Well, let me clarify the way I’m explaining this question. I’m explaining what are the external factors under SWOT analysis that affects insurance sector?

What is a SWOT analysis?

SWOT analysis by any company, organization or overall industry is to assess the strengths and weaknesses that lie within the company (Internal factors) and the Opportunities and Threats that exist in the outside environment (External Factors).
Every sector has different internal and external factors affecting its profitability, growth and other aspects. Now, what exactly are the factors affecting the insurance sector?

The Indian insurance sector is going to face challenges like the potential for economic slowdown and ongoing disputes over tariffs and trade rules may cast a shadow on the insurance market outlook.

The Indian insurance industry is about to face:

Competition: Since 100% FDI has been introduced in the latest budget, there are chances that the existing players are about to be hitten by a huge competition and they have ensured their survival. When competition is with global players, it gets tight, which in turn could be a big threat to the Indian insurance sector. Political Factors: What government rules a country is the most crucial factor for the performance of any industry, what policies the government announces directly impact the industry at large. These policies are dynamic in nature and also no one can actually predict what the government is about to announce.
Technology: This is a factor, which not only impacts a particular industry but all the industries in India as Indian industries is not very adaptive, and any technology that should have been adopted at an early stage, is mostly adopted after so much of time lapses. If I say, Indian Industry is backward in terms of technology, though it is developing but not at the pace that is needed.
To conclude, the insurance sector is about to face huge competition and Indian Insurance companies should ensure their survival because the major drawback in the industry is it technology, foreign companies are well-versed with latest technologies which Indian industries, unfortunately, are not.