Business plan for an insurance company. Development of a business plan for an insurance company

6.1. Organization of insurance and characteristics of insurance flows

6.2. Areas, forms and types of insurance. Insurance market

6.1. Organization of insurance and characteristics of insurance flows

The entrepreneurial sphere and human activity are constantly associated with risks - natural, entrepreneurial, financial, etc. As a result of a natural disaster or a certain unforeseen event, damage can be caused to individuals and legal entities. At the same time, there is a question about the source of his compensation. Possible two options. The first is that this damage was covered by the financial resources that are in circulation with this subject. However, this means their distraction from their main purpose - ensuring life and production. The consequences of such a distraction depend on the amount of damage and can manifest itself either in a reduction in the growth of production and the scale of life, or in their reduction, or even cessation. Those. this option is very risky. The second option is to create special targeted resources designed to compensate for losses - reserve insurance funds.

The creation of reserve insurance funds, in turn, can be carried out in three forms:

self-insurance funds;

centralized insurance coverage;

collective insurance funds.

self-insurance based on individual responsibility and lies in the fact that each legal and individual forms its own insurance (reserve) funds using its own resources and income. This is an expensive and irrational form.

Centralized insurance provision based on state responsibility and provides for compensation for losses at the expense of national funds. At the same time, part of these funds is allocated to separate funds, for example, the reserve fund of the Cabinet of Ministers. At the same time, the insurance liability of the state is limited to extraordinary events, because public finances are intended to ensure the functions of the state, to which insurance does not belong. The insurance coverage of the current activities of legal entities and individuals is their prerogative and cannot be fully transferred to the state. Creation collective insurance funds, those. insurance based on solidary responsibility of the participants of these funds. The essence of insurance relations lies in the fact that the formation of insurance funds is carried out at the expense of contributions from all participants, and compensation for losses from these funds is carried out for those who have experienced them due to certain events and circumstances.

Insurance is the most expedient, economical, efficient and rational form of creating insurance funds.

Insurance - is a system of exchange and redistribution relations regarding the formation and use collective insurance funds on the basis of joint and several liability.

From the positions of the targeted formation and use of insurancefunds- it is a redistributive relationship between thoseentities that paid insurance premiums, and those who receive compensation for losses. In terms of relationshipsindividual entities with insurance companies-it's a price to avoidrisk (payment for rest), i.e. exchange relations. The placement of insurance funds in the financial market reflects the relationship regarding the trade in temporarily free financial resources, i.e. redistribution of resources between insurance participants and other subjects of financial relations.

The organization of the insurance business is based on the allocation of subjects of insurance and forms of insurance relations.

Main subjects insurance is the insurer, the policyholder and the insured person.

Insurer- a legal entity - an insurance company that operates on the basis of an appropriate license, incurring obligations to create a collective insurance fund and pay out insurance compensation from it. According to the method of financial activity, the insurer is an ordinary business structure that operates on the basis of commercial calculation. According to the subject of activity (financial resources), the insurer is a financial institution.

Policyholder- a legal or natural person who, on the basis of an appropriate agreement with the insurer, pays insurance premiums to the insurance fund.

Insured person- a legal or natural person who owns the insurance indemnity upon the occurrence of an insured event. In addition, such an entity may be singled out as the recipient of insurance compensation in cases where it cannot be received by the insured person.

Relations insurance are quite diverse. As a rule, they are two- or three-sided. Bilateral relations are formed between the insurer and the insured, who at the same time is the insured. Tripartite relations arise between the insurer, the policyholder and the insured person.

In some cases, several insurers may be involved in insurance relations. This is based on two forms of insurance relationships: co-insurance and reinsurance. coinsurance - this is the participation in insurance of several insurers at once. Reinsurance is the transfer of an insurance contract from one insurer to another.

Insurance payments - this is a lump-sum or staged transfer of funds by the insured to the insurer. They are the source of the formation of both the collective insurance fund and the income of insurance companies. Insurance payments are made on the basis of insurance rates- the amount of payment from the unit of the sum insured. The insurance rate consists of two parts - the net rate and the load. The net rate reflects that part of the tariff, which is intended for the payment of insurance compensation. It depends on overall dimensions insurance indemnity (determined on the basis of statistical studies on the number of insured events and the average cost of indemnity per event) and the number of policyholders covered by this type of insurance. The load reflects the costs of the insurer associated with the conduct of insurance, and its profit.

