Skip to content

IAI Actuarial Core Principles · Business Management · Mission, business strategy, teamwork and time management

Narmada Re, an Indian reinsurer, has a strategic plan to grow in health reinsurance. Its analysis shows: a strong actuarial team with health pricing experience; a regulatory change expected to raise demand for health cover; weak brand recognition among small insurers; and a new foreign entrant with larger capital. Which classification of these four factors in a SWOT framework is correct, in the order given?

The correct order is Strength, Opportunity, Weakness, Threat. Internal positives and negatives are strengths and weaknesses, while external favourable and adverse developments are opportunities and threats. The team is internal and positive, and the entrant is external and adverse.

  1. AStrength, Opportunity, Weakness, ThreatCorrect
  2. BStrength, Threat, Weakness, Opportunity
  3. COpportunity, Strength, Threat, Weakness
  4. DWeakness, Opportunity, Strength, Threat
  5. Strength, Opportunity, Threat, Weakness

Explanation

The actuarial team is an internal positive, so a strength. The regulatory change is an external favourable development, so an opportunity. Weak brand recognition is an internal negative, so a weakness. The better-capitalised entrant is an external adverse factor, so a threat. Other options swap internal and external factors or positive and negative ones.

Did you get it right without looking?

One question tells you little. A timed set on Mission, business strategy, teamwork and time management shows your real accuracy, how long you take and where you lose marks.

Practise Mission, business strategy, teamwork and time managementFree diagnostic mock

More Mission, business strategy, teamwork and time management questions