SWOT analysis of Broadreach Medical Recourse Inc (PBM)

Institution

Name

Date

Supervisor

Introduction

Overview of the Organization

BMR Inc. is a property and casualty insurance agency based in Tustin, California, in the

United States. The insurance agency was established in 1941 to provide insurance cover to

Tustin, California, and the greater Orange County residents. It was founded by Gardner Murray

almost 80 years ago (Crow, 45). Since its inception, the company has remained a family property

with ownership and top leadership positions passed from father to son and then grandsons.

Started as a small family business with a handful of employees, the BMR insurance agency has

progressively developed into a world-class premium insurance company in the United States and

beyond with its official branches in other countries like Japan, Hong Kong, and the United

Kingdom (Elizabeth, 84). The remarkable developments at BMR Insurance Agency are

attributed to its highly automated facilities that ensure that they are up to date with the
technological changes and modern trends in the policy and insurance industry, keeping them at

the edge, ahead of other competitors in the market.

The United States hosts several insurance agencies, hence the most prominent insurance

market globally. Almost every household is engaged in one form of an insurance policy or

medical cover on varied specifications and grounds in America. The insurance market has been

on the upward streak since the early 1980s, with many insurance agencies and companies

established to offer the very basic need ‘insurance cover’ to the growing population in America

(García, et al. 103). Since independence over two centuries ago, the government has supported

ensuring a politically stable environment to necessitate operations of these companies and

agencies. In return, the insurance industry has also proven its worth in contributing to the

economy in terms of employment and revenue generation. For instance, in 2003, the insurance

market recorded approximately one trillion dollars in premiums from insurance covers,

accounting for about 9.6% of the gross domestic product (GDP) 2003 (Onwuegbu et al. 61). The

United States’ insurance market accounted for over 35% of the world’s total market share. These

statistics show how competitive the US insurance market is and the magnitude of the BMR

Insurance Agency’s success over the years.

For the past three decades, the BMR insurance agency has been at the forefront in

providing quality and reliable insurance policies and services to its clients in diverse fields and

professions, both in the private and public sector within and without the borders of Orange

County. BMR Inc. has its clients from all spheres of life, including airlines, airport authorities,

construction firms, manufacturers, producers, transport service providers, media houses, Non-

governmental institutions, financial institutions, and civil servants, since it offers a variety of

insurance services that fit every category (Krishnan et al. 61). Due to its international reputation,

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the company enjoys the services and expertise of other global insurance companies. This has

enabled it to beat its competitors in the US insurance market. BMR provides a tailor-made

product that coincides with all its clients' requirements and specifications, ranging from

professionalism, entrepreneurs’ private individuals, small and medium enterprises to large

organizations in almost all sectors (Harini et al. 184).

Unlike other insurance agencies that only offer exclusive insurance coverage, BMR

Insurance Agency provides a range of insurance services from over 100 highly regarded

companies. The agency is committed to providing premium and reliable services to its clients.

This has been necessitated by continuous recruitment of companies into the fold, insurance

companies that prove to be an asset to clients' personal or business security. For over 80 years of

service, the BMR insurance agency has established a reputable recognition in the United States’

insurance market (Lu et al. 38). This has enabled well-known and large companies to conduct

business with the agency, thus providing clients with an extensive range of options to choose

from. The company has maintained a small agency's feel, offering every client special and

personalized services.

Customer care services are exceptional; clients are attended to with the utmost respect

and dignity they deserve at all times. When you make a service call to BMR Insurance Agency,

the probability that the same representative will attend to you is high, thus ensuring continuity of

conversion and effective response. In addition, BMR Insurance Agency monitors their client’s

files for opportunity opening with lower premiums (Setyadharma et al. 109). It has a robust

system that alerts whenever the policy is in jeopardy of termination or cancellation for any other

reason. In the event of complications, the company provides free legal advice to its clients on

navigating through the challenges to avoid canceling their insurance covers. The level of services

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at BMR Insurance Agency has been the number one reason for positive customer rating and

preference for over forty years (Crow, 45).

