Insurance company business plan. Insurance company business plan for the provision of insurance agent services Presentation on the topic of an insurance company business plan

07.08.2020

The insurance business can be safely classified as complex. It requires serious financial investments and good knowledge in the insurance industry, and the ever-increasing competition does not let you relax. But, taking into account the fact that the demand for insurance services is only increasing, it is promising and profitable to engage in the insurance business.

Today we will talk about what insurance services exist, how to open your own insurance company and in what form this can be done.

Insurance company business plan

When starting an insurance company or insurance agency, it is important to have a good business plan.

We suggest that you familiarize yourself with a sample business plan for an insurance company taken from a thesis.

How to open an insurance company

Company registration

There is also such an organizational and legal form as a mutual insurance society. Mutual insurance organizations registered in this form are non-profit, so the role of profit in them is a rather controversial and controversial issue.

There are plenty of types of insurance services, and when making an application for OKVED codes, just in case, it is better to indicate all items containing the word “insurance”. In addition to insuring something, you can also engage in various examinations and assessments. Such activities, of course, should also be related to insurance.

Information for Russian entrepreneurs. At the initial stage, you can even indicate those activities that you are not going to engage in immediately when opening a company. So to speak, for the future. However, the exception is life insurance - this type of activity should be decided immediately. If you plan to insure life, then the authorized capital of the enterprise at its opening should be at least 20 million rubles (~ 305 thousand dollars).

Obtaining a license

The process of obtaining a license for insurance activity quite long - it can last from six months to a year, or even more. To apply for a license, you must have the following documents: full package constituent documents; business plan of the organization; the principles of insurance developed by you, which will guide you in your work; tariffs for the provision of insurance services and their calculations.

Not only the submitted documents, but also the qualifications will be subject to a thorough check. CEO organizations. If all documents are approved, you will be granted a license, and the created organization will be included in single register insurance companies.

Types of insurance services

All types of insurance are fixed by law in each country. In fact, anything can be insured if it falls under one of the existing types of insurance. Business relationships between the client and the insurance organization will also be determined by the type of insurance (conditions, tariffs, risks, etc.). The most common types of insurance services:

1. Personal insurance:

health insurance;
insurance against illness and accidents;
life insurance;
children's insurance;
disability insurance;
travel insurance;
pension insurance.

2. Property insurance:

business insurance;
business interruption insurance;
home insurance;
cargo insurance;
insurance Vehicle(air, land, water);
property insurance against fire, storm, flood and other catastrophes;
insurance of other types of property.

3. Liability insurance:

professional liability insurance;
cargo carrier liability insurance;
enterprise liability insurance;
employer liability insurance;
liability insurance of owners of means of transport;
insurance for other types of liability.

4. Insurance of economic risks:

commercial risk insurance;
insurance of legal risks;
political risk insurance;
insurance of technical risks;
insurance of financial and credit risks.

Office space

In the insurance business, you can hardly get by with just one room. Successful insurance companies have one head office - it is located in the city center or close to it and is the largest in terms of area. Count on approximately 500 square meters. Other offices may be much smaller. They are intended only for receiving clients and negotiating with them.

If you are going to work in big city, then ideally they should open at least one office in each district. When choosing premises, pay attention not only to their technical condition, but also to their location - the offices of the insurance company should not be somewhere in dark alleys. If the company plans to engage in expertise and expert assessments, then a separate office should also be allocated for this activity.

To create the image and recognition of the company, it is better to adhere to the developed corporate style in interior design and uniforms of employees in all offices.

Staff

Experienced and professional management is of course very important for a company. But the main driving force in this business is insurance agents. It is they who bring customers to your company, and therefore make a profit. Beginning agents can be hired (if they have the right skills and show promise to become professionals), but at the very beginning of the activity it is very important to get at least a few experienced agents. It is not so easy to do this, because good insurance agents have always been and will be worth their weight in gold. You can only lure them away from other companies by offering better working conditions.