The insurance rate is the price of insurance. This is the main factor of competition in the insurance market. The more insurers are covered, the lower the costs of the insurer, the lower the insurance rate and the greater the opportunities for attracting new customers.

Insurance compensation- this is the payment by the insurer to the insured (or recipient) of the full or partial amount of damage. The amount of insurance indemnity depends on two factors - the sum insured and the insured loss. Sum insured characterizes the scale of this insurance operation, i.e. How much is the property insured for? This amount is determined, on the one hand, by the valuation of the insurance object, and on the other hand, by the capabilities and wishes of the insured. The ratio of the sum insured to the valuation of the object of insurance characterizes insurancesecurity, which cannot exceed 100%. insurance loss represents the value of the losses caused to the insured.

There are different systems for determining the amount of insurance compensation. The main methods are full and proportional liability. If the insurer is fully liable, the insurance indemnity is paid in the amount of the damage caused, but not more than the sum insured. With a proportional system, liability is distributed between the insurer and the insured in proportion, which reflects the ratio between the sum insured and the value of the insurance object. For example, if the sum insured is half of the value of the insurance object, then the insured person will be paid an insurance indemnity in the amount of 50% of the amount of damage caused.

Reinsurance, as a rule, it is not accompanied by cash flows associated with the movement of funds of the insurance fund between two insurers. In the relationship between the insurer and the reinsurer, there are cash flows that characterize the financial relationship between them regarding the purchase and sale of insurance contracts. As a rule, they are carried out in the form of a commission fee. These relationships do not apply to insurance cash flows, since they do not characterize the movement of insurance funds.

Relationship with the financial market characterize the placement of temporarily free funds of insurance funds on it and the receipt of income from this. These revenues are divided into two parts. One of them forms the income of insurance companies and represents a certain part of their profits. The second part goes directly to the formation of insurance funds. It characterizes the reduction in the cost of insurance for policyholders through the use of their funds (insurance payments) in the financial market. This is an important component of the rational and efficient use of the financial resources of the country as a whole.

Insurance relations between the subjects of insurance and cash flows are regulated by the relevant agreements between the insurer and the insured, which have legal force. The document that certifies the fact of insurance is called insurance policy (certificate). It is issued by the insurer after paying the insurance premium (one-time or first). The insurance policy specifies the object and type of insurance, the terms of the contract and insured events. Distinguish terms "insured event" and "insured event". Insurancehappening- this is possible event, the occurrence of which may cause damage. It characterizes a certain risk against which insurance is carried out. insurance event represents an event that actually happened. It must be officially registered. Those. an insured event is a possible event, and an insured event is something that has taken place.

Auto insurance. How to start an insurance business

The insurance business in Russia is one of the few areas that, even today, during a protracted economic downturn, does not lose its relevance. Therefore, in this publication, we would like to consider the question of interest to many how to become an auto insurance agent.

Let's try to figure it out

Before talking about the steps that you need to take in order to start this business, you need to decide how exactly you want to implement it. To do this, you need to answer the following questions:
Do you want to be a company agent or represent the interests of several?
Do you have enough resources to implement this venture?
What kind of car insurance services do you want to provide?
And only after you determine all these nuances, you can begin to draw up a business plan, and calculate your potential profit.
Well, now, the actual plan itself is how to become an auto insurance agent.
1. Analyze the market and determine the range of potential companies with which you would like to cooperate;
2. Organize contacts with selected companies, get a list required documents. Study it and prepare the complete package;
3. Make up your resume, try to describe in detail your experience and personal qualities that allow you to work in this field;
4. Attend an interview and try to make the best impression;
After all the stages are completed, you can start your activity. You can start your activity! In order for your business to be successful, attend sales trainings, study all the information that will help you master the technologies of attracting new customers. It is necessary to do this, even if you consider yourself the owner of such an experience.