Vision, Mission, Goals, and Objectives

BMR insurance agency offers services to the whole United States’ insurance market after

its overwhelming growth success within the Orange County Market. with the current synergy,

BMR now provides insurance cover to neighboring countries like Canada and Mexico (Crow,

55). From the humble beginning in 1941 with only a handful of staff with roughly fifty thousand

dollars in premium booking, BMR agency has advanced from all directions in terms of staff and

premium booking. For instance, the agency currently has over a billion dollars in premium

bookings. An annual growth rate approximated between 16-22% per year (Shah, 33). To the

baseline, the success and growth realized at the agency are due to organized and structured

operational management throughout the years of its existence. The agency has an elaborate and

straightforward vision and mission statement that are carbon-copy of its goals and objectives.

Mission Statement

Agency’s mission statement states, “We strive every single day to act and transact with

Integrity, Seek and embrace diversity, listen, educate and learn; Generate solutions, provide

positive energy, and support energy the community. BMR Insurance Agency is committed to

assisting clients in managing the risk of everyday life and recovering from the unexpected

incidences with effective insurance coverage, exemplary services, and a long-lasting

relationship.” (Setyadharma, 173) BMR Insurance Agency is a client-focused, value-added

partner providing innovative accident management solutions while progressively improving its

services and processes and providing its workforce with opportunities to learn and develop and

contribute to the organization's goals.

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Agency’s Vision

Broadreach Medical Resource (BMR) Insurance Agency “We strive to be the best ahead

of the rest of the insurance agencies, being an agency of choice, providing services, dedicated to

imparting knowledge and protecting the client and business with the best insurance policies at

affordable price. BMR Insurance Agency’s vision is to be the leading insurance company in the

market by creating and providing value beyond the policy.

BMR’s vision is embedded in creativity and innovation; in recent years, BMR has shown

consistency in refining the United States’ insurance industry by implementing innovative

resource management and offering its clients administrative solutions in the form of Self-Insured

Plan Sponsors. Unlike most insurance agencies in the United States, Broadreach Medical

Resources provides unique solutions that save its clients a considerable amount of money while

minimizing clients’ copays and delivering innovative wellness and valuable resources that

members can access at their convenience, anywhere (Setyadharma et al. 109). BMR exposes its

members to a range of opportunities by carefully illustrating different approaches to different

opportunities through detailed analysis of why and how the choices can be delivered cost-saving,

among other critical factors pertaining to clients' satisfaction. It is one of the most trusted

insurance agencies since it provides members with evidence-based evaluations and calculations

that help identify the stark difference between the agency’s recommendations and the industry’s

under-performing plans.

Brand Values

Broadreach Medical Resources (BMR) has created a higher standard of transparency,

clarity, and accountability that puts oversight and control where it rightfully belongs- members'

hands. The insurance plants at BMR are customized to meet the unique and specific needs of the

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member, and the support staff discharges their responsibilities from the service of heart, all to

ensure that the clients receive and enjoy quality services. Broadreach Medical Resource group

believes that access to good and quality health services enhances people's psychological,

sociological, and physical growth (flourishment) (Crow, 53). This belief established a universal

social enterprise that leverages health technology and innovation to enhance human action.

The group has served for decades in coordination with the healthcare professionals in

combination with the world-class technology to provide solutions that assist organizations in

delivering better healthcare services with enhanced efficiency on the scarce healthcare resources

at a considerably lower cost, with improved organizational performance, and most importantly,

provision of most sustainable healthcare solutions and systems. BMR operates under two

businesses; BroadReach Health Development and Vantage Health technology. It has advanced

its operations to the intersection of private and public sector health providers, payors,

governmental institutions, and charitable foundations to deliver results across the health value

chain.

BroadReach Health Development BMR healthcare teams have partnered with donors,

implementors, governments, and players in the private sector in over 25 countries for nearly two

decades. As a result, the agency has implemented high-impact health insurance programs across

various fields addressing various challenges using innovative and modern technology (Crow,

49). The organization has fully integrated into digital transformation, with enhanced data

acquisition and processing techniques to guide and orchestra actions towards the desired goals

and vision. The workforce is adequately empowered to be more effective and efficient in

delivering quality services to the population it serves. Vantage health technology, on the other

hand, focuses on the creation of solutions to address the world most adverse and complex

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insurance challenges. as a result, this department provides decision support, stepwise workflow,

and operational tools to empower healthcare experts across the spectrum to attain improved,

cost-effective and predictable health insurance outcomes (Elizabeth, 84). The achievement is that

the services of BMR insurance policies have received recognition and approval across

geographies, clients and proved certified for varied health challenges.

