Insurance company business plan
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The main thing about the business plan of the insurance company in the year
Opening an insurance company: looking for a niche
Competition in the insurance business is one of the highest on the service market. But despite this depressing fact, an entrepreneur who decides to build a business on insurance has every chance of succeeding. The main thing is to choose the right niche for your activity and competently approach the opening of your own insurance company. The introduction of new insurance services in this industry, such as insurance of financial risks in shared construction, insurance of ownership of real estate, allow newcomers to this business to count on a successful outcome of the case.
The main difficulty for those who are planning to open an insurance company from scratch is the presence of a solid authorized capital, the minimum size of which is 20 million rubles. If you expect to provide life insurance services, then this amount should be even higher. It should also be noted that when registering a legal entity, it is allowed to indicate only one type of activity in the charter - actually, insurance (or several of its types).
Profits at an insurance company depend on how efficiently your insurance agents work. Entrepreneurs planning to start an insurance business should remember that an insurance agent is the core of your company. And there should be a lot of such people in your insurance company. During the first year of work, you need to recruit at least a hundred intelligent employees, and preferably experienced and qualified specialists. It is clear that professionals are not lying on the street, and you will have to either lure them away from competing firms, or search through advertisements. The extreme option is to recruit inexperienced employees and actively train them.
There are any options for the insurance business - you can open your own insurance store or auto insurance company, the main thing is that the level of service in your company is at its best. But in order for your potential customers to know about this, you need to promote the company. For example, if you decide to open your own auto insurance, then you need to promote services among the appropriate audience - at car markets, in car dealerships, in those places where cars are registered. Accordingly, in order to find clients who want to issue a financial guarantee, that is, buy a liability insurance policy, you need to look in completely different places.
Organization of work with clients in an insurance company is also of great importance. In order to avoid subsequent serious proceedings, it is necessary to develop a competent agency agreement when working in an insurance company. If you want to avoid annoying blunders and open your own insurance company, a company that will function effectively in the insurance market, be sure to use the professional business plan of the insurance company. Relying on it, you will be able to understand many of the intricacies of doing such a difficult business.
A ready-made business plan of an insurance company from scratch with examples of calculations for opening
A professional business plan for an insurance company will allow you to pay attention to the obstacles and benefits of this popular direction. Life, property, health insurance is a serious business, and the competition in this industry is great. You should be puzzled in advance of what exactly your company will be able to attract potential customers. Any insurance organization must clearly calculate in advance the benefits and the ability to provide its clients with insurance payments on time.
Despite the fact that the insurance market is sufficiently developed, the current situation in this sector is such that opening a new insurance agency can be a profitable idea based on the needs of the target audience.
In the capital and other large cities, jewelry companies often apply for insurance services. Insurance of financial risks arising during the joint construction of residential or non-residential objects is in demand in megalopolises. You can always find your niche for opening an agency by conducting a thorough analysis of the insurance market of available services. To do this, taking into account all the features outlined below, create a business plan for an insurance agency. One of the possible options is a franchise or a branch of an already popular agency. This project could be a good launching pad in the future for a new and independent agency.
Features of the project business plan of the insurance agency
The essence of the project is to create an agency for insurance of life and health, property and other valuables. The main goal of the business plan is to assess the viability and economic efficiency of a project to create an insurance agency from scratch. The plan can be used as a commercial proposal when negotiating with a potential investor or when obtaining a commercial loan.
The project is designed for 2 years.
During this period it is planned to achieve such goals
- creating a profitable business;
- meeting the needs of the target audience in the field of life and property insurance, both individuals and legal entities;
- getting high profits.
The main financial aspects of the new business are as follows:
- the period within which the company will recoup all the initial investments and reach the level of profitability - 2 years. Under favorable conditions - earlier;
- the total cost of the project (the size of the commercial loan, which is planned to be issued at the beginning of the activity) - 1 million 200 thousand rubles;
Potential businessmen ask themselves the question - is it possible in the current conditions to open an insurance company that can bring profit and perform its main function as efficiently as possible? To ensure a company's profitability, it is necessary to understand the specifics of the work of the insurance industry. On the other hand, to get started with an insurance company, you will need a noticeably smaller amount in comparison with other ways of earning money.
