Introduction of Company

East West Insurance Company (Limited) appeared on the horizon of Insurance Industry
in Pakistan in 1983,Founded by late Mr. Unus Khan woh was its first Chairman. Over the years the Company, with the half of its management and diligent staff, has successfully accomplished the essentials task of gaining the good will and confidence of its policyholders as one of the leading insurance Companies with a vast network of branches all over the country. Besides transacting traditional Insurance business like Fire, Marine & Motor, East West Insurance underwrites specialized port polios for which it has created specialilzed divisions within the company namely, Engineering, Crops & Lives tocks divisions. The Company business is thus well diversified and provides coverage to a wide range of Agricultural and commercial business activities.

Vision of Company
To be amongst most trusted Insurance security of the country by providing protection to our Insured in most effective basis ensuring prosperity for its stakeholders and growth with human force.

Mission
To ensure most effective management for sustained growth of the company. To provide reliable secure protection for the policyholders. To retain sound position of the company in industry while working with dedication & innovation. To maintain continuous pursuit for cost effectiveness, enhanced productivity for ensuring financial health of the organization, to take care of shareholders aspiration continuously. To inculcate value added system all cross the organization for ensuring trustworthy relationship with its clients as well as shareholders.

Classes of Business General Insurance Life Insurance

General Insurance:
General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance. It is called property and casualty insurance in the U.S. and Non-Life Insurance in Continental Europe.

Under General Insurance the Company covers following risks.

Fire ( Paddy, Cotton genning, Project) Marine ( Import Export) Motor Insurance (Third party only, Third party fire and theft, Third party comprehensive) Crop Insurance Live Stock Guranntees 1. Safe Tranportation Gurantee 2. Fidelty Gurantee

Machinery breakdown Insurance Contract All risks Insurance Erection All risks Insurance Computer All risks Insurance Boiler and Pressure Vessel Insurance Bond Insurance 1. Costum Bond 2. Bid Bond 3. Mobilization Advance

Life Insurance:
Life insurance is a contract between an insured (insurance policy holder) and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the benefits. The advantage for the policy owner is "peace of mind", in knowing that the death of the insured person will not result in financial hardship for loved ones and lenders. It is possible for life insurance policy payouts to be made in order to help supplement retirement benefits; however, it should be carefully considered throughout the design and funding of the policy itself. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.

Under Life Insurance the Company covers following Aspects.

Whole life coverage Permanent life insurance Limited-pay Endowments Accidental death

Board of Directors
Chairman : Chief Justice (R) Mian Mahboob Ahmad Managing Director & Chief Executive: Naved yunus Directors : Javed Yunus Pervez Yunus Maheen Yunus A.K.M Sayeed Tulu Javed Yunus Corporate Secretary : Shabbir Ali Kanchwala Legal Advisor : Rizwan Ali dodani, advocate Aditors : Anjum Asim Shahid Rehman Chartered Accountants Share Registrar : Bema Associates (Pvt.) Ltd.

515, EFU House, M.A. Jinnah Road, Karachi.

Board of Management
Managing Director & Chief Executive : NAVED YUNUS Regional Director (Central) : SAJJAD ZAFAR Executive Director (Marketing) : JAVED YUNUS Chief Financial Officer (CFO): SHABBIR ALI KANCHWALA Executive Director (Operation) : PERVEZ YUNUS Director Finance : SHABBIR ALI KANCHWALA Director : MOHAMMAD FAYYAZ KHOKHAR Director Operation : ENGR. KAZIM RAZA Director Development : UMEED ANSARI

