NOTHWESTERN MUTUAL LIFE INSURANCE COMPANY

Northwestern Mutual Life Insurance Company



Northwestern Mutual Life Insurance Company

Business Overview

Northwestern Mutual Life Insurance Company (NML)--the ninth largest U.S. life insurance company in 2000 as ranked by revenues--offers life, disability, and long-term care insurance as well as a variety of annuities and other accumulation products. NML, a rarity among the largest American insurance companies, was chartered west of Philadelphia. Until the 1980s, it remained a specialty company, issuing only individual life insurance policies. NML then shifted from a product- to market-driven company, although its emphasis would remain largely on its traditional individual life policies. Conservative risk management in both investment and underwriting, characteristic of the company since its founding, has made NML a consistent leader in total life insurance dividends paid to policyholders and in policy renewals. The purchase of investment management and advisory firm Frank Russell Co. in 1999, complemented and strengthened its business lines while giving the 144-year-old company a global presence

Products and services

Northwestern Mutual Life Insurance is one of the largest US life insurers with more than $1 trillion in individual policies in force. Its 7,000 representatives sell a lineup of life, disability, long-term care, and employee benefits products (health, dental, 401(k) plans). It also offers retirement products, including annuities and mutual funds, to a clientele of small businesses and prosperous individuals

Internal Analysis

SWOT Analysis:

Strength

There is much strength that Northwestern Mutual Insurance can count on and boast off.

The state-of-art technology Northwestern Mutual Insurance is offering-easier insurance deals

The strong subscriber base over 10million subscriber's in their kitty.

Offering Value Added services to it's customer's almost free of cost or with nominal charges.

Northwestern Mutual Insurance was the first service provider to introduce finance option deals.

Aggressive roll out to capture dominant market share and create an entry barrier

Sales & Marketing

Weakness

Marketing strategy

Restricted mobility services

Hidden Cost- Not able to retain the roped in customers

Lacks Transparency at end user level

Lacks to spread Technological Awareness

Opportunities

Northwestern Mutual Insurance has timely and effectively captured the market with its strategic moves. So there are a good number of opportunities.

In the area of E-Commerce, Northwestern Mutual Insurance have good advertising and packages.

Providing instant connection to the customers making a happy and satisfied customer base

Finance & Accounting

Threats

The threat from newcomers

Easy convertibility to other insurance companies in the market

Forgery issues.

To face many legislative barriers form government as well as its competitors

Threat from Services each with the expanding networks to sustain the competitive market situation.

Management

Strategies

Northwestern Mutual Insurance worked backwards by looking at what the customer could afford and came to the conclusion that he can support average revenue per user. Then it worked out what kind of investment would be required to sustain these revenues and make money. It also leveraged economies of scale to reduce costs. (Saucer et. al., 2009)

Human Resources

Northwestern has realised that the main capital investment in building a strategic alliances. North Western has made a number of corporate alliances with leading US corporations.

Research & Development

By using its own software specialists, North Western is technologically and strategically ahead of other ...