Unlike office workers, insurance agents must be able to work on the street, in the “field conditions”. For example, auto insurance agents should always be located in places related to cars - car markets, car dealerships, etc. Your insurance agents should have clear instructions on what, to whom and how they should offer. And the purpose of their work should be not only the offer of services, but the transformation of potential insurance customers into real ones.

In order for insurance agents to have an incentive to work and develop their skills, you must provide them with decent wages. Usually this is a certain minimum that the agent will receive for any number of deals made + a considerable percentage of sales.

Opening a branch of an insurance company

Along with opening your own insurance company from scratch, it is quite common and profitable to open a branch of an existing insurance company. Both foreign and domestic insurance organizations can act as such companies.

If you want to open a branch of an insurance company, then your cooperation with it will resemble the relationship between a franchisor and a franchisee. You start negotiations with a foreign or domestic insurance company that interests you, and if all the conditions for future cooperation suit both parties, the insurance company provides you with everything you need to operate as a branch. In addition, the insurance company provides a lot of assistance both in the preparation of registration documents and in the process of direct insurance activities. If you are more attracted to being under the patronage of an already existing experienced insurance organization and you are afraid of risks, then this option for starting a business is just for you.

It is also worth noting that not every insurance company can become a branch. Quite stringent conditions and restrictions are put forward, first of all, for foreign organizations. Some of them:

a branch of a foreign company in Russia must comply with the rules of the current Russian legislation in its activities, even if they differ from the rules of the legislation of the "native" country of the foreign company;
in case of occurrence controversial situations or claims between clients and the Russian branch of a foreign insurance company, the cases will be considered by the court Russian Federation, and not the court of the country in which the parent company is located;
you can open a branch of a foreign insurance company in Russia only if the company has worked in the insurance market different types at least five years, in the life insurance market - at least eight years.

The insurance business can hardly be called stable and it is almost impossible to predict its profitability or unprofitability. In this area, there are regularly both recessions and sharp jumps, and this is due to economic instability.

However, insurance has long passed the stage of formation and at the moment is for start-up entrepreneurs. This article provides a comprehensive answer to the question that interests many aspiring entrepreneurs: How to open an insurance company?

Insurance is conditionally divided into several large-scale industries, having studied them in more detail, you need to decide what exactly you will do.

Insurance industries

Entrepreneurial risks (formation of losses, loss of income);
Responsibility (duties).
Personal (human health, life or ability to work).
Social (income level).
property (human material values- cars, crops, animals, houses, etc.).

Insurance - there is a legal or individual cash of a company that, in the event of a certain event ( insured event) undertakes to pay him compensation.

And if a few years ago, insurance by the people, accustomed to relying on chance, was perceived as a useless, incomprehensible procedure, today, many have already appreciated the benefits of this activity and normally relate to this procedure.

And more enterprising individuals earn money on this, but can anyone who wants to open their own insurance company?

Procedure for opening your own insurance company

To open your own insurance company, you will need to carefully consider what exactly you will insure. After that you need to follow a few steps:

and get a license
rent and equip an office space;
dial
attract customers.

Each stage is discussed in more detail below.

Activity registration

For the implementation of insurance activities, you can choose almost any legal form- OJSC, CJSC, LLC. The easiest to design is the last type, namely, for the registration of which you will need to collect a certain package of documents.

Before submitting an application for registration, it is necessary to decide on the name of the company, which must contain In addition to the name of the organization, the circle of founders and the director should already be determined.

You will need to submit to the tax office copies of passports with the originals of all founders and the head, TIN and registration of the latter, Criminal Code, documents on the address of the company, indicate the name of the organization in full and abbreviated form, the size of the authorized capital.

In the process of registration you need to specify the type of activity- insurance with a detailed listing of all its types that you plan to deal with.

Nothing but it needs to be indicated, unless the additional activity is related to the main one, such as evaluation or examination.

Then you need to get a license. The company must meet the following requirements to receive it:

1. Availability of the required amount of authorized capital:

from 25,000 minimum wages when carrying out types of insurance other than life insurance;
if life insurance is also expected, then from 35,000 minimum wages;
from 50,000 minimum wages only for reinsurance.