Strategic Approach

Since BroadReach Medical Resource Inc. operates and offers services within the confines

of the health sector, its source is on the Pharmacy Benefit Managers (PBMs). These third-party

companies perform the intermediaries' functions between medicinal or pharmaceutical

manufacturers and the insurance providers. Besides intermediary roles, Pharmacy Benefit

managers also negotiate rebates, create formularies, process claims, negotiate on the discount

with pharmaceutical manufactures, review drug prescriptions and utilization, establish

pharmaceutical networks, process claims, and sometimes coordinate the mail-order specialty

pharmacies. In response to the increasing cost of medical, health care, and insurance services, the

PBMs have resorted to reviewing their strategic approaches to ensure that the service providers

(insurance agencies and pharmaceutical manufactures) have the best utmost environment to

attend to the needs of their clients and at the same time ensure that clients are not extorted in the

process of service delivery (Crow, 49). For instance, in the recent past, the cost of EpiPens and

insulin has been on the radar of the news headlines as most patients have resorted to rationing on

these medicines since their prices have increased beyond their means.

Since the late 1960s, the BMR insurance agency has offered customers prescription

medicines as one of its health plan benefits. Therefore, it got into the radar of the PBMs to act as

auditors and regulators to help BMR contain drug spending (Setyadharma et al. 109). The initial

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strategy used by the PBMs involved adjudicating prescription drug claims, and by the early

1990s, pharmaceutical manufactures had starters acquiring the PBMs. However, towards the end

of the 1990s, there were numerous concerns on the conflict of interest by PBMs in the insurance

market; hence a federal order was decreed to divestment from the federal trade commissions,

resulting in a trend of acquisition and mergers of insurance agencies with the pharmaceutical

benefit managers. Currently, there are over sixty-five Pharmacy Benefit managers (PBM)

companies’ operations in the United States insurance market. Some of the key PBM players are

Express Script, the biggest independent publicly traded PBM company in the market, CVS

Caremark, OptumRx, and other PBMs; these firms control over 88% of the US market serve

over 270 million American citizens (Crow, 45).

The generic approach applied by the BMR agency provided the roadmap that has enabled

the company to achieve commendable success on its planning, execution, and initiating

improvement on its service delivery to its clients. Being the best ahead of the rest in a

competitive market requires proper and adequate planning of activities and consultation with all

relevant stakeholders. For the years in service, BMR insurance agencies had worked closely with

the PBMs since the early 1960s, when these companies were created to ensure that they offer

nothing but the best insurance and health-rated services to clients. In other words, the BMR

insurance agency uses partnership, collaboration, and capacity building as its basic strategic

approaches. This has enabled it to work with multiple organizations with common visions, goals,

and resources.

Microeconomic Analysis

The pharmaceutical and insurance market is very important for proper economic growth,

economic system, and promoting employment, among other economic factors. Should these

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systems be uneven, especially in medical and life-related insurance, it plunges a country on risky

economic decisions that individuals and insurance agencies or companies consider (Elizabeth,

84). Therefore, insurance agencies are beneficial in shaping a country’s economic system since it

gives the investors confidence to venture into lucrative but risky ventures, thus more income and

revenue to support the country’s economic system by providing the ability to transfer, mutualize

and pool risks, these are some of the economic factors that help in keeping a country’s economic

structure stable. Ronkainen and Linder (2018) explained the essence of pensions and insurance

industries on the United States’ economy. The duo acknowledged that these industries employ

over three million Americans, being the largest institutional investor, providing cover against

various risks.

Risk and effective mitigation strategic plans are the key aspects for considerations for an

insurance company or agency. Therefore, risk extenuation is at the core nature of the insurance

services, and it makes the insurance market highly susceptible to a range of external influences

and forces. For instance, every business or operation is faced with challenges that affect either

their organizational operations or financial systems, Similar to life. It is exposed to uncertain

events like sickness or natural disasters that alter its financial capabilities (Elizabeth, 84).