TEAM OF PROFESSIONALS General Managers: Branch Managers: Iftikhar Hussain Mushtaq Ahmed Awan Jan Muhammad Ibrar Ellahi Ch. Muhammad Ashraf Nasihar Ali khan Deputy General Managers: Maroof Hussain Kazmi Ahmed Khokhar Shaheen Syed Sajid Ali Naqvi Munir Ahmed Shakir Assistant General Managers: Muhammad Mobeen Khan Muhammad Shahbaz Ali Nazir Ahmed Baluch Shahzad Aqil Chief Managers: Syed Azhar Amin Hashmi Fayyaz Khokhar(GM MKT.) Mian Aftab Rizwan Saleem Muhammad Naeem Aamir Jawad Fawad Mrs. Rubina Regional Managers: Muhammad Sharif Ashiq Hussain Soomro Taswar Ellahi Awan Ch. Muhammad Jawad Sadiq Ali Malik Muhammad Saleem Muhammad Rashid Masood Tauqir Ahmed Khan Branch Managers: Mian Muhammad Akmal Mumtaz Hussain Tahir Shahzad Zafar Ch. Managers: Mazhar Ali Sheikh

During the year 2007, the gross premium in Fire Portfolio has increased to Rs.251.80 million which shows an overall gain of 26% compared to previous year, whereas the increase in net premium is 47%. whereas cession to reinsures has increased by almost 8%. The net claim ratio in Fire portfolio is 24% and hence the overall claim ratio has decreased.

Marine Insurance

During the year 2007, the gross premium in Marine Portfolio has increased from Rs.49.922 million to Rs.89.34 million. This shows a net gain of Rs.39.4 million. You would also observe that the net premium has also increased by 208%. The net claim ratio in this portfolio is 58%.

MISCELLANEOUS ACCIDENT INSURANCE Personal Accident Insurance was first introduced in England in 1845 following the invention of steam engine. this class of Insurance developed rapidly following the promulgation of the Act in 1900, and is now widely purchased all over the world. The deteriorating law & order situation in the country in general and in metropolitan cities in particular has resulted in increased demand for this type of Insurance. As a result, people tend to insure themselves against variety of risks. This includes Personal Accident, Household Insurance, Travel Insurance, Burglary, Public liability, Cash in Safe and Transit Insurance & Workmen Compensation, etc. Some of these are of special interest to the businessmen. In the year 2007 we have written a premium over Rs.2.39 million in this portfolio. MOTOR & AUTOMOBILE INSURANCE Automobile Insurance is based on two major classes of automobile insurance; namely, public liability or third party liability and comprehensive insurance. The former provides indemnification against the bodily injuries and or property damages to the third party only. As in most other countries, in Pakistan, it is a requiement under law to have this minimum coverage before plying any motor vehicle on the road. Comprehensive insurance provides a broader coverage. In addition to third party liability, it provides protection to the insured for damage to his own car and may include losses due to accident as well as theft. Because of the high rate of motor accident as well as theft, especially in the metropolitan cities,those who can afford it tend to buy comprehensive insurance inspite of its high premium rates. The motoe insurance generates substantial amount of revenue to the insurance companies. However, profitability for this portfolio has not been encouraging due to huge losses in the past. With the improvement in law & order situation and introduction of car tracking devices, the frequency of claims on account of theft is declining. An improvement in the profitability of this portfolio is therefore expected. in the year 2007, we hace earned gross premium of Rs. 75.46 million in Motor Portfolio. ENGINEERING INSURANCE East West Insurance Company Limited established its Engineering Division in 1989 under the supervision and guidance of highly qualified and experienced professional Engineers. The Division since then is underwriting various classes of Engineering Policies. Engineering Insurance is used by the Insurance Industry as a collective term to describe various types of policies for the protection of construction work as well as the erection and operational machineries. In addintion an important function of Engineering insurance, is the prevention and avoidance of accidents causing property damage and minimizing such losses if at all such events were beyond the control of human being. The Engineering Insurance includes the following : An All Risks Insurance cover during the period of Construction, Erection and testing phases. I addition to this, Engineering Insurance also provide cover to projects in operational period through Machinery

Breakdown Insurance, Loss of Profit following machinery breakdown and Machinery Guarantee Insurance. The net premium income in this portfolio for the year 2007 is Rs. 19.767 million.

