Aflac is an insurance service-providing American multinational company. Bill Amos, Paul Amos, and John Amos founded the insurance service-providing company in 1955. Today, we’ll discuss the SWOT analysis of Aflac; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Aflac
- Life insurance service
- Health insurance service
- Supplemental insurance service
Industry-focused area of Aflac
- Human resource services
- Insurance services
Statistical facts and figures of Aflac
- Annual revenue – 19.5 billion USD (2022)
- Net income – 4.2 billion USD (2022)
- Employees – 12882
- Asset net worth – 131 billion USD (2022)
Competitors of Aflac
- Humana
- New York Life
- Prudential Financial
- Colonial Life
- Old Mutual
- ManulLife
- Liberty Mutual Insurance
- Esurance
- Metlife
- Cigna
- State Farm Insurance
- Allstate
The SWOT analysis of Aflac would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Aflac SWOT analysis as a business strategy analysis example company as follows;
Strengths of Aflac
Some of the main internal strengths in the Aflac SWOT analysis example company as business strategy analysis are as follows;
Service Portfolio
Aflac has established a very large service portfolio comprising insurance plans for customers. They are vision, dental, accident, cancer, health, and other supplementary insurance plans. A variety of insurance plans help the company target a wide range of customers with different types of needs and requirements.
Large Network
Aflac has developed a very large network comprising agents, brokers, partners, and distributors in various countries. The insurance company employs advanced technological tools and software to connect with the customers and offers them a great seamless experience.
Recognized Brand
Aflac is a well-recognized brand in the insurance service industry and the company has been operating its business in the insurance industry for the past 70 years. The long legacy and decades of experience help the company to earn the trust and confidence of customers worldwide.
Honors & Awards
Aflac has achieved various awards, recognitions, and honors by the world’s leading organizations and institutes. Some of them are as follows;
- Top 40 Companies for Diversity by Black Enterprise Magazines
- 50 Best Companies for Latinas
- Dow Jones Sustainability Index North America
- 100 Best Companies for Work by Fortune
Satisfied Customers
Aflac offers unique services like cancer insurance and other types of insurance plans. They have helped the company to increase the customer satisfaction level and earn their trust and confidence.
Weaknesses of Aflac
Some of the main internal weaknesses in the Aflac SWOT analysis example company as business strategy analysis are as follows;
High Reliance on Cancer Insurance Plan
There is no doubt Aflac offers various types of insurance plans and services, but the company is heavily relying on the cancer insurance plan as its main source of revenue. High reliance on one product puts the company’s financial position at a great risk.
Dependence on the Japanese Market
Japan is the major market for Aflac’s insurance plans and services. In fact, the company’s exposure outside the Japanese market is very low. High reliance on one market limits the company’s growth rate and market share.
Controversy and Criticism
According to the medical and health insurance policies, the insurance payback of health services should be 82%. However, the study by the US Accounting Office showed that it is barely at 35% for premium services; the company claimed it to be 62%. Such types of studies and investigations aren’t good for the company’s reputation.
Opportunities for Aflac
Some of the main available opportunities in the Aflac SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
The international exposure of Aflac and its services is very low. The insurance brand should expand its business and enter into new geographical regions and markets across the world. It allows the company to serve and target new customers; increasing sales and profitability of the company.
Portfolio Growth
In order to increase the growth rate of all of its insurance plans and services; Aflac should add unique value to its services in order to make it attractive to the customers. It would help the company to increase the sales of its services.
Partnrship & Alliances
Aflac should develop partnerships and alliances with other companies in the insurance market; or acquire the smaller firms. It is a great market growth and expansion strategy, and it allows the insurance brand to increase its market share.
Tech Development
Aflac should invest and allocate resources for the latest and advanced analytical tools and software; AI, ML, and automation. It allows the company to amplify its market easily approach new potential customers; and make good investment decisions with limited risk factors.
Threats to Aflac
Some of the main potential threats in the Aflac SWOT analysis example company as business strategy analysis are as follows;
Competition
The insurance industry has become highly competitive over the years. Aflac has to face multiple competitors and they all offer the same insurance services to the customers.
Regulations
Government regulations are very strict for the insurance companies. Aflac should comply with the government regulations and legal requirements of the country. Otherwise, it costs the company millions of dollars in lawsuits and penalties.
Economic Recession
The global economy is going through a recession phase with high oil prices, an unemployment rate, and limited buying power. When people have limited income, they won’t buy insurance plans and services.
Conclusion: Aflac SWOT Analysis Example Company |SWOT Analysis of Aflac |Business Strategy Analysis
After an in-depth study of the SWOT analysis of Aflac; we have realized that Aflac is the world’s leading retail insurance service-providing firm. If you are learning about Aflac SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
