Insurance company business plan structure. Opening an insurance company

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 regarding 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 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: a complete package of 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, 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;
• vehicle insurance (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 a big city, then ideally you should open at least one office in each area. 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 a decent salary. 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:

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 clients and the Russian branch of a foreign insurance company, the cases will be considered by the court of the Russian Federation, and not by the court of the country in which the parent company is located;
3. it is possible to open a branch of a foreign insurance company in Russia only if the company has worked in the insurance market of various types for at least five years, in the life insurance market for at least eight years.

To independently open an insurance company from scratch, significant financial investments will be required, the payback of which will take at least four years. For successful work in this area, the company must include in its range the maximum range of services that are directly or indirectly related to the main activity. This includes protection against risks for people and property, and expert work on the assessment of insured events.

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Services

The range of services provided by the insurance agency, focused on legal entities:

The range of basic insurance agency services targeted at individuals:

Relevance

Circumstances that determine the attractiveness of the insurance business:

• high profitability;
• perspective;
• significant demand for insurance services;
• variety of activities and business formats;
• government support for the industry;
• moderate competition.

Description and analysis of the market

The main trends of the Russian insurance market:

1. In recent years, the following types of insurance have been in high demand: life, accident, property, and financial risks.
2. At the end of 2016, the total authorized capital of domestic insurers amounted to 216.5 billion rubles, and a year earlier it was 189.2. There is a trend of consolidation of market participants both in terms of the size of the joint-stock fund and in terms of premiums. In 2016, the average capitalization of firms increased from 566 to 842 million rubles.
3. As of December 2016, there were 251 insurance companies and 5 specialized reinsurance companies operating in Russia. At the end of 2017, their total number did not exceed 200 (including medical ones).
4. Market leaders: PJSC Rosgosstrakh, JSC SOGAZ, PJSC Ingosstrakh.
5. The growth trend of the concentration indicator has continued in relation to companies above the TOP 10. Strengthening of this parameter is observed for all types, with the exception of business risk insurance.
6. More than 70% of market participants have a share capital of up to 479 million rubles.
7. The structure of premiums of domestic companies is dominated by voluntary liability insurance (about 40%) and property insurance (about 20%).
8. In 2016, the amount of insurance premiums of agencies amounted to 1,180.63 billion rubles. For the same period, the amount of payments amounted to 505.8 billion rubles.
9. There is a predominance of the following sales channels for insurance products: direct sales (30%), through agents (30%), in banks (25%).
10. The insurance market is concentrated in Moscow and the Moscow region.
11. Today, the state of the insurance industry in Russia can be diagnosed as stable.

Photo gallery

Market structure by authorized capital in 2015 and 2016 Concentration indicator of the insurance market for the period from 2010 to 2016 Key performance indicators of the insurance market in dynamics (from 2010 to 2016) The ratio of the rates of insurance premiums and payments (by quarters for 2013-2016) Structure of types of insurance and premiums of companies (in 2014-2016) Sales channels for insurance products in 2016 and 2015

The target audience

The target audience of an insurance company can be very diverse, it depends on:

• agency specialization;
• the range of services provided;
• pricing policy;
• location of company branches, etc.

The main consumers of insurance services from among legal entities:

• industrial enterprises;
• trading companies;
• financial and credit institutions;
• agricultural enterprises;
• organizations operating in the service sector.

According to the level of income received, all consumers can be divided into:

• the poor (including pensioners, families with many children, students, people with low wages, etc.);
• middle class (for example, car owners, tourists, small entrepreneurs);
• rich (including successful big businessmen, owners of luxury real estate, vehicles, etc.).

A businessman can focus the activities of his own insurance both on all types of customers and on a certain category of consumers.

Competitive advantages

In order for an insurance company to stay afloat and function successfully for many years, it must have the following key competitive advantages:

• well-known and promoted brand;
• well-thought-out assortment, taking into account the peculiarities of the local market, the proposed location of the agency;
• availability of both compulsory and voluntary insurance programs;
• competent pricing policy;
• a sufficient number of competent agents and other employees;
• the location of the company's branches in places with high traffic of the target audience;
• prompt and courteous service;
• active work of insurance agents with potential clients;
• positive customer feedback.

Advertising campaign

1. Branding. An entrepreneur must take care of creating a bright trademark and logo.
2. Outdoor advertising. Placement of banners, streamers, billboards and other structures in crowded places.
3. Corporate website. It should be a resource created and developed by a team of professionals. It contains information about the company, insurance products, contact details and other information.
4. Promotions/presentations.
5. Distribution of paper materials (including booklets, brochures, leaflets).
6. Placement of advertisements in newspapers/magazines, local/central television, Internet (for example, banners, contextual advertising).
7. Offering company services to potential customers over the phone.
8. Cooperation with banking organizations, car dealerships, travel agencies and other organizations.

• to yourself;
• its advantages and disadvantages;
• services provided, etc.