BONDS AND CREDIT INSURANCE Contractors undertaking the Construction of public works building, roads etc are required to furnish bonds for faithful execution of their obligations. The surety bound to indemnify the employer if the contractor fails or refuse to complete the job in accordance with the contractual obligations. The large or medium size contractors also provide the facility of mobilization advance to the contractors. This advance is paid on the provision of Mobilization Advance Bond. In addition, the contracts are normally awarded against the tenders duly secured with bid bonds so that the contractor does not refuse to commence the work after the award of contract. East West Insurance Co. Ltd. provides several kinds of Bonds to their clients namely, Bid Bond, Advance Payment Bond/Mobilization Bond, Performance Bond, Supply Bond, Fidelity Bond, Maintenance Bond, Custom or Excise Bond. In the year 2007, premium income under this head was Rs.22.72 million. CROPS INSURANCE Inspite of many technological advancements in agriculture sciences including weather forecasting, Crop farming enterprise still remains vulnerable to the vagaries of nature including floods, drought, hailstorm, windstorm, pest and diseases, etc. Hence, it continues to be a risky business indeed. Moreover, an overwhelming majority of our farmers engaged in crop farming are small farmers with meagre financeal resources. When crop losses occur, they are the worst affected. Hence, farmers need financial protection against total and partial crop losses because of calamities happening due to these factors. Crop Insurance provides the much needed protection in these case. Mindful of the role CI has played in the sustained development of Agriculture production in many countries , the need and desirability of Crop Insurance Program for the country's farmers has been felt for a long time. However for one reason or another, it could not materialize until the bank of punjab took the initiative and in collaboration with the East West Insurance officially launched Crop Insurance Scheme for its farmers borrowers in july 2004. Under this scheme, EWI insures crop loans advanced by the Banks to the farmer borrowers against a wide range of perils namely, floods, heavy rains, hail storm, wind storm, frost, drought, pests etc. at a minimum cost and indemnifies crop losses of Insured farmers to the extent of outstanding loans in a Calamity situation. Our Crop Insurance Scheme is now in the 4th year of operation and is operating succussfully to the full satisfaction of the borrowers of bank of punjab. Other Banks have also approached us, expressing their interest in the scheme. Now that the State Bank of Pakistan(SBP) is also interested in a CI program, and has been holding meetings with Banksand Insurance Companies in this regard, It is expected that a uniform CI program will be formulanted soon in which all the Banks and Insurance Companies can participate. It is worth mentioning here that the Draft CI Proposal which the SBP has circulated as a working paper for discussion by the representative of Banks and Insurance Companies contains many of the essential features of EWI Crop InsuranceScheme which we have been advocating for the past many years. The year 2004 was the first time, in the history of the Company that we generated a premium income of Rupees. 2.51 million under the CI portfolio, which has increased to now more than Rupees 8.57 million in 2007.We are expecting this premium to grow manifold in the years ahead when other Banks especially the large Banks (HBL, NBP, MCB, ABL) begin to offer the CI shceme to their Borrowers. Beedless to stay, there is indeed tremendous potential for generating premium income under this portfolio. LIVESTOCK INSURANCE Livestock sector has assuned an increasingly critical role in the rural economy of Pakistan as 30-35 million rural population is engaged in raising livestock for their livelihood. With the population growing at the rate of foce persons per minute, increasing dietary awareness and rising standard of living, demand for Livestock products in the country is rapidly increasing. Consequently, this sector has the potential of rapid growth and fast economic returns. Hence, it can also serve as an effective tool for government poverty reduction program in the rural areas. In fact, realizing this potential, government is now talking keen interest and giving priority to the development of this sector However, there are a wide variety of risks associated with the health and well being of animals and their productivity, which can result in significant financial losses to the livestock owners. Livestock insurance provides financial protection to Livestock owners against risks of these losses. Investment in animal often constitutes a large part of the farmers total capital. This investment therefore needs to be protected. Moreover, procurement of animals is often financed through credit. Insurance as a security for credit, improves the credit worthiness of farmers. Lending institutions feel comfortable when credit given to farmers for the purchase of livestock is insured, as it serves as a supplementary security. East West Insurance (EWI) has been involved with Livestock insurance right from the beginning and is one of the leading insurers with good experience in this field. The company provides comprehensive all risks

