conduct a SWOT analysis of LMDi company, provide three supported recommendations of what the company should do next and provide 4 strengths, 4 weaknesses, 2 threats, 2 opportunities, and 3 recommendations.
LMDi is a leading insurance company that provides a range of insurance plans in the healthcare, building, marine, and aviation sectors to its 25 million globally dispersed customer base. The company consists of around 5,000 employees and generates annual revenue of more than 350,000,000 USD.
LMDi started its life as an exclusive health insurance provider 50 years ago. As a result of multiple acquisitions over the past 30 years, LMDi has extended its services to include property and casualty insurance plans in the building, marine, and aviation sectors. Each of its four sectors comprises a core team of specialized and experienced agents where they generate the company's revenue by selling insurance policies.
Some of the key departments within LMDi include underwriting, claims settlement, customer care, legal, marketing, human resource, accounting, and IT departments. Both prospective and existing customers generally contact LMDi's customer care department via telephone, although contact via email and social media has increased exponentially over the past few years. LMDi strives to distinguish itself by providing competitive policies and premium customer service that does not end once a policy has been sold. Its management believes that doing so helps to achieve increased levels of customer acquisition and retention.
Over the past few decades, the company's profitability has been in decline. A committee comprised of senior managers was formed to investigate and make recommendations. The committee's findings revealed that the main reason behind the company's deteriorating financial position is the increased number of fraudulent claims and the associated payments being made against them. These findings showed that the fraud committed has become complex and hard to detect because fraudsters have become more sophisticated and organized. Apart from incurring a direct monetary loss, the costs related to the processing of fraudulent claims result in indirect loss.
The committee pointed out that the frequency with which the existing regulations change, and new regulations are introduced has recently increased. Unfortunately, the company has been slow to respond and has not been able to ensure complete and continuous compliance. Due to these shortcomings, LMDi has had to pay heavy fines. The committee noted that another reason behind the company's poor financial performance is that insurance plans are created, and policies are underwritten without a thorough risk assessment. This has led to incorrect premiums being set and more payouts being made than anticipated.
After consulting with its IT team, the committee suggested adopting a data-driven strategy with enhanced analytics to be applied across multiple business functions so that different business processes consider relevant internal and external data. In this way, decisions can be based on evidence rather than on experience and intuition alone.
The insurance industry has a new and promising change. The IN-for-U Programming company has launched a state-of-the-art and technology-driven comprehensive insurance risk management system; it assurances reduction of losses by (a) improving risk evaluation and maximizing risk mitigation, which applies to both creations of insurance plans and when new applications are screened at the time of issuing a policy, (b) implementing a proactive catastrophe management system that decreases the number of potential claims resulting from a calamity and (c) detecting fraudulent claims.
conduct a SWOT analysis of LMDi company, provide three supported recommendations of what the company should do next and provide 4 strengths, 4 weaknesses, 2 threats, 2 opportunities, and 3 recommendations.
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