytics also assist in understanding the customers.
Aviva also made the investment in predictive analysis and weather analytical solution like
flood mapping.
5. Legal factors: “General Data Protection Regulation” has been brought specially in the
finance and insurance sector of UK. In Aviva also, GDPE plays a significant role. For
instance, if any of the person will buy product from its channel or website, it will ask for the
payment information. Besides this, person’s necessary information such as address, age, post
code and other information has been asked when a person allows for the policy. This is done
to prevent the fraud.
6. Environment factors: Due to the growing consideration of people, companies are
required to give emphasis on the environmental measures. Aviva has also invested the
amount of around £1.8 billion in wind, solar, biomass efficiency, and energy. However, it

becomes significant for companies to give emphasis on the climate changes (Oduro, Akpabot,
Akakpo and Gyasi, 2019).
Recommendations
From the above Pestle analysis, it is recommended to exploring the ways for climate resilient
with the industry risk management, underwriting as well as investment function. It is found
that risks of climate changes are becoming the reality for insurance sector. Due to this, it
should give clear focus on the decision-making related to technological changes, weather loss
or health impacts (Balachandar and Panchanatham, 2017). Online Significant contribution is
also recommended toward the reforestation and renewable energy project. Due to the
increasing involvement of people in insurance policies, it is recommended to Aviva for
providing discounts to people who invest in their self-protection. For instance: it can extend
its investment in low carbon technologies as well as energy deficiency.

References
Balachandar, G. and Panchanatham, N., 2017. Online Technology-A Faithful Friend for the
Life Insurance Industry. International Journal of Banking, Risk and Insurance, 5(1), p.18.
Devasenathipathi, T., Saleendran, P.T. and Shanmugasundaram, A., 2017. A Study on
Consumer Preference and Comparative Analysis of All Life Insurance Companies. Icfai
Journal of Consumer Behavior, 2(4).
Dodds, C., 2017. The investment behaviour of British life insurance companies (Vol. 7).
United Kingdom: Routledge.
Oduro, B., Akpabot, S., Akakpo, A. and Gyasi, E.A., 2019. Pledge Towards Workforce
Diversity and Organisational Wellbeing: A Case Study of Aviva Plc. In Futures Thinking and
Organizational Policy (pp. 287-303). Palgrave Macmillan, Cham.