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 life are constantly associated with risks - natural, entrepreneurial, financial, etc. As a result of a natural disaster or certain unforeseen event, individuals and businesses may suffer damage. At the same time, the question arises about the source of its compensation. There are two possible options. The first is that this damage was covered by the financial resources that are in circulation with this entity. However, this means their diversion from their main purpose - ensuring life and production. The consequences of such diversion depend on the amount of damage and can manifest themselves either in a reduction in the increase in 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 intended 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 It is based on individual responsibility and lies in the fact that each legal entity and individual forms its own insurance (reserve) funds at the expense of its own resources and income. This is an expensive and irrational form.

Centralized insurance coverage It is based on state liability and provides for compensation of 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 emergency events, because public finances are intended to ensure the functions of the state, to which insurance does not belong. Insurance coverage for the current activities of legal entities and individuals is their prerogative and cannot be completely transferred to the state. Creation collective insurance funds, those. insurance is based on solidary responsibility of the participants of these funds. The essence of insurance relations is that the formation of insurance funds is carried out through contributions from all participants, and compensation for losses from these funds is carried out for those who experienced them as a result of certain events and circumstances.

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

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

From the perspective of the targeted formation and use of insurancefunds- these are redistributive relations between thosesubjects who paid insurance premiums and those who receive compensation for losses. From a relationship perspectiveindividual entities with insurance companies-this is the price to pay for avoidancerisk (payment for peace), i.e. exchange relations. The placement of insurance funds on the financial market reflects relations regarding the trade of 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 identification of insurance subjects and forms of insurance relations.

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

Insurer- legal entity - an insurance company that operates on the basis of an appropriate license, undertaking obligations to create a collective insurance fund and pay 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. In terms of its 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 entity or individual who owns the insurance compensation upon the occurrence of an insured event. In addition, a subject may be identified as the recipient of insurance compensation in cases where the insured person cannot receive it.

Relationship Insurances are quite varied. As a rule, they are two- or three-sided. Bilateral relations develop between the insurer and the policyholder, who is also the insured. A tripartite relationship arises between the insurer, the policyholder and the insured.

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

Insurance payments - this is a one-time or gradual transfer of funds by the policyholder to the insurer. They are the source of formation of both the collective insurance fund and the income of insurance companies. Insurance payments are made on the basis insurance rates- the amount of payment per unit of sum insured. The insurance rate consists of two parts - the net rate and the load. The net rate reflects that part of the tariff that is intended for payment of insurance compensation. It depends on the total amount of insurance compensation (determined on the basis of statistical studies on the number of insurance events and the average cost of compensation per event) and the number of policyholders covered by this type of insurance. The load reflects the insurer's expenses associated with 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 policyholders are covered, the lower the insurer's expenses, the lower the insurance rate and the greater the opportunity to attract new clients.

Insurance compensation- is the payment by the insurer to the insured (or recipient) of the full or partial amount of damage. The amount of insurance compensation depends on two factors - the insured amount and the insured loss. Sum insured characterizes the scale of this insurance operation, i.e. for what amount is this or that object insured? This amount is determined, on the one hand, by the valuation of the insurance object, and on the other, by the capabilities and wishes of the insured. The ratio of the insured amount to the valuation of the insurance object characterizes insurancesecurity, which cannot exceed 100%. Insurance loss represents a cost estimate of 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, insurance compensation is paid in the amount of damage caused, but not more than the insured amount. With a proportional system, liability is distributed between the insurer and the insured in a proportion that reflects the relationship between the sum insured and the value of the insurance object. For example, if the insured amount is half the value of the insurance object, then the insured will be paid insurance compensation in the amount of 50% of the amount of damage caused.

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

Relations with the financial market characterize the placement of temporarily free funds of insurance funds on it and the receipt of income from it. These incomes are divided into two parts. One of them generates the income of insurance companies and represents a certain part of their profit. 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 country’s financial resources as a whole.

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

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 economic instability is to blame.

However, insurance has long passed the stage of formation and this moment is for beginning entrepreneurs. This article contains a comprehensive answer to a question that interests many aspiring entrepreneurs: “How to open an insurance company?”

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

Insurance industries

• Business risks (losses, loss of income);
• Responsibility (responsibilities).
• Personal (person’s health, life or ability to work).
• Social (income level).
• Property (human material assets - cars, crops, animals, houses, etc.).

Insurance is a contribution made by legal or an individual funds of the company, which, in the event of a certain event (insured event), undertakes to pay him compensation.

And if just a few years ago insurance was perceived by people accustomed to hoping for chance as a useless, incomprehensible procedure, Today, many have already appreciated the benefits of this activity and have a normal attitude towards this procedure.

And more enterprising individuals make money from this, but can everyone 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. Then you will need to complete several steps:

• and obtain a license;
• rent and equip office space;
• dial
• attract clients.