The past historical calamities and disasters in the United States made most individuals

and organizations secure insurance premiums with insurance agencies to offer financial cushion

if the unthinkable happens to the business. For example, the 2001 terrorist attack, the 2008-9

global economic crisis, floods and earthquakes in the continent, and infernos made many

organizations join the insurance agencies for covers (Elizabeth, 84). The occurrence of these

events has had both positive and negative impacts on the insurance industry; on the positive,

majority realized the importance of taking the insurance cover against such natural disasters, thus

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increased on the sales of premiums, while on the negative, when these natural calamities occur,

they spread across shakes the industry. With the increasing popularity of bancassurance, the

difference between the banking and insurance industry grows thinner (Setyadharma et al. 109).

This is where PBMs help monitor and control the operations and supervise the connection

between these two industries.

Given the impact and influence of banking and insurance industries in the world's

economy and financial flows in general, these industries need to have a reputable microeconomic

structure that promotes economic growth in their respective fields. Basically, the primary

objective of an insurance agency is to help the policyholder recover from the uncertainty and get

them back to the position they were just before the event that caused disruption or loss.

Therefore, the policy needs to have functional financial strength. In the event claim is presented,

it has sufficient liquidity to compensate the clients for the loss at the assured sum (Crow, 45). To

spread the risk, most insurance companies collaborate to re-insure other risks with third-party

insurance companies to spread the risk. For instance, in the event of a catastrophic disaster

affecting a large pool, an influx of claims might cripple the agency if they have to handle such

claims alone, hence the importance of spreading the risk by sub-contracting other related

agencies.

PESTI Analysis

Making strategic plans, decisions, marketing strategies, and designing organizational

growth requires analysis of the industry in all dimensions. Like other markets, the insurance

market is affected by the political environment and government regulations, economic factors

such as growth rates, inflations, interest rates, social factors that constitute the market's macro

environment, and lastly, the impacts of technology and information the industry. These five

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factors are essential in the operations of insurance agencies as they define the scope of operations

(Crow, 45). If factored well in the strategic planning, the company can easily attain the set

objectives. BMR has been in the insurance market for a while. Thus it has acknowledged the

essence of the PESTLE in its operations as well as the PBMs.

Political and Legislative factors; These describe the government involvement in the

insurance market; for instance, the government has the responsibility to control and regulate the

operations within the market through imposition of duties and taxes on the operations (Elizabeth,

84). Government interventions in the insurance market have ensured the economic stability of

the financial services in the market against a range of risks. The most effective way where

government involvement has affected the insurance service industry is by establishing and

enforcing regulations that define the scope of operation in the market to ensure healthy and

ethical competition in the industry. Considering the recent events, for instance, the 2008-9 global

economic crisis, the United States government has been the alert to the market operations to

ensure that such adverse economic implications never occur again (Setyadharma et al. 109). The

introduction of Solvency II by the government has codified and harmonized the legislative

framework for re-insurance and insurance undertakings across the US insurance market.

Economic and Business Factors; To gauge the economic environment in the market, the

firms have to analyze and consider a range of factors that constitute the macroeconomy like

economic growth, interest rates, inflation rates, and exchange rates. The knowledge of these

factors has helped the firms access the demand for premiums, costing of premiums, expansion,

and growth needs in the industry, thus the agency's sustainability in the market for this long

(Elizabeth, 84). In addition, economic factors are key determinants of the market’s performance

and how the performance directly impacts the agency and the long-term impacts on the business

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operations. For instance, if the inflation rate is high in the economy, the effect is directly

transferred to the clients through an increase in the price for premiums and insurance covers.

Social factors; Business operations at BMR directly impact both the private and public

lives of the insured, hence cognizant of the macro environment of the market and its effects on

the services offered by the agency (Krishnan et al. 61). The agency utilizes the social factors to

the market demographics and the market's expectations, thus providing services that resonate

with the demands and needs of the market. These social factors also help the agency gauge the

potential changes in the market size through studying the career attitude, age distribution, and

population growth, among other factors. Cultural values, attitudes, and beliefs are critical factors

that have to be considered in the formulation of insurance terms since there are some

communities or cultures that outlaw some forms of practices; therefore, for the agency to work in

harmony with the society, it has to conform to the acceptable norms and values (Crow, 45).