2. The ratio between the insurance premium and own funds observed:

The maximum responsibility taken on a separate risk does not exceed 1/10 of the total funds of the organization.
Registration on the territory of the Russian Federation.

What documents are required?

To obtain a license, you will need to contact the Department of Insurance Supervision of the Ministry of Finance of the Russian Federation and provide them with the following papers:

insurance documents (business plan, tariffs and insurance rules),
a document confirming the payment of the UK;
registration document;
in the event that the founder contributes property to the account of the management company, it will be necessary to provide an act of its delivery and acceptance;
information about the leader;
balance and calculation of the ratio of assets and liabilities;
application (indicating the name, address, index, contacts of the company).

Search for an office space

For the office you need to find the area from 200 sq. m. if you wish, you can make it larger (up to 400).

The city center is considered the best place in terms of traffic, however, the high cost of renting premises there makes it necessary to look for an alternative.

These can be busy streets, first floors of business centers, the main thing is that the building is not in a residential area. Finding your company should be easy, the presence of a nearby stop of route vehicles or the subway is mandatory.

Let it be an old building, the main thing is that it should be clearly visible from the road and people passing by in buses and cars could notice a large sign with the name of your insurance company.

The office of the company is its face, you should not skimp on repairs, the room should be clean, light, modern, spacious. It is necessary to equip inside a utility room, a manager's office, a customer service room, an area for agents.

The presence of coolers and air conditioners in the hall will give the office solidity. Various posters, brochures with information about rates, a book of complaints and suggestions should also be on the premises.

You will need to purchase office furniture, cabinets, a safe, shelving, office equipment, stationery, expendable materials, printing and more.

Recruitment

Selecting insurance agents You have to decide whether you want to train them yourself or not. In the first case, it is easier to find those who want to, but you will have to spend money on training, and it will be possible to check the effectiveness of such an employee only after training.

In any case, it is necessary to conclude an agreement with the students obliging them to work for you after completing the courses for a certain time, so that the money was not spent in vain.

The second option involves the search for specialists, which can be quite difficult to find. Really good agents will have to be poached from competitors by offering them more flexible schedules and higher percentages of sales.

The minimum staff of the insurance company

director;
about 20 agents at the initial stage (the more there are, the higher the profit);
cleaning woman;
teacher (if it is planned to train candidates).

Customer acquisition

Printing flyers, hanging banners, ads on television, radio - second step.

Third and main- attracting clients by agents. Suppose you are engaged in car insurance, which means that you need to look for customers in car dealerships, car services, parking lots, etc.

Most of the clients are acquired in this “live” way, and the more convincing the agent’s speech sounds, the more there will be those who want to insure their property in your company.

Insurance company business plan

Charter from 20 million rubles.
from 30,000 rubles.
Rent from 100,000 rubles.
Repair, arrangement, purchase of equipment and furniture from 300,000 rubles.
from 250,000 rubles.
Advertising and website from 80,000 rubles.

At the initial stage, you will need to invest from 20,760,000 rubles.

The profitability of the insurance company

Despite the large initial investment The insurance business is considered to be quite a profitable business. With the right organization, selection of qualified employees, an insurance company can pay off in less than four years, provided that 10% remains in the budget from the insurance premium.

Problems encountered in the process of opening and operating an insurance company

In the creation of insurance, there are several main, often encountered difficulties.

1. Lack of start-up capital

This problem can be solved by looking for investors. Before embarking on this business, you need to draw up a successful one that could interest a potential investor and set you apart from the mass of other entrepreneurs.

And about favorable conditions for the investor, do not forget that they should be a little more pleasant and more profitable for him than other similar companies.

2. Lack of quality personnel

Difficulties can also arise at the recruitment stage. There may be many who want to, but those who can really attract customers and raise the company's income are difficult to find. The way out is a search among acquaintances, poaching from competitors, motivation for agents.