insurance cover for individual animals as well as herds against death due to disease of accident including fire, lightening and snakebite as well as against risks of calving. Thus the insurance cover protects the interest of the borrowers as well as the Bank advancing loans for the purchase of livestock. During the year 2004, a gross premium income of Rupees 2.85 million was generated on this account, which has now increased to rupees 11.94 million during the year 2007. Because of the government interest and emphasis in the expension of this industry as reflected in the liberal credit policies and easy loaning to livestock owners by the banks, we foresee a rapid and sustantial inscrease in volume of business under this head in the coming years.

DISTRIBUTION OF PREMIUM PORTFOLIOS The respective contribution of portfolios in the total premium income and in the underwriting profit / loss of the company vary from the year to year . It mainly depend on the pace of economic activity in the country and underwriting policy of the company. the low interest rates combined with liberal credit facilities by the banks for auto finance phenomenally increased the number of vehicles on the road. Resultantantly demand for auto insurance tremendously increased. This obviously increased the motor premium portfolio by many folds. Similar factors also influenced various other portfolios resulting in our all premium distribution as under.

Orginasational structure of branch in which I have done My Internship

I have done my internship in the branch of the Company which is situated on Mall Road in Naqqi Plaza opposite to Panorama Center. Branch is consisting of three major departments. 1. Accounts

2. Under Writing 3. Claim Department I have done my work at Under writing and Claim Department . Under writing department is assisted by Mrs. ROBINA having experience of more than 20 years in the concerned field of insurance. This is a department which is well furnished and situated on first flore . It is in easy access of every customer . All the employ of this department was well dressed and well mannered. They were all very experienced and they were all true professionals. Their standard of dealing with customers was appetizing . Every month foreign trainee visit the branch .

Claim Department is in the supervision of Mr. AZEEM, who is young and skilled insurance professional having experience more than 5 years in the Claim settlement .Mr . Azeem was the person on whom this department is proud of that . This is the man who has the skill of professional dealing with everyone. All other employee of this department are very courteous and polite with the clients . I joined the company on July 21st 2012 . On very first day Madam Robina introduce me with the core functions of the company. She told me the major risks being written be the company. She made me aware of this thing that there is very tough competition between the companies in the market , So the purpose of profitability in written premium is not achieved upto the satisfactory level . The company is compelled to write the policies or accept the risks at lower prices to meet with the competitive environment of the market. So the company is accepting the risks at reduced prices. As the insurance business in Pakistan is going through the adverse soft market without taking into account the sum insured or limit of indemnity , companies accept / underwrite the risks at the lowest prices to be competitive in the market and not losing the customer. At Underwriting department I learnt 1. How to decide whether a risk presented by the client should be accepted or not. 2. How to Classify the risk. 3. How to calculate the premium . 4. How to prepare the policy. (term and conditions , Exclusions ) 5. How to prepare cover note. 6. How to renew the policy. The procedural methods of performing all above functions. The most important thing which I happened to learn from Underwriting manager is the respect of client . She taught me that customer is always a king. Treat him like a king and never be rude with him . She made me aware of this fact that good attitude of staff with the customer reflects a sound image of the company in the market. If the attitude of the staff is good with the customer , the customer is never annoyed with the services of the company. It is the first and foremost principal of