Auto insurance as a business

After the initial stage in the career of an insurance broker has been completed, it's time to think about how to reach the next stage and open an insurance contract sales office. According to many experts, auto insurance has the greatest potential in the range of insurance products.
In theoretical terms, the insurance process is a kind of relationship between the insured and the insurer, who are interested in protecting their property interests and liability from any unpleasant consequences. For this, an insurance contract is concluded between the parties, which specifies the amount of the contribution, the amount of payments and the procedure for their implementation.
On the other hand, the obligation of the insurer is to form a certain insurance fund, from which, in the event of an insured event, the insured pays compensation within the framework specified in the contract.
When thinking about how to open auto insurance, whether it is an office representative office or a newly created company, it is important to understand that the goal of the insurer, like any entrepreneur, is profit. In this case, its volume will completely depend on the number of transactions concluded, namely, on the volume of sales of CASCO and OSAGO policies. In turn, profit, as well as the size of the insurance fund, is a guarantee of the stability of the company.
Based on practice Russian companies In order to succeed, you need to work in several directions at once. This is due to the fact that, firstly, sales of OSAGO are strictly regulated by the current legislation. And since in this case the insurer cannot influence final price insurance product, then, in the opinion of most experts and analysts, the business of selling CTP policies only is not profitable from the outset. Secondly, such a multi-purpose project has a better chance of success from a commercial point of view.
On the other hand, the implementation of CASCO policies has a deeper potential than just the implementation of insurance contracts. So, in this case, the entrepreneur has more freedom in the formation of tariffs and coefficients.
But even in this case, it is impossible to say for sure which car insurance is better from a business point of view. Both programs have their own nuances. So OAGO practically does not make a profit, but CASCO has a low level of popularity associated with its high cost.
The combination of these two forms is considered the most rational way of doing business. In addition, as an alternative income, you can consider providing additional services, such as:
Services of an expert and appraiser;
Advisory assistance after an accident;
Technical assistance;
Other insurance products
The listed services can be added as additional options in the CASCO insurance policy.
It was general concepts about auto insurance products. Now let's talk more specifically.

How to open auto insurance (office)

In order to open a point for the sale of CASCO and OSAGO policies, you must first choose the right premises. In order for your costs to justify themselves, your office should simply be located in a good walk-through place, and where possible a large number of your potential clients.
According to most businessmen, before entering the new level and wondering how to open a car insurance office, you need to carefully calculate everything. Otherwise, the organized enterprise may not pay back the investment, and the novice businessman will fail.
A good place to open an auto insurance office today can be various shopping centers, business centers and other similar places.

What documents are needed for car insurance

Like any other, auto insurance as a business is, first of all, a registered company, the form of ownership of which is selected depending on the goals and scale of the project being implemented.
If we are talking about the creation of an insurance company, in this case, in addition to registering a legal entity, an appropriate license will be required, which can be obtained only with a fully paid authorized capital companies in the amount of at least 120 million rubles.
In the event that an entrepreneur is going to operate as an insurance agency, which, in fact, involves the conduct of an intermediary business, the following will be necessary:
Register an LLC or sole proprietorship;
Conclude agency agreements with partner insurance companies;
rent an office;
What documents are needed for auto insurance, it seems to us, is quite clear.

How to Become a Home Based Auto Insurance Agent

Modern technical capabilities in combination with changes in insurance legislation and the introduction of electronic certificates, has led to the fact that today it is possible to conduct an insurance business without leaving home.
If you are thinking about how to become an auto insurance agent at home, then the answer is obvious. You need to create a thematic portal through which you can invite all its visitors to offer your insurance offers.
However, one should not think that such a business concept will automatically generate income. Working through the Internet is a labor that takes not only time, but also requires a constant investment of other resources, such as money and a constantly updated knowledge base of the owner of such a business.
At the end of the publication, I would like to dwell on one more important point. When choosing auto insurance as a field of activity, which companies are better to choose as a partner.
In fact, when answering this question, it is very difficult to give specific recommendations, but we want to highlight a certain group of criteria that can be used when choosing a business partner.
The insurance company whose insurance products you are going to sell must have:
reliable reputation;
stable history;
comfortable conditions cooperation;
an extensive branch network.
This is not the whole list of aspects to which you should pay attention. Nevertheless, even this is enough to understand in which direction it is necessary to move on.

Business plan for opening an insurance company. How to open an insurance company?
Nowadays, the business of providing insurance services is quite developed and it is not so easy to get into it. Significant investments are required, only the authorized capital must be more than 20,000,000 rubles. this is taking into account the fact that you do not plan to engage in life insurance, and if you do, the amount will increase.