Step-by-step instructions for opening

To organize your insurance company in Russia from scratch, you need:

1. Analyze the market for the functioning of the future company.
2. Carefully consider the package of insurance services provided.
3. Create a detailed business plan with calculations.
4. Determine funding sources.
5. Prepare paperwork for registering the company's activities and obtaining a license.
6. Register the agency as a legal entity.
7. Issue a license.
8. Implement company branding.
9. Choose premises for the head office and branches.
10. Conclude purchase and sale / lease agreements for premises.
11. Carry out design, construction, repair and finishing work in the buildings of the insurance agency.
12. Select staff.
13. Organize advanced training/training courses in insurance business.
14. Establish alternative distribution channels for insurance services (through intermediaries).
15. Conduct promotional activities.
16. Grand opening of the head office and branches.

The documents

Key points of the insurance agency registration process:

To register a company, the following papers are submitted to the tax office:

• statement;
• full and abbreviated name of the organization;
• founding documents (including the articles of association and memorandum of association);
• originals and copies of the passports of the founders and the head;
• TIN and registration of the general director;
• paper evidence of the contribution of the amount of the authorized capital;
• documents on the location of the head office of the agency.

The following documents are submitted to the Insurance Market Department under the Central Bank of Russia for obtaining a license:

• a statement expressing the intention of the founders to obtain a certain type of permission to carry out the activities of the agency;
• a package of constituent documents;
• description of the rules, principles and tariffs for the insurance products sold;
• certificate of registration of a legal entity;
• information about the founders;
• information about the general director (autobiography, documents confirming his education, qualifications, work experience, etc.);
• detailed business plan;
• data on internal audit;
• documentary confirmation of the amount of the contributed authorized capital in the required amount;
• receipt of payment of state duty.

It will take about 3-6 months to prepare documents for obtaining an insurer's license and their consideration by the Central Bank of the Russian Federation. The validity of the permit is unlimited and does not require renewal. As a result of successful completion of the process of obtaining a license, the company will be included in the Unified State Register of Insurance Business Entities.

In order for the company's activity not to be suspended, the maximum liability for a particular risk should not exceed 1/10 of the agency's authorized capital.

Room and design

Criteria for choosing premises for the head office of the insurance company and its branches:

Zoning of the central office of the insurance company:

Features of the design and renovation of the office of the insurance agency:

• in the interior it is recommended to use light colors;
• in the decoration of walls, ceilings, floors, etc., it is better to take modern building materials;
• the room should not be overloaded with furniture;
• the office should be spacious, clean and comfortable;
• various posters and banners with information about the insurance products sold should be placed on the walls;
• furniture should have a respectable appearance;
• the central office and branches of the agency are designed in corporate colors and a single style.

Reception area and customer expectations Room for negotiations Room for negotiations Example of a customer service room The waiting area Reception area

Equipment and inventory

Equipment and inventory for equipping an insurance company, consisting of one central office and five branches:

Checkout equipment - 120,000 rubles Equipment of the reception area - 170,000 rubles Furniture in the room for insurance agents - 200,000 rubles Office air conditioner - 40,000 rubles

Staff

Since today in Russia it is problematic to find qualified personnel for an insurance agency, they will have to be trained or “poached” from already established competitors.

The staffing of the company for the central office and five divisions:

Requirements for the main employees of the company - insurance agents:

• higher economic/financial education;
• Experience in the insurance industry is preferred;
• sociability;
• well-delivered speech;
• active life position;
• ability to sell insurance services and negotiate;
• desire to learn;
• presentable appearance;
• Computer knowledge and ability to use office equipment.

The video material raises the question of how to become a professional in the insurance market. It tells where specialists for this field of activity study. Filmed by the channel: "PRO BUSINESS TV".

Financial plan

The subsequent financial planning of the activities of the insurance agency is based on the following information:

How much does it cost to open?

The cost of opening your own insurance agency consists of the following expenses:

Recurring costs

The owner of the insurance company bears the following expenses on a monthly basis:

Income

The performance parameters of the insurance company were determined on the basis of the following data:

Key indicators of business economic efficiency:

Calendar plan

Opening an insurance company on your own will require not only large material investments and knowledge, but also considerable time (8-12 months).

Schedule of the process of implementing the business idea of ​​an insurance agency from scratch:

Risks and payback

External and internal risks of implementing a business project to open an insurance company:

The payback period for the insurance business will be 4-4.5 years.

Business plan

Download business plan

Reviews (4)

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Insurance company business plan

Natalia
I needed a business plan for an insurance company to prepare individual tasks for undergraduate students studying in the direction of "Insurance". Students in the discipline "Fundamentals of functioning of a small business" must acquire the skills of drawing up a business plan. From the downloaded example, I used the given proportions to form the revenue and expenditure parts of the financial plan, as well as to set tariffs and the size of the insurance fund. Students will develop their own version of the business plan for different regions. I will provide links to the sources used. Perhaps in real life they will apply for a service - preparing a business plan in BiPlan. Thanks to you that I had an example close enough to real conditions, which is required for practice-oriented learning.


Natalie, thank you for your detailed review! We are pleased that our work helps future entrepreneurs master the science of planning. This is very important for starting your own business. And thank you for working so closely with students, it is very important!