success. During my stay at company , more than 20 risks proposals were presented before the underwriter . Most of the risks are presented by brokers. She welcome every client with warm attitude. She dealt with every client in very polite and respectful manner. Out of them 5 were substandard Out of them 5 were substandard because of not satisfying the required paremeters of underwriting . One of them was a case in which the client had a hobby of changing the insurers and getting the fraudulent claims. By deliberately damaging his own property or insured risk to get the claim. He was dealing in Plastic items . On research by the underwriting manager it was explored that this customer has the intention of fraud and is in activities of changing the insurers on regular basis from the last three years he has changed three insurers and EastWest Insurance company was the 4th one. On getting the information from other two insurers it was revealed that the claim of that customer had been rejected by them on concrete evidences of fraud. They provided full detail of fraud to the underwriting officer. On the basis of detailed observation underwriter after consulting senior director and claim manager decided to reject the risk proposal straight away. In the underwriting department , the other four cases were also rejecterd on the basis of concrete evidence of fraudulent intentions. In Claim Department , I learnt The whole claim settlement procedure. Which contain the following steps 1. Receiving the notifications . 2. Reviewing the Claim 3. Acknowledgment of defendant 4. Decied whether to investigate or not 5. Investigation through surveyors or loss adjusters 6. Negotiation 7. Payment of claim 8. Claim recoveries from reinsurers or co-insurers

During my work in Claim Department , I happened to observe the practical application of above said steps in two cases. The first case came in front of me during my stay at the claim department of the company was a unique type of case of fraudester . The person who delebrately set his property on fire with the intention of get the claim from insurance company . this case belonged to a book shop owner. Who shifted all his items to a hidden place with very secrecy . Then he collected a huge quantity of waste paper and set them on fire . Then he notified the claim with intention of getting indemnity . At final occasion the person in the neighboring of him told all about his mischief to the survey team of the company and presented the very video who he had made on the occasion of trnsfering the original stock of books to the hidden store and bringing waste collection of paper and the incident of setting them on fire by the fraudester . It was concrete evidence of fraud which he could never deny . On the basis of this evidential video and some more research the company reached at the conclusion that the claim is presented with fraudulent intention without any loss suffered by the client , this fact was revealed to the company by loss adjuster on investigation . So company decided to repudiate the claim on the basis of concrete evidence of fraud . Another case which came in front of me was an interesting case of theft . On the Agricultural land , An insured tractor had been theft . The owner of the tractor instantly informed the company at the very branch in which I was present . The manager of claim department warmly welcomed him in his office and present him tea. He , then told about the incident of the theft which he had suffered yesterday. The manager listened very carefully about the theft story . He also presented the copy of FIR before the manager. The manager asked him for a written notification of claim is also required to initiate the claim procedure. Then he handed over the written application which contained all the essential details of the incident. On accepting this notification, the claim manager appointed the loss adjuster to investigate the reality of the incident. The loss adjuster made the visit of the site, made snapshots of the very place where the tractor was theft. He also met with some neighboring land owners and asked question to confirm the reality of the matter. All the persons verified the statement made by insured. On further investigation, it was explored that it was the clear case of theft and he reported to the claim manager about the reality of the incident . On the basis of further research and loss adjusters

report the claim manager reached at the conclusion that it is a clear case of theft and claim was straight away paid to the customer.

Working at underwriting department

I learnt that under fire policy,normally following risks can also be covered on customer,s demand 1:riot and strike 2:burglary 3:obligue theft 4:atmospheric disturbance 5:earth quake 6:terrorism 7:impact damages

Above said risks can also be added in fire policy on customer demand.Acceptibility of these additional risks depend upon there nature .If these risks fall with in the parameter of underwriting,then underwriter will accept those,otherwise he will refuse to accept.these additional risks are accepted on extra premium. Under Motor Insurance Following Policies are issued, 1:Third party only. 2:Third party fire and theft.

3:Personal accident. 4:Comprehensive policy.

Third party only

In this type of policy,loss of third party is covered.Vehicle of insured is not covered.in case of damage to the vehicle of third partydue to the negligence of insured,insurance company will pay the damages on behalf of insured up to the limit of indemnity or sum insured.nothing would be paid to the insured in respect of damage to his own vehicle.

Third party fire and theft

In this type of policy,the loss to the vhicle of third party as well as insured both are covered.

Personal accident
In this type of motor insurance policy,personal accident of insured person is covered.

Comprehensive policy
In this type of policy,insured,s own vehicle, vehicle of third party,as well as medical injuries to insured are also covered.

