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Swot Analysis On Reliance Insurance
Swot Analysis On Reliance Insurance
BACKGROUND OF FORMATION:
Following emergence of Bangladesh as an independent
nation in 1971, insurance industry was nationalized along
with banking and major industrial sectors of jute, textile,
sugar and other heavy industries. Under the nationalized
scheme, only two corporations in the name and style of
Sadharan Bima Corporation (General Insurance Corporation)
and Jiban Bima Corporation (Life Assurance Corporation)
were set up by the Government for carrying on general and
life insurance business respectively. Starting with gradual
liberalization of investment in industry and commerce,
insurance business was also allowed in the private sector
From 1985. As a result, a number of companies were set up.
RELIANCE INSURANCE LIMITED was the fourteenth in line to
start general insurance business in the private sector.
The Company was incorporated on 20th March 1988 and was
allowed to commence business by virtue of the Certificate of
Commencement of Business issued by the Registrar of Joint
Stock Companies on 22nd March 1988. The Company
obtained Certificate of Registration issued by the Controller
of Insurance on 7th April 1988.The company was
subsequently listed in the stock Exchanges of Bangladesh in
1995.
Corporate Vision
Companys vision is to become the premier
insurance organization and the insurer of first
choice in Bangladesh with a sound reputation
for dependability, professionalism and the
highest standard of customer services.
Building profitable and socially responsible
financial institution focused on Market and
Business with Growth potential, thereby
assisting Reliance Insurance Company and
stakeholders to build a just, enlightened,
healthy democratic and poverty free
Bangladesh.
Corporate Mission
Grow significantly and achieve significant nonlife insurance market share.
Continue delivering attractive returns to our
shareholders. Become a caring organization
and employer of choice.
Invest in top quality human resources and
develop full potentials of employers by
providing continued training and insurance
education.
Bring innovation in insurance products and
selling techniques.
Objectives
The objectives and principles of Investment
operations of the Insurance Company are:
To invest fund strictly in accordance with the
principles of Islamic Shariaah.
To diversify its investment portfolio by size of
investment, by sectors (public & private), by
economic purpose, by securities and by
geographical area including industrial,
commercial & agricultural.
RELIANCE AT A GLANCE
Particulars
2010
2009
2008
2007
2006
Gross Premium
1241.00
1,041.13
1,101.53
827.53
743.83
Net Premium
618.07
430.25
453.20
353.66
293.18
Net Claims
137.68
105.09
103.68
85.60
70.92
Investment &
Other Income
(Gross)
153.68
114.94
61.14
42.42
43.02
Underwriting
Profit
161.00
56.78
96.32
76.56
45.10
287.23
146.30
137.93
100.68
70.18
Paid up Capital
304.20
234.00
180.00
150.00
150.00
Total Reserves
1114.55
821.63
637.68
543.98
505.40
Total Assets
2262.94
1,880.29
1,467.92
1196.97
1065.80
791.88
759.87
598.82
463.12
350.68
Investment in
share & debenture
330.36
190.52
198.53
169.52
171.86
Dividend in
Percentage cash)
Dividend in
Percentage
Bonus)
30%
20%
15%
-
71.55
51.71
59.97
44.26
34.78
384.64
407.03
382.33
101.83
101.00
Shareholder
Equity
1170.09
952.44
688.20
152.75
151.72
Number of
Employees
335
325
305
279
283
NATURE OF BUSINESS:
The Company carries on the business of all types of insurance except life assurance. It
has now 32 (thirty two) branches, one local office with the Head Office at Dhaka.
The Company's main business operations are being carried out in the following areas:
Head, Operations
Chief, Reinsurance
Md. Israfil
Golam Sarower
Chief, Accounts
Chief, Finance
Vice President
Kazi Altaf Hussain
Abdul Motin
Asiqur Rahman
Shamsul Alam
Organ gram
Engineering Insurances
Machinery Insurance (Machinery Breakdown)
Deterioration of Stock (DOS)
Boiler and Pressure Vessel (BPV)
Electronic Equipment Insurance (EEI)
Contractor's All Risks (CAR)
Work Plant (WP)
Oil & Gas Well Drilling Equipment Package (OGD)
Contractors Plan & Machinery (CPM)
Hotel Owners All Risks (HOAR)
Miscellaneous Insurances
Burglary
Cash in Safe
Cash in Transit
Cash on Counter
Cash in Premises
Business Interruption
Fidelity Guarantee
All Risks
Personal Accident
Personal Accident (air Travel)
Product Liability (PRL)
Public Liability (PL)
Workmen's Compensation
Employers Liability
Motor Insurances
Company aim to be a good corporate citizen and to work in partnership with the
community. They have participated while the nation in a crises of natural
disaster.
Customers
Environment
The Company reports annually our direct and indirect contributions to improving
the environment.
Human Rights
Company respects the Universal Declaration of Human Rights and are guided by
its principles. The company strictly follows non-discriminatory policies in all its
procedures such as recruitment and promotions and has in place a performance
management system that rewards employees based on merit and contribution.
Standards of Business
Conduct
Suppliers
Workforce
The Company holds a biannual Employee Focus Survey, which focuses on the
drivers of business performance, in particular employee engagement and
customer focus. The company's aim is to be as an employer of choice by
engaging its staff and providing them with the necessary skills and opportunities
to contribute to the company's success and fulfill their potential.