The essence of the insurance business
Insurance is a method of compensation for damage suffered by the client of the respective company (natural or legal person) by distributing the financial burden between the participants of the existing system. In any branch of human activity there is a risk of incurring losses due to natural disasters, accidents and other situations (for example, damage to property or failure to comply with the terms of the contract). It is insurance companies that are called upon to minimize losses from situations prescribed in the terms of the contract.
An agreement is concluded between the policyholder (client) and the insurer (service provider), providing for the protection of the rights of the persons registered in it, if an insured event arises that can lead to financial losses. According to the terms of the contract, the policyholder must pay a periodically determined amount (insurance premium), which goes to the general fund. After investigating all the circumstances, the client is entitled to receive the insurance claim.
Benefits of starting your own insurance company
With an increase in income and an improvement in the well-being of the population, the demand for services designed to protect citizens from unforeseen property losses and damage to health also increases. Similarly, the life insurance of a citizen is carried out, who can be sure that his family will not be left without money in case of death. Other advantages of opening an insurance company:
- The most simple scheme of work - the client pays a certain amount in equal installments every month. The funds may not be useful at all, or may be needed by another client;
- Does not require a lot of space to open a company office. Agents can perform their duties outside the rented premises;
- The minimum staff is about 10-20 people, which necessarily includes a manager, lawyer, accountant, insurance agents.
Development of a business plan for an insurance company
The main purpose of the plan is to assess the effectiveness of the insurance company project. This document can be used in negotiations with potential creditors and investors. The standard term for which the plan is calculated is two years. For them, the company must achieve the implementation of several goals:
- Getting stable and high profits;
- Achieving profitability;
- Full satisfaction of clients' needs in the field of insurance of various types of risks.
The plan can be completed faster if the market is favorable for the development of the relevant business. When drawing up a plan, it is better to focus on only one type of insurance in order to facilitate entry into the service market.
The insurance niche is filled with competitors, but despite this, you can open a new company based on the needs of the population. Finding an underexploited niche is easy and requires a thorough market analysis of your city. Almost every time there is a sphere in which there are no agencies yet, or they do not enjoy the trust of the population. The business plan of the insurance organization is created with the study of all the key nuances of the business.
The relevance of the enterprise is underlined by the following circumstances:
- High profitability.
- Perspective, lots of opportunities for development.
- High demand for services.
- A variety of activities and business formats.
- State support for the industry.
- Moderate competition.
Step by Step Business Plan
In order to open an insurance company, you must go through the mandatory steps, each must be treated with the utmost seriousness. Business plan stages:
- Registration, registration of licenses.
- Rent of premises for office equipment.
- Purchase of equipment and furniture.
- Recruiting professional staff.
Let's consider each item in more detail.
To open this type of activity, you must register a legal entity. You can choose any form: LLC (limited liability company), CJSC or OJSC (closed or open joint stock company).
To register an LLC you need the following documents:
- Application form Р11001.
- Charter of the organization in duplicate.
- Organization creation protocol.
- A receipt for payment of the state duty (4,000 rubles).
Download free business plans from a special catalog: "BEST FREE RUNET BUSINESS PLANS"!
Attention! The free business plan offered for download below is an example. The business plan that best suits your business conditions needs to be created with the help of specialists.
When opening an insurance company, you need to understand that the Russian insurance market is well developed. Most consumers are used to trusting proven companies with a long history, and a young company can face great difficulties.
Any project should be started with planning - drawing up a business plan. At the same time, it is necessary to define a special segment in the insurance market - an unoccupied niche, or a segment in which the supply does not meet the growing demand.
The business plan of the insurance company is drawn up according to the standard structure.
Basic information about the company and the project must be specified:
- - organizational and legal form;
- - field of activity;
- - license;
- - premises;
- - primary costs;
- - net profit;
- - profitability;
- - payback period.
To provide insurance services, you must register as a legal entity, clearly specifying the types of insurance services provided in the charter. The minimum authorized capital will depend on the list of services provided.
The insurance company must also obtain a license. For licensing, it is necessary to go through a certification procedure, which includes confirmation of the qualifications and reputation of top managers, verification of constituent documents and documentation describing the types of planned insurance activities.
Description of the industry and company products
It is necessary to study the ratings of the largest insurers and insurance products of the leading companies that are most popular in the industry.
Indicate the demand for your insurance services in this region and in the selected segment of the insurance market. Put emphasis on a wide range of services, flexible pricing policy, staff qualifications, service, individual approach.