Technology; BMR is among the few insurance agencies in California that have fully

integrated its business operations on post-modern digital platforms. Technology is an important

factor that fuels an organization’s growth. In the recent decade, technology has been the cutting

edge in the market competition since clients are quick to adopt trendy technology. Hence, they

tend to incline towards agencies that have embraced these new technologies in their operations

(Elizabeth, 84). However, considering the period when the agency was founded, in the early

1940s, when there was not much technology in the industry, the company has spent fortunes to

redesign its systems to conform and accommodate the innovations in technology. In the

insurance industry, technology has twofold effects.

On the one hand, technology has been used in the industry to enhance and improve the

efficiency and quality of insurance services. However, on the other hand, the fast-changing

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technological trends have plunged many companies into huge losses as they are forced to change

even before the immediate innovation gets into the application (Elizabeth, 84). Additionally, the

business environment in the insurance industry has evolved to put customers' interests first;

hence for the company to maintain its relevance in the market, it has to adopt the new technology

in the market.

Legal factors; These are often similar to political factors because they are both influenced

by the government and authorities. Legal frameworks are the set of laws and regulations

established by authorities to control the business operation within a specified market. For

instance, the insurance industry in the United States is governed by the regulations set by the

federal government as well as those set by the country government (Krishnan et al. 61).

Industry Analysis (US Insurance Market)

The United States insurance industry is the world’s largest insurance market. The

industry has remained stable and functional despite the effects of the world pandemic. Though

there are range of challenges in the economy due to the outbreak of the novel coronavirus

pandemic, the US insurance market is not expected to shake or dwindle much. It is worth noting

that the outbreak of Covid-19 has dramatically shifted the economic priority of most states and

radical changes in people’s expectations, needs, and spending habits (Elizabeth, 84). In the first

half of 2020, the US insurance industry nearly shifted to complete virtualization of its operations

as non-contact transactions became the trend of engagement in the wake of the Covid-19 spread

(Setyadharma et al. 109). Even though the insurance agencies quickly embraced virtual

technology, most agencies are likely to encounter challenges to growth and profitability in the

short0-term. The evaluation of the industry’s growth in the short term is cautiously optimistic

(Krishnan et al. 61).

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 National Association of Insurance Commissioners (NAIC) latest report shows that there

is an increase in the number of insurance agencies in 2021; the number increased from 1032 in

2019 to1204 insurance agencies in 2021 (Elizabeth, 84). As the country is slowly recovering

from the effects of lockdown, the insurance industry is among the few sectors that have

continued with the positive deviation trends in terms of revenue collections; the sector recorded

an increase in net revenue to $32 billion, posing an increase in the profit margin of 5.8% in 2021

compared to the total revenue of $22 billion collected in 2019 (Crow, 50). However, the

combined ratio reduction modestly from 97.5% to 97% (Krishnan et al. 61). A key element of

market comparison in the market analysis includes the following factors;

i. Net premium earned increased by 12% ($80,2 billion)

ii. Medical and hospital expenses increased by 6.5% ($41 billion)

iii. Aggregate loss ratio falls to 81.6%

iv. Increase in aggregate expenses by 25.3% (22.1 billion)

v. Increased in capital and surplus by 11.6% (18.7 billion)

The summary of growth or expansion of agencies filing to the NAIC between 2011 to

2020 is shown in the figure below

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 Insurance agencies filing to NAIC (Crow, 51)

The market’s profitability trend illustrated by the figure below shows the increase in

profit margin and net revenue. The critical growth in the market’s underwriting outcome can be

linked to the 11% (82.1%) increase in the total earned premium to approximately $817.2 billion

(Elizabeth, 84). Nonetheless, the market partially offset the increment by a 6.6% increase in the

total medical and hospital expenses amounting to $675.4 billion, a 23.5% increase in the claims

on premiums, thus adjusting the administrative expenditure to about $112 billion. General

administrative expenditure increased by 23.6% (20.6 billion to $64 billion) due to the return of

health of Insurer Fee (HIF), which is fully expensed in the first quarter of 2021 at approximately

$16.5 billion (Crow, 52). The US insurance market also recorded a decrease in net income on

investment by 8% ($0.6 billion), and this decrease can be attributed to the slow recovery in the

economic market in early 2021.