These types of policies are issued by the company under marine insurance.
1:Hull 2:Cargo 3:Freight Normally policies are issued to cover, 1:Marine import 2:Marine export 3:In transit cargo.

Hull insurance
Company does not deal in this class of business.

Aviation insurance
Company does not deal in this class of business.

Travelling insurance
Company does not deal in this class of business.

Erection all risk insurance

Under this class,all the risks related to installment of machinery and construction related works

are covered.

Property insurance
Under this class policies are normally issued for houses,offices and workplaces.Under these

policies,buildings and contents are covered.

Professional indemnity
These types of policies are taken by employers to minimize their risk towards their employees.

Mam robeena told us in detail about all these cllases. During my work at underwriting department I learnt how to 1:assess the risk 2:deciding whether to accept it or not 3:How to prepare cover note 4:How to design policy 5:Defining terms and conditions of policy 6:defining exclusions 7:Settinng the premium. These decisions are taken by under writer.And m,am Robeena tried her best to make me well aware about all these functions.From engineering department,I got information about different guarantees issued by the company, 1:Bid bond 2:Mobilization advance bond.

3:Performance bond. 4:Retention money bond. I got information about these guarantees from engineering department with necessary detail.I worked for15 days in underwriting department.During my work I learnt practical aspects of underwriting and its importance to the whole insurance portfolio.

Working at claim department

After working at underwriting department,I joined claim department.In claim department,Mr.Azeem, who is young claim manager made me aware of practical aspects of caim handling process.He told me that claim handling process vries according to the class of business,amount and nature of claim.I practically observed the application of clim handling process in atheft case.This case related to the theft of sanitary items from godowns,which later on proved to be fraudulent.This claim was repudiated on the basis of concrete evidence of fraud.During my stay at claim department I observed that common steps in claim handling process are followings, 1:Intimation of incident by the party or intermediary via telephone or letter.If initially on phone,then later on, written application is also required. 2:Claim form is provided by insurer to insured to get necessary details of incident for further proceeding. 3:On receipt of claim form,claim department collects policy from underwriting department to know the essential details about terms and conditions of policy.To know whether the claimed peril is covered or not.Whether the policy is enforced or not.Whether the premium is paid or not. 4:If the above terms and conditions have been fulfilled,then normally in small claims,if there is no concealment,claim is paid straightforwardly.

5:In case of large claims,normally,investigation is carried out by insurer to know the reality of incident.This investigation is carried out by govt.lisence holder surveyor or lossadjuster.After completing the investigation, lossadjuster submits his report to the claim manager,in which he defines the quantum of loss and actual amount which should be paid by the insurer.On investigation,if fraud revealed ,due to the exaggeration of claim amount,deliberate damage,or causing the fictitious event in order to get the claim,the same should be informed to the insurer. If fraudulent intention of insured proved on investigation ,the same should be informed by loss adjuster to the claim manager with necessary details.On the basis of this report,the claimmanager decides whether to pay the claim or not.If payable,then up to what extent. The report of loss adjuster is not always final.If claim manager desires ,he can investigate the case again for further fact finding. 6:Then in case of claim settlement,all details are given to the insured regarding settlement of claim and amount payable in context of claim settlement.If insured is satisfied,then amount of claim is paid to him.In case,if insured is not satisfied,he can use financial ombudsman service or alternate dispute resolution if this clause is pre agreed between insurer and insured before the enforcement of contract. 7:After the payment of claim to the insured, the next step is claim recoveries.That are, in case of reinsurer,from reinsurer,and in case of coinsurance from coinsurer. I learnt and observed brief application of above said steps while working at claim department. Mr.Azeem made me aware about a claim case which was about theft of sanitary items from the store.After the submission of claim form,the surveyor was appointed to investigate the claim,lator on,through investigation,it was revealed that it was fictitious event created to get the claim.Because,the way,which was mentioned by the insured as the entrance of thieves was not of sufficient width,which allows the thieves to be entered in to the store.Further investigation proved the fraudulent intention of insured and claim was refused by insurance company.