3. The probability that many insured events will occur at the same time

It is impossible to predict this moment and only hope remains, that this won't happen. But this fact must be taken into account.

Start your own insurance business quite difficult, but possible having the necessary amount of money or having investors.

To open an insurance company, you will need to obtain a license, and then start looking for employees, paying special attention to their ability to convince and interest. The success of a business, of course, depends on the skill of the manager, but in the insurance business, agents also play an important role.

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Summary

Perfect Support is a full service agency for the insurance industry. Ideal offers wide range support services intended for insurance agents. The ideal will specialize in a few offerings but can do just about anything. While the support services market is competitive, most companies are generic. The ideal will stand out by concentrating on the insurance niche.

The purpose of an insurance company business plan is to provide the client with best services business support. We exist to attract and serve customers. When we stick to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

The ideal has two strengths competitive advantage. The first is knowledge of the insurance industry. Industry experience is invaluable. This experience will allow you to better serve your customers using information about the needs and preferences of customers. In addition, the value of networks based on previous insurance relationships will give the company a big step up in the competition. By establishing relationships with many people in the industry, these professional connections can be leveraged.

The idea is projected to reach profitability by 11 months and will be generating a $44,000 profit by three years.

Composing step by step business plan of the insurance company, good information was obtained about the market and about the general attributes of the most valuable and loyal customers. This information will be used to better understand who is being served, their specific needs, and how Ideal can best communicate with them.

The customer profile consists of the following geographic, demographic and behavioral factors:

Market analysis
		2017	2018	2019	2020	2021
Potential clients	growth
Exclusive Agents	7%	78	83	89	95	102	6,94%
insurance brokers	8%	123	133	144	156	168	8,11%
Other	0%	0	0	0	0	0	0,00%
Total	7,66%	201	216	233	251	270	7,66%

Services

The insurance company example provides the market with a range of support services for insurance agents. Ideal strives to fulfill the following benefits that are important to its customers.

Industry knowledge: agents do not have time to train service personnel with all the complexities of the insurance industry. Therefore, it is of great importance if the service desk has an industrial understanding.
Convenience A: Services must be available when agents need them. In addition, it is difficult to accurately predict when such a need will arise.
Customer service. To build a sustainable business, customers must be 100% satisfied with Ideal's services. This business philosophy will be ingrained in the minds of all employees.

Market trends

The market trend for insurance agents (as well as other service providers) is to outsource non-essential activities, allowing the business to focus on its core competencies. This allows the insurance company's business to focus more precisely on its business model.

Reasons for this trend:

Reduction of overhead costs.
Reduced training costs for non-existent employees.

Market Growth

In the past two years, the service support insurance industry has totaled $498 million. From 2015 to 2017, the industry's growth rate was 5.6%. Over the next three years, the industry is expected to have no problem maintaining this excellent growth.

Another growth driver has been the gradual adoption of insurance as a prudent risk management strategy. With recent unexpected events such as natural disasters and terrorism, the insurance industry is likely to continue to grow as individuals and companies hedge their risks with insurance.

A sample business plan for an insurance company in need of support can be broken down into two segments:

Exclusive agents: they are agents for only one type of insurance, for example, for a state farm. The insurance agent will sell all types of coverage that the State Farm offers, but only state farm insurance. Although the choice is limited here, the advantage of an exclusive agent is that they usually have a very strong relationship with this company, which is good if there are any claims issues.
Insurance Brokers: these agents do not have an exclusive contract with any one insurance company. They may offer insurance from several companies. The benefit of this setup is that they can offer a wider range of service offerings than an agent who only sells one brand of insurance.

Marketing company

The sole purpose is to position the insurance company as the most efficient support service that controls the majority of the market share. Marketing strategy will focus primarily on raising customer awareness of the services offered and then developing client base and finally, work on building customer loyalty and referrals.

The company will use various sources, both the yellow pages and the trade magazine.
The second way of communication is the creation of networks based on industry relations.
The third way is to participate in a regional exhibition, which attracts most of the local agents and brokers.
The final communication method is the direct campaign. mailing list targeted at local insurance agents and brokers. The mail campaign will provide everyone potential clients information about Ideal offers.