.:: Services
Our Services to the customers & Complaints and Suggestions:
Services to the customers:
Striving for customer service excellence has always been our first priority at Reliance
Insurance Limited.
Our customers' needs, including the location and size of our customer operations, are at
the center of our business management and planning processes; from the design and
formulation of insurance policies, to the definition of claims procedures.
Our goals are to always attend to walk-in customers with regards to enquiries,
purchasing new classes of insurance, renewal of insurance and issuing cover notes and
receipts; to guide customers on claims procedures; to provide complete product
information to customers for their better understanding; and to make recommendations
to customers in order for them to make an informed choice.
We are committed to customer service excellence and our mission is backed by
investment
Complaints and Suggestions
Whilst we strive for customer service excellence, a complaint department has been
established by Marketing Services Department. If you wish to make a complaint or
suggest ways we can improve our services, we are hereby ready to assist.
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161.00 crore
96.32 crore
76.56 crore
56.78
crore
45.10 crore
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Number of Employees
283
335
279
325
305
1065.80 crore
1196.97 crore
1,467.92 crore
1,880.29 crore
2262.94 crore
384.64
407.03
382.33
101.83
101.00
71.55 Tk.
59.97 Tk. 51.71
Tk.
44.26 Tk.
34.78 Tk
SWOT
Analysis
STRENGTH
Weaknesses
Opportunities
Threats
Distinct operating
procedures
Upcoming
Insurance
Companys/
Branches
Discouraging
small
entrepreneurs
Country wide
network
Similar products
are
offered by other
Insurance
Company s
Absence of
strong
marketing
activities
Increasing
industries
Political In Sustainability
Strong corporate
identity
High charges
of L/C
Strong employee
bonding
and belongings
Huge Capital
Strengths
Strong corporate identity:
According to the customers, Reliance Insurance Company Insurance
Company is the leading provider of financial services identity
worldwide. With its strong corporate image and identity, it has better
positioned itself in the minds of the customers. This image has
helped Reliance Insurance Company Insurance Company grab the
personal Insurance Companying sector of Bangladesh very rapidly.
Weaknesses
High charges of L/C:
Presently Reliance Insurance Company Insurance Company charges same rates for all
types of import L/C. But for import L/C of exports-oriented industry, Reliance Insurance
Company Insurance Company should reduce the charge of L/C. As a result, exporter
will be benefited and the country will earn more foreign exchange. The commission often
even rises up to 30%.
Reliance Insurance Company Insurance Company currently don't have any strong
marketing activities through mass media e.g. Television. TV ads play vital role in
awareness building. Reliance Insurance Company Insurance Company has no such TV
ad campaign. Although they do a lot of CSR activities compared to other Insurance
Company s.
Opportunities
Distinct operating procedures:
Repayment capacity as assessed by Reliance Insurance Company Insurance
Company of individual client helps to decide how much one can borrow. As the whole
lending process is based on a client's repayment capacity, the recovery rate of Reliance
Insurance Company Insurance Company is close to 100%. This provides Reliance
Insurance Company Insurance Company financial stability & gears up Reliance
Insurance Company Insurance Company to be remaining in the business for the long
run.
Country wide network:
The ultimate goal of Reliance Insurance Company Insurance Company is to expand its
operations to whole Bangladesh. Nurturing this type of vision & mission & to act as
required, will not only increase Reliance Insurance Company Insurance Company
profitability but also will secure its existence in the long run.
Increasing industries
In Bangladesh Number of industries are establishing day by day and these are a great
opportunities for expanding the business for Reliance. The export and import oriented
sectors and businesses are widening up in Bangladesh. Entrepreneurships are
expanding and these are great opportunities for expanding the businesses for Reliance.
Threats:
Upcoming Insurance Company s/Branches:
The upcoming private, local, & multinational Insurance Company s posses
serious threats to the existing Insurance Companying network of Reliance
Insurance Company. It is expected that in the next few years more commercial
Insurance Company s will emerge. If that happens the intensity of competition will
rise further and Insurance Company s will have to develop strategies to compete
against and win the battle of Insurance Company s.
Political In sustainability:
Due to the political In sustainability the situation of the country doesnt remains stable.
And this is a great threat for expanding or operating the business activities. If political
violence continues the overall situation of the economy goes down and economic growth
begins to slow down. And this is a great threat for expanding the business.
Recommendations
Good Communication has to be build up to grab the new customers and also with the
existing customers.
Marketing Sectors should be developed more strongly by providing skilled and efficient
employees.
More Dynamic and efficient employees should be hired or appointed to the marketing
sector.
E-Business facilities should be widen up.
Premium charges should be more favorable.
Conclusion
A lot of new commercial Insurance Company has
been established in last few years and these
Insurance Company s have made this sector very
competitive. So new Insurance Companys have to
organize their operations according to the need of
the market. Insurance Companying sectors no
more depends on a traditional method of
Insurance Companying. In this competitive world,
this sector has trenched its wings wide enough to
cover any kind of financial service anywhere in
this world. The major task for Insurance Company
s to survive in this competitive environment is by
managing its assets and liabilities in an efficient.