During my work at claim department I observed the practical application of each claim function in detail which broadened my vision and explained each and every confusion in detail.Mr.Azeem

was very kind and true professional who explained each and every step in great detail to made me clear in return of my queries. The most important thing that I learnt from Mr.Azeem is that customer is always respectable,the staff of insurance company should him in vwry respectable manner,the claim settlement proceedings should be with in reasonable time and customer should be made aware of proceedings time by time.During claim settlement procedure insurance company shold properly communicate with the customer to make him aware of yhe whole situation regarding claim settlement. Furthermore the behaviour of staff should be very polite with the customer, but should be firm in decision making.This will give a good name to the company and paint a n attractive picture of company before the people. It was a good experience of working at claim department,as all the staff cooperate with me and showed a true picture of insurance business in broader vision.

Financial analysis

Swot analysis of Eastwest insurance company Ltd.

SWOT stands for Strengths, Weaknesses, Opportunities and Threats, and is an important tool often used to highlight where a business or organization is, and where it could be in the future. It looks at internal factors, the strengths and weaknesses of a business, and external factors, the opportunities and threats facing the business. The process can give you on overview of where the business, and the environment it operates in, is strategically. This is an important, yet to simple to understand, tool used by many students, businesses and organizations for analysis. The following SWOT analysis looks at eastwest insurance co.ltd which is operating in general insurance industry. The analysis shows eastwest insurance co.ltd's Strengths, Weaknesses, Opportunities and Threats. The SWOT analysis will give you a clear picture of the business environment eastwest insurance co.ltd is operating in at the present time.
Strengths:

The strengths of a business or organization are positive elements, something they do well and is under their control. The strengths of a company or group and value to it, and can be what gives it the edge in some areas over the competitors. The following section will outline main strengths of EASTWEST insurance co.ltd
.

Competitive pricing is a vital element of eastwest insurance co.ltds overall success, as this keeps them in line with their rivals, if not above them. The services/products offered by eastwest insurance co.ltd are original, meaning many people will return to eastwest insurance co.ltd to obtain them. Experienced employees are key to the success of eastwest insurance co.ltd helping to drive them forward with expertise and knowledge. Eastwest insurance co.ltds distribution chain can be listed as one of their strengths and links to success. Supplier relationships are strong at eastwest insurance co.ltd, which can only be seen as strength in their overall performance.

Weaknesses:

Weaknesses of a company or organisation are things that need to be improved or perform better, which are under their control. Weaknesses are also things that place you behind competitors, or stop you being able to meet objectives. This section will present main weaknesses of eastwest insurance co.ltd

Not reducing costs in the same way as their competitors' means eastwest insurance co.ltd is outlaying more of their profits. Having higher costs than competitors is a major weakness.

eastwest insurance co.ltds R&D work is low and insignificant, which is a major weakness in general insurance as it is constantly creating new products. Not having an effective marketing strategy seriously hampers the success of eastwest insurance co.ltd. The lack of business alliances is a major weakness for eastwest insurance co.ltd, as they will struggle to get deals, favours and partnerships. eastwest insurance co.ltd is in a poor financial position which makes it weaker than its competitors. eastwest insurance co.ltds lack of innovation limits its success, as there is no forward thinking. Good companies need loyal employees, but eastwest insurance co.ltd has a poor relationship with staff which affects performance. eastwest insurance co.ltd does not function internationally, which has an effect on success, as they do not reach consumers in overseas markets. Problems with stock are a weakness for eastwest insurance co.ltd as they need to keep up with demand. Online presence is vital for success these days, and lack of one is a limitation for eastwest insurance co.ltd. eastwest insurance co.ltd's underdeveloped distribution chain has a marked effect on performance as it affects the distribution of their products/services. The lack of original products/services is a major flaw in eastwest insurance co.ltds future success, as it shows a blinkered outlook. eastwest insurance co.ltds lack of patents/proprietary technology puts it behind its rivals and is deemed as one of their weaknesses. The weak brand name compromises success for eastwest insurance co.ltd as it doesn't inspire people to buy their products/services. A limited customer base is a major weakness for eastwest insurance co.ltd as it means they have less people to sell or market to.