Marketing Approach

Consists of approaches to pricing, distribution, advertising and promotion, and customer service.

Pricing A: The pricing scheme will be competitive with other support providers.
Spreading: Services will be offered at the customer's location or office, depending on which customer prefers.
Advertising and promotion: a multi-level marketing campaign will be used to ensure visibility and fairness.
Customer service: managers will be held accountable for achieving these ambitious goals.

Advantages and disadvantages

The insurance company's business plan also reflects the strengths and weak sides within the firm and describes the opportunities and threats facing Ideal.

Advantages of opening an insurance company:

In-depth knowledge of the industry.
Effective, comprehensive employee training program.
Extensive industry network connections.

Disadvantages of opening an insurance agency:

Limited marketing budget to ensure visibility.
Failure to quickly scale to a large increase in demand.
The brand is missing.

Capabilities:

Participation in a growing industry.
Work in the industry, which is required for almost all Russians.

Ability to distribute overheads as the customer base grows.

Competitive advantages

The business plan of the insurance company will position itself as the most experienced support service for insurance services. This positioning will be achieved by exploiting its competitive advantage.

Competitiveness is a specific deep industry knowledge of insurance. Although this specific knowledge will discourage a large market, it makes a small part of the market very attractive.

This in-depth industry knowledge is based on the experience of the head of the firm, held as an independent insurance agent. The owner will collect all this intellectual capital and turn it into curriculum to become organizational knowledge.

Competition consists of many different service companies offering a wide range of services. However, none of them is intended for the insurance industry. While companies that provide services across industries offer adequate service, there is an advantage to hiring a company that caters to the industry and is much more knowledgeable about your specific needs.

Agent buying models mimic long-term relationships. If customers are happy, they tend to stay with the same service provider. There is usually a transitional period for new clients where both parties spend time getting to know each other and have different needs. If it can be done once sooner, then it is more cost effective than switching from provider to provider.

Registration

Before, it is necessary to register a legal entity (LLC or CJSC). Authorized capital new organization depends on what types of insurance the company's activities will cover. If the company's services include life insurance for customers, then the authorized capital should be larger. To carry out insurance activities, it is necessary to obtain an appropriate certificate. We also recommend that you familiarize yourself with the relevant OKVED codes. The process of obtaining a certificate takes from 6 to 12 months.

room

The business plan should describe the premises where the office of the insurance company will be located. The room should have a convenient location. The office building should be adjacent to a parking lot for vehicles, the area of \u200b\u200bwhich can accommodate not only the cars of company employees, but also customers. The area of the premises is determined based on the number of insurance services provided.

The office of the insurance company should be put in proper shape. It is advisable to use the services of designers in interior design. The room should be in a discreet business style. Don't forget about the dress code of the employees. This contributes to the formation of a positive impression of the company.

Financial plan

It is necessary to determine:

fixed assets;
intangible assets;
primary costs;
costs of paying for services of third parties;
labor costs and taxes;
total estimated costs for the year;
profit for the year.
You also need to draw up a summary balance sheet.

This section will present financial calculations insurance company business plan as they relate to marketing activities. An insurance company's expenses and revenues focus on break-even analysis, sales forecasts, expenses, and how they relate to marketing strategy.

Break even analysis

The insurance agency's break-even analysis shows that it would take $15,609 in monthly income to reach the break-even point.

Sales forecast

First month will be used to create an office. This includes choosing a site, buying furniture, and setting up a computer network.

First week of the second month will be used for intensive training of two support staff. There will be sales activity during the last three weeks of the month. From now on, sales will grow steadily.

Fifth month– The last two support staff will be recruited. They will also be trained during the first week of the month and then uploaded.