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 Profit margin and Net income (Crow, 52)

Medical & Hospital Benefits Vs. Earned Premium, Combined Ration, and Loss Ratio (Krishnan

et al. 61)

Porter’s five forces analysis

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 According to Porter’s five forces model analysis in the US insurance market, the trends in

the industry is influenced by five fundamental principles outlined as follows;

Porter’s five forces model (Elizabeth, 84)

The threat of a substitute service; the cost and premiums covered in the market are almost

uniform to key market players with slight variations. The market pricing has remained so for

decades since the clints show the willingness to pay only the premiums based on the availability

of substitute service providers. The availability of other key players in the market who can offer

the same services as the BMR insurance agency has made the firm quite sensitive to the

premiums provided to clients (Krishnan et al. 61). For instance, when clients realize that one firm

charges more, they automatically migrate to other firms that offer the same services at a

relatively lower price.

The threat of new firm entry in the market; Entry of a firm in the market is a sign of

growth. However, this can be accommodated up to a specific limit beyond which the established

firms institute entry barriers to consolidate the market. Restriction to entry in the market is a

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critical factor that determines the magnitude and speed of threats to new firms or entrants. It can

be classified as high or low based on the competence and resource of the potential entrant. In the

event that the established firms project that the potential entrant will have a positive impact on

the market dynamics, the entry barriers are diminished

The rivalry between existing firms; Rivalry among players in the market is healthy as

long as it is practiced within the ethical codes and standards, but when these standards are

ignored, it can turn dangerous. Rivalry pushes insurance agencies to establish competitive

strategies to earn them a sustainable, profitable position in the market. In BMR, the competitive

advantage is the cutting-edge technology used in the company (Crow, 54).

Bargaining power of suppliers; The force of negotiation is one of the strategic options for

success and high performance in the insurance industry. Since the premiums are nearly the same

among insurance providers, it is upon the agency to establish the most effective and persuasive

bargaining power to convince the clients that their services are superior and best fit their needs

compared to other players in the market. Statistics show that the intensity of competition in the

market often increases when characterized by a well-balanced competitor (Elizabeth, 84).

Bargaining power of clients; It is natural that before buying a product or receiving any

service in the market, the terms of engagement have to be spelled at the beginning. Likewise, in

insurance, before the client accepts and enter into a contract with the service provider, the insurer

has to explain in detail what is included and things that are not covered; it is at this point that the

client is allowed to give a proposal amount that he feels comfortable to spend based on the

information gathered from various sources pertain the services they are seeking (Krishnan et al.

61).

Competitive Advantage

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 BroadReach Medical Resources Inc. has indeed applied competitive advantage strategies

to outperform competitors in the US insurance market. The company has enjoyed the benefits

and privileges of being the darling of clients' tastes and preferences (Krishnan et al. 61). Through

its effective competitive advantage strategies, it enjoys an outstanding share of the market’s total

profit margins compared to other agencies, as well as the greatest market value for the company

and shareholders (Elizabeth, 84). BMR has capitalized on the use of proprietary technology in

offering services, a strategy that its competitors have never been successful in cracking despite

several attempts. Across the broader US insurance market, it’s a BMR insurance agency that

offers superior and high-quality insurance services at a considerably lower price than other

service providers (Crow, 55). This has made it more attractive to most clients, thus explaining

the higher number of customers served by the agency across the country.

The agency implements a sustainable competitive advantage through generic strategies

centered around different concepts. Some of the concepts include; the agency has managed to

build a legal restriction to its market rivals through copyright and patenting its own unique

technological innovations; this prevents other companies from using the same technology

without its approval or permission (Elizabeth, 84). Another strategy is excellence and client

satisfaction through competency on complex and hard-to-perform processes, especially in areas

that involve economies of scale. BMR is known by its competitors as the most significant risk-

taker since it offers insurance services even in areas where most fear investing (Crow, 57). The

agency has grown to earn the trust of its clients, thus creating a network of relationships

anchored on respect and mutual respect, virtues that rivals cannot copy.

Value Chain & Functional Analysis

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 It is indisputable that the insurance industry is important to human survival and

operations. However, during this pandemic period, the industry and other industries have

experienced a time of enormous challenges. The impact of insurance services has expanded into

far-reaching social and economic issues; thus, it has surfaced clear that as the country adapts to

live with the pandemic, it will demand that it re-evaluates how things are executed in the new

reality (Elizabeth, 84). It can be observed that there has been an increase in the stakeholders in

the insurance industry in the past year and the extended issues of bureaucracy in preparing

claims and the high cost of making compensations.