Insurance company business plan

Olga
Standing on your feet in the face of fierce competition is not an easy task. Your business plan helped me understand how to act in such a situation, due to which I can outperform a competitor and stand out from other companies. I am very grateful to you for all the advice.


Olga, thank you for your gratitude. Indeed, there is fierce competition in the insurance business, but it is more than realistic to work successfully in this market. We hope that our advice will bring tangible results. I wish you success.

Insurance company business plan

Vyacheslav
An old idea is starting to come true. Your business plan helped me sort out some issues. I hope that I managed to correctly perform all the calculations, I tried to rely on the advice of your specialists. Let's see how events develop further.


Vyacheslav, we are glad that we could support you. Now a lot depends on you and your diligence, we are sure that you will succeed and realize your idea. Good luck to you.

The main thing about the business plan of the insurance company

Competition in the insurance business is one of the highest in 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 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.

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 amount 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, the charter is allowed to indicate only one type of activity - in fact, insurance (or several of its types).

At risk

Profits in the insurance company depend on how efficiently your insurance agents will work. Entrepreneurs planning to open an insurance business should remember that the 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 smart employees, and preferably experienced and qualified specialists. It is clear that professionals are not lying on the street, and you will either have to poach them from competing firms or look for them using ads. The last option is to recruit inexperienced employees and actively train them.

There can be 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 it, 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 - in car markets, in car dealerships, in those places where cars are registered. Accordingly, to search for clients who want to issue a financial guarantee, that is, to buy a liability insurance policy, you need to look elsewhere.

The organization of work with clients in an insurance company is also of no small importance. In order to avoid serious litigation later, it is necessary to develop a competent agency agreement when working in an insurance company. If you want to avoid annoying mistakes and open your own insurance company, a company that will function effectively in the insurance market, be sure to use a professional insurance company business plan. Based on it, you will be able to understand many of the intricacies of doing such a difficult job.

A ready-made business plan for an insurance company from scratch with examples of opening calculations

A professional insurance company business plan will allow you to pay attention to the obstacles and benefits of this popular destination. Life, property, health insurance is a serious matter, and the competition in this industry is great. You should be puzzled in advance with 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 customers with insurance payments on time.

The proposed document is also suitable for organizing an insurance broker, it will help you navigate the modern legislative framework, as well as articles of the law that are focused on insurance. Also, special attention should be paid to attracting customers, that is, a well-thought-out marketing position. The selection of personnel is also important, because the number of contracts concluded depends on the ability of a professional to achieve a positive result in communicating with a potential client.

Having studied the information on the organization of an insurance agency, you can see that it is sometimes profitable to establish a branch of an insurance company in order to become a subsidiary of an already popular and promoted insurance company with a well-known brand. This undertaking is promising, especially if you use various property, life, business insurance schemes, that is, provide customers with the opportunity to choose the most appropriate options for an insurance contract.

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The idea of ​​organizing an insurance business requires a careful approach if you want to earn real income. First of all, keep in mind that the business plan of the insurance company should proceed from the fact that you need to conduct a complete analysis of the market for existing insurance services in advance.

Important points of organizing an insurance company:

• - the authorized capital of the establishment of a legal entity must be at least 120 million rubles;
• - only a citizen of the Russian Federation who meets certain requirements can manage the company;
• - insurance activity is allowed only after obtaining a license, in order to obtain permits for the type of activity, insurance rules developed for a particular company will be required;
• - to obtain permission to carry out activities, it is necessary to have a central office of the company.

Decide what type of insurance you will be engaged in, the amount of authorized capital will depend on this. Life insurance will require a capital of 240 million rubles, and for reinsurance at least 480 million rubles.

The main organizational stages.

The Russian market is already crowded with insurance companies. A detailed study of the market will make it possible to find a less filled niche. It would be wiser to choose one of the types of insurance, or services that are only gaining popularity among consumers.

As an idea, you can use, for example, a lightning strike during a thunderstorm or a meteorite fall.

When you have chosen the type of insurance that you will deal with, you should decide on the scale of your company: city, region, whole country. This will depend on the formation of the staffing table.

There is another way to define the scope of activity. Choose a specialization, for example, in water transport.

To do without attracting third-party investments, you will not be able to implement your business plan. It is for this reason that such a document should be as detailed and understandable as possible for future co-founders.

Tune in to the fact that registration of a legal entity is a rather lengthy process. You will also need a license from the Ministry of Finance, which can take four to twelve months to obtain.

The most important thing.

In the insurance business, an important factor is the stable and reasonable motivation of the organizers and their like-minded people to achieve a specific level of sales.

Probably, more important than the authorized captal will be well-chosen personnel, capable of self-motivation and seeing a real perspective before failure. Even in the early stages, pay attention to the psychological aspect.

Your investors should be pre-configured for a long-term placement of their capital and not a quick payback.

For reference.

The number of insurance agencies in Russia has decreased by twenty percent. As of the end of January this year, in a single state. The register of subjects of insurance activity includes 459 insurance agencies, 14 of which are reinsurance agencies.