GEICO SWOT Analysis, Competitors & USP

GEICO

Parent Company

Berkshire Hathaway

Category

Auto Insurance

Sector

Banking & Financial Services

Tagline/ Slogan

15 minutes could save you 15% on car insurance

USP

Direct-to-consumer sales model

GEICO STP

Segment

Auto Insurance

Target Group

Car owners-individuals and businesses

Positioning

Private passenger auto insurer with personalized attention to customers

GEICO SWOT Analysis

Strengths

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of GEICO. Strengths are:

1. One of the fastest-growing auto insurers in the U.S, currently second-largest private passenger auto insurer in US
2. Employs over 30,000 associates, provides twenty four-seven, 365 days a year
3. Enjoy high ratings from top agencies for financial strength and claims-paying ability
4. Popular advertising campaigns, large number of advertisements intended to amuse viewers

5. Coverage for over 22 million motor vehicles owned by more than 13 million policy holders

Weaknesses

Here are the weaknesses in the GEICO SWOT Analysis:

1. Direct to customer sales model causes operational constraints
2. Since 2013 dip in insurance penetration i.e. insurance premiums as a percentage of GDP
3. Intense competition in the auto insurance segment
4. Low interest rate scenario in the US hurts the profitability of insurers in the US

Opportunities

Following are the Opportunities in GEICO SWOT Analysis:

1. Involvement in motorsport sponsorships leading to enhanced brand awareness
2. Competitive prices in future
3. Full-fledged expansion into rideshare coverage

Threats

The threats in the SWOT Analysis of GEICO are as mentioned:

1. Highly competitive market
2. Lack of people opting for Insurance
3. Awareness among customers is increasing with more access to information

GEICO Competition

Competitors

Below are the top 3 GEICO competitors:

1. Amica Mutual Insurance
2. Liberty Mutual Insurance
3. 21st Century Insurance