The weak market position of eastwest insurance co.ltd is a limitation to their overall success, as they are well behind their rivals. eastwest insurance co.ltds limited product line is a major weakness. eastwest insurance co.ltds weak supplier relationships also have an adverse effect on success, as it cuts ability to negotiate. eastwest insurance co.ltd is behind its competitors with a low share of the market, which in turn leads to lower turnover.

Opportunities:

Opportunities are external changes, trends or needs that could enhance the business or organisations strategic position, or which could be of a benefit to them. This section will outline opportunities that eastwest insurance co.ltd is currently facing.

Changes in technology could give eastwest insurance co.ltd an opportunity to bolster future success. eastwest insurance co.ltd could benefit from expanding their online presence and making more money from online shoppers/internet users. The changes in the way consumers spend and what they buy provides a big opportunity for eastwest insurance co.ltd to explore. The growth of the general insurance industry is an opportunity for eastwest insurance co.ltd to grasp. New market opportunities could be a way to push eastwest insurance co.ltd forward. As the economic climate improves, so do the opportunities for eastwest insurance co.ltd. eastwest insurance co.ltd has the opportunity to enter a niche market, gain leading position and therefore boost financial performance. Reaching out into other markets is a possibility for eastwest insurance co.ltd, and a big opportunity. Grasping the opportunity to expand the customer base is something eastwest insurance co.ltd can aim for, either geographically or through new products. Takeover and merger opportunities could be explored for eastwest insurance co.ltd and used to acquire new customers, new resources and enter new markets. Expanding the product/service lines by eastwest insurance co.ltd could help them raise sales and increase their product portfolio. Expanding into other markets could be a possibility for eastwest insurance co.ltd.

eastwest insurance co.ltd has a number of highly skilled staff, which is an opportunity for them to explore as expertise of their staff can help eastwest insurance co.ltd to bring the business forward.

Threats:

Threats are factors which may restrict, damage or put areas of the business or organisation at risk. They are factors which are outside of the company's control. Being aware of the threats and being able to prepare for them makes this section valuable when considering contingency plans and strategies. This section will outline main threats eastwest insurance co.ltd is currently facing.

Consumer lifestyle changes could lead to less of a demand for eastwest insurance co.ltd products/services. Change in demographics could threaten eastwest insurance co.ltd. The financial burden of increasing interest rates could be a threat to eastwest insurance co.ltd. Regulations requiring money to be spent or measures to be taken could put financial or other pressure on eastwest insurance co.ltd. New products/services from rival firms could lead to eastwest insurance co.ltd's products/services being less in demand. Changes in the way consumers shop and spend and other changing consumer patterns could be a threat to eastwest insurance co.ltd's performance. Being undercut by low-cost imports is a major threat for eastwest insurance co.ltd. Not keeping up with changes in technology could be detrimental to the future of eastwest insurance co.ltd as they could slip behind their rivals. Slow growth and decline of the general insurance market is a threat to eastwest insurance co.ltd. Extra competition and new competitors entering the market could unsteady eastwest insurance co.ltd and be a threat. The actions of a competitor could be a major threat against eastwest insurance co.ltd, for instance, if they bring in new technology or increase their workforce to meet demand.

Price wars between competitors, price cuts and so on could damage profits for eastwest insurance co.ltd. A slow economy or financial slowdown could have a major impact on eastwest insurance co.ltd business and profits.

The rise and/or fall of the foreign exchange rate could threaten eastwest insurance co.ltd with regard to importing and exporting. Rising costs could be a major downfall for eastwest insurance co.ltd as it would eat into profit. Structural changes in the industry could be a threat for eastwest insurance co.ltd Substitute products available on he market present a major threat to eastwest insurance co.ltd.

Gross Premium Break Up

This SWOT analysis has been created using FREE SWOT Analysis Generator by Ivory Research Ltd: (free-swot-analysisgenerator.php) .