Value chain evaluation identifies cost drives both execution and structural concerning the

role of every stakeholder in the industry in recent times. Basically, the accumulative funds drawn

from premiums are secured by financial management institutions. When these contributions are

collected for long, they form the saving reserves that help run agencies and make payments on

verified claims (Crow, 54). The insurance industry is very beneficial in supporting and

promoting the economic prosperity of individuals and nations. These benefits are reflected in the

satisfaction of the policyholders as well as the amount reserved through premium subscriptions.

The functional analysis between insurance agencies and banking institutions in the US

shows that the insurance industry is the supporting block. They ensure continuous circulation of

money to banks that banks use in loans and other investments. Therefore, the progress of the

insurance industry is beneficial to both the aviation, transport, and banking industries (Elizabeth,

84). The establishment of the national social security program is one of the strategies

implemented to boost the functionality of the insurance industry in the US. The program covers

all those in the public and the formal private sector where they have to channel a specified

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amount to the kitty to act as their social security in retirement or old age. There are some special

provisions where a policyholder can use the social savings not necessary upon retirement.

SWOT Analysis

SWOT analysis is a strategic management tool often used to evaluate its operational

trends to get the best desirable results. BMR Group Plc managers have utilized the strategic

planning tool to conduct a situational analysis of the agency. It allows organizations to

understand their present strengths, weaknesses, opportunities, and threats in their current

operational environment. BMR is one of the leading insurance agencies in the market and has

maintained its dominant position for decades through constant review of the SWOT analysis

(Elizabeth, 84).

Strength: Operating in one of the world's competitive markets, the BMR group Plc has to

demonstrate its strengths to help it protect the market share and penetrate new markets. Based on

the analysis, some of the strengths at the agency are; superb penetration of new markets. Over

the years, the company has established expertise at penetrating new territories and succeeding

them. It’s through market expansion that has helped the company build stable revenue streams

and diversify its economic cycle risk. The use of Go To Market Strategies (Elizabeth, 84) on its

marketing, exemplary customer satisfaction, good return on expenditure, and strong free cash

flow has enabled it to acquire more clients. Experienced and highly skilled professionals have

proved to be the root, stem and trunk of success to BMR Group plc.

Weakness: BMR Plc needs to improve upon; for instance, the profitability ratio and its

net percentage on net contribution are way below market average. The company has the highest

attrition rate in the workforce as compared to other market players (Krishnan et al. 61); therefore,

spend more than competitors, and financial planning is not perfectly done

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 Opportunities; Transportation is an opportunity that needs to be exploited; for instance,

reducing expenses on transportation since reduced shipping cost will significantly bring down

the overall expenditure, thus saving more cash to boost profitability. There’s a need to create

new environmental policies to level the playing field in the market, lower inflation rates, develop

the company’s core competency, and adopt the latest technologies in the operations are other

opportunities (Elizabeth, 84)

Threats; Limitation to counterfeit and degenerated quality is the main threat to the

organization, especially in the new markets. The latest market regulations could be a threat to the

dealing on some specified products and services (Krishnan et al. 61); the increasing trend on the

increased wages or pay is a threat especially to BMR since it has a huge workforce, the slightest

increase in the pay would automatically translate to colossal expenditure on recurrent

expenditure. The growing strength of competitors is a threat in that they might grow stronger to

overturn the company’s position in the market (Crow, 56).

Recommendation and Reflection on SWOT Analysis

Being one of the leading companies in the US insurance industry, BroadReach Medical

Resources Plc has a responsibility to maintain its position at the top of the market; it then means

that the company has to perfect and significant on its strength while improving on the

weaknesses and threats. Perfecting the company’s strength does not only help in consolidating

the market but also necessitates its expansion into new markets. From the analysis, it has been

established that certain organizational factors can serve as strengths and, at the same time, be a

weakness, and this has been the major challenge at BMR Plc. For instance, the environmental

regulations provide opportunities for organizational growth by providing a level playing field in

the market. The analysis recommends the integration of other complementary companies through

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acquisition and merger as it will help in the integration of modern technology to streamline

operations and build a reliable supply chain. The combined outcome of competitive advantage

should be implemented differently since SWOT analysis is not an end on its own but a

supplementary organizational evaluation.

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