Insurance company development plan.
The next stage in the organization of an insurance company will be the registration of a company, it can be an LLC, CJSC, OJSC or OVS - a mutual insurance company. The charter requires you to specify the type of activity of the company and list the types of insurance that you intend to deal with. As well as specify the services of peer review.

Obtaining a license to provide insurance services.
Documents for obtaining a license:

1. Your founding documents
2. Insurance rules
3. Business plan for the development of your insurance company
4. Tariff calculations
5. Documents on education and previous places work CEO to confirm qualifications.

Initial investment in the insurance business.
In addition to the authorized capital, you will need money to open it, which is about another 15,000,000. This money will be used to buy or rent premises, obtain a license, as well as pay staff salaries and advertise the company.

Insurance company premises.
The best option for your business plan would be to open several offices. First, the main office will be located in the center and have an area of ​​about 500 m2. The second offices will be representative offices, which will be distributed over the districts of the city, but near the main streets, their area is about 50 m2. Also, if your insurance company will be engaged in peer review, it is better to rent a separate office for experts. Do not forget that all premises must be designed in a corporate style.
Annual office rental costs, approximately 3,000,000 rubles.

Insurance company employees.
The insurance company must be in constant development and search for new customers. Therefore, try not to “breed” the office of managers, but recruit more intelligent agents who will move and work on the “street”.
Give your agents a purpose. Work plan.
If you are in the auto insurance business, then your agents should be present in places where car sales are concentrated, these are auto markets, in the traffic police area, etc. It’s also not bad to negotiate with car dealerships and “plant” your agent there. That is, close cooperation with the right firms.
Create a package of services that your agents will offer and that will set you apart from your competitors.
The salary of an insurance agent should consist of a guaranteed part - this is a smaller part, as well as a good percentage of sales - this is a large part, for the desire to earn.
The annual salary fund of the insurance company is about 4,000,000 rubles.

For the development of an insurance company, it is required to provide a profitable package of services for customers.
It is required to hire the best agents with sales experience. Over time, increase the staff of agents to 150 people. It is best to offer voluntary insurance after mandatory, the so-called cross-selling.

The insurance business can be safely classified as complex. It requires serious financial investments and good awareness in the field of insurance, and 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'll talk about what insurance services exist, how to open your own insurance company and in what form it 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. On 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 activities is quite long - it can last from six months to a year, or even more. To apply for a license, you need to 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 of the CEO of the organization will be subject to a thorough check. If all documents are approved, you will be granted a license, and the created organization will be entered in the unified register of insurance companies.

Types of insurance services

All types of insurance are fixed by law in each country. In fact, you can insure anything, if it falls under one of the existing species insurance. The business relationship 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 around 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 rooms, pay attention not only to their technical condition, but also on 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 are 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 " 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 a 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 any insurance company can become a branch. Quite stringent conditions and restrictions are put forward, first of all, for foreign organizations. Some of them:

1. 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;
2. in the event of disputes or claims between customers and Russian branch foreign insurance company, the case will be considered by the court Russian Federation, and not the court of the country in which the parent company is located;
3. 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.

Russian insurance services are well developed. And this must be taken into account when drawing up a business plan for an insurance company, since most people are used to using the services of trusted agencies with a long history. A young company at the initial stage of its formation may face great difficulties. In order to minimize many problems, it is first of all necessary to determine a special segment of the market - an insurance niche that is not yet occupied in the city and nearby areas, and, moreover, satisfies the growing demand of the consumer. The business plan of an insurance company is drawn up from scratch according to the standard structure.

Summary

Perfect Business Support is a full service agency for the insurance industry. Ideal offers a wide range of support services designed 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 goal of an insurance company business plan is to provide the client with the best business support services. 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 clients.

Ideal has two strong competitive advantages. The first is knowledge of the insurance industry. The owner's experience in the industry 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:

Services

An insurance company business plan 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 has great importance if the support team has an industry 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 of the business plan 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 a direct mail campaign targeting local insurance agents and brokers. The mail campaign will provide everyone potential clients information about Ideal offers.

Marketing Approach

The marketing mix of an insurance company business plan 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.

The 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 opening an insurance company, it is necessary to register entity(LLC or CJSC). The size of the authorized capital of the new organization depends on which types of insurance will be covered by the company's activities. If the company's services include customer life insurance, then authorized capital should be more. 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 the financial calculations of an 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.

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.

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.