Sales forecast
	2017	2018	2019
Sales
Exclusive Agents	$ 51049	$ 112548	$ 121458
insurance brokers	$ 59812	$ 125745	$ 134745
Total sale	$ 110861	$ 238293	$ 256203

Direct sales value	2003	2004	2005
Exclusive Agents	$ 7657	$ 16882	$ 18219
insurance brokers	$ 8972	$ 18862	$ 20212
Intermediate direct sales value	$ 16629	$ 35744	$ 38430

Cost Forecast

Marketing spending should be budgeted to be high during the first quarter; a function of wanting to create visibility for the start-up company. After the first quarter, the costs will fluctuate depending on what marketing activities take place during each month.

Marketing budget
	2017	2018	2019
ads	$ 2920	$ 4000	$ 5000
trade shows	$ 2 700	$ 3000	$ 3500
Other	$ 2 025	$ 2250	$ 2500
	----	----	----
General sales and marketing expenses	$ 7645	$ 9250	$ 11 000
Percentage of sales	6,90%	3,88%	4,29%

Risks

Somewhat risky due to the regulatory nature of the insurance industry.
Future competition from franchise support.

As computer technology continues to become more and more efficient and useful, this may reduce the need for support staff services.

The plan for opening an insurance company that you decide to open should begin with the definition of a specific segment, type of activity in an already existing market for relevant services. It is most advantageous to identify an unoccupied niche in the market or a segment in which there is an increased and unsatisfied demand ... for alcohol.

The Russian market of insurance services is characterized by high level employment, which complicates the search for new free niches for the activities of young companies. And yet, focusing on innovative insurance products, it is still possible to search for effective business solutions.

Opening plan

We present to you for free finished example a business plan for opening an insurance company that will help you start your own insurance business.

This example contains all the calculations and tables for a particular city, so in your case all the numbers will, of course, be different.

How to open an insurance company

So, how to open an insurance company? Consider information that will help you in starting this business.

Registration

Doing insurance business legal entities(LLC, CJSC, etc.), the charter of which clearly defines the types of insurance services that they will be engaged in. In addition, the minimum authorized capital of the company is 20 million rubles, which varies upwards depending on the services provided (especially increases when planning life insurance).

Company license and certification

In order for an insurance company to be included in the Unified State Register of Insurance Organizations, that is, to be licensed, it is necessary to undergo a certification procedure, which can last from six months to a year. An important point here is a confirmation of the qualifications of the management of the insurance company: the education and work experience of the general director, his business reputation. You will also need well-composed constituent documentation and clearly formulated insurance rules for each of the types of planned insurance activities.

Investments and expenses upon opening

The initial costs of opening an insurance company, which will be directed to the purchase or lease, as well as the equipment of the company's office, wages and advertising, depending on regional characteristics, will range from half a million to a million dollars.

room

The requirement for the office of an insurance company is quite standard: convenient location, parking for employees and clients, sufficient space (depending on the specifics of the work), its design and dress code for employees. The design of the office determines the first impression of the client about the insurance company, so it should be in a business style, emphasize the solidity and reliability of the company.

Working staff

The composition of employees of an insurance company is usually divided into two groups: office workers− management, legal services, accounting, as well as insurance agents - the "gold reserve" of each insurance company. The formation of a staff of insurance agents, on which the flow of clients of an insurance company depends, is a key personnel task. It is solved either by attracting experienced staff who will need to be granted preferential terms, or through the training of newcomers. Typically, insurance companies seek to combine these two paths, forming a talent pool of experienced and novice employees.

Basic Customer Acquisition Strategies

In the insurance business, it is important to develop targeted advertising strategies, that is, for each type of insurance, to find the most effective types advertising, its placement, etc. For example, for home insurance, it is advantageous to look for clients in areas of new buildings, cottage townships, and on real estate websites.

Low prices for services at the beginning of work is an effective advertising move.

Prospects for this business

The effectiveness of the insurance business depends on the gradual expansion of the list of services provided, which is due to the development of the insurance company. Normal payback period: 3-5 years. If the profit corresponds to 10% of total amount insurance premiums, such a business can be considered successful.

Insurance company business plan. Insurance company business plan for the provision of insurance agent services Presentation on the topic of an insurance company business plan