We will look at each stage in more detail below.

Registration of activities

To carry out insurance activities, you can choose almost any legal form - OJSC, CJSC, LLC. The easiest to register is the last type, namely, for 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 must already be determined.

You will need to submit it to the tax office copies of passports with originals of all founders and the director, TIN and registration of the latter, the Criminal Code, documents about the address of the company, provide the name of the organization in full and abbreviated form, the amount of the authorized capital.

During registration you will need to indicate the type of activity– insurance with a detailed listing of all its types that you plan to deal with.

There is no need to indicate anything other than it, unless the additional activity is related to the main one, such as assessment or examination.

Afterwards you will need to obtain 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 wage when implementing types of insurance other than life insurance;
• if life insurance is also expected, then from 35,000 minimum wage;
• from 50,000 minimum wage only when carrying out reinsurance.

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

• The maximum liability taken for an individual risk does not exceed 1/10 of the organization’s total funds.
• Registration on the territory of the Russian Federation.

What documents will be required?

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

• insurance documents (business plan, tariffs and insurance rules),
• document confirming payment for the management company;
• registration document;
• if the founder contributes property to the management company’s account, you will need to provide a certificate of its delivery and acceptance;
• information about the manager;
• balance sheet and calculation of the ratio of assets and liabilities;
• application (indicating the name, address, zip code, contacts of the company).

Search for office space

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

The city center is considered the best place for traffic, however, high price renting premises there forces you to look for an alternative.

These could be busy streets, the first floors of business centers, the main thing is that the building is not in a residential area. Finding your company should be easy It is mandatory to have a shuttle or metro stop nearby.

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

A company’s office is its face; you shouldn’t skimp on renovations; the room should be clean, light, modern, and spacious. It is necessary to equip a utility room, a manager’s office, a customer service room, and an area for agents inside.

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

You will need to purchase office furniture, cabinets, a safe, shelving, office equipment, stationery, Consumables, stamps and more.

Recruitment

Selecting insurance agents It’s worth deciding whether you want to train them yourself or not. In the first case, it is easier to find willing people, but you will have to spend money on training, and you will be able 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 is not wasted.

The second option involves searching for specialists, who can be quite difficult to find. Really good agents will have to be lured away from competitors by offering them more flexible hours and larger percentages of sales.

Minimum staff of an insurance company

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

Attracting clients

Printing leaflets, hanging banners, advertising on television, radio - second step.

Third and main– attracting clients by agents. Suppose you are in the business of car insurance, which means you need to look for clients in car dealerships, car service centers, 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.

Insurance company profitability

Despite the large initial investment The insurance business is considered quite a profitable business. At proper organization When selecting qualified employees, an insurance company can pay for itself in less than four years, provided that 10% of the insurance premium remains in the budget.

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

There are several main, frequently encountered difficulties in creating an insurance company.

1. Lack of start-up capital

This problem can be solved by searching for investors. Before starting this business, you need to create a successful one that could interest a potential investor and set you apart from the crowd of other entrepreneurs.

And we shouldn’t forget about the favorable conditions for the investor; they should be a little more pleasant and profitable for him than with other similar companies.

2. Shortage of quality personnel

Difficulties may also arise at the recruitment stage. There may be many people willing, but those who can really attract customers and increase the company’s income are difficult to find. The solution is to search among friends, lure away from competitors, and motivate agents.

3. The likelihood that many insured events will occur simultaneously

It is impossible to predict this moment and we can only hope, that this won't happen. But it is necessary to take this fact into account.

Start your own business in the insurance industry 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 begin to look for employees, paying special attention to their ability to persuade and interest. The success of a business undoubtedly depends on the skill of the manager, but in the insurance business agents also play an important role.

Don’t know how to open an insurance company in Russia on your own and what are the features of doing business in the Russian Federation? Watch the following detailed video:

Business plan for opening an insurance company. How to open an insurance company?
Nowadays, the business of providing insurance services is quite developed and getting into it is not so easy. 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 of organizing 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 indicate the type of activity of the company and list the types of insurance that you intend to engage in. And also indicate expert assessment services.

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

1. Your constituent documents
2. Insurance rules
3. Business plan for the development of your insurance company
4. Tariff calculations
5. Documents about education and previous places of work general director, to confirm qualifications.

Initial investment in the insurance business.
In addition to the authorized capital, you will need money to open, this is about 15,000,000 more. This money will be used to purchase or rent premises, obtain a license, as well as for staff salaries and advertising of the company.

Premises for an insurance company.
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 throughout the city districts, but close to the main streets, their area is about 50 m2. Also, if your insurance company will be engaged in expert assessment, then 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 are approximately RUB 3,000,000.

Insurance company employees.
An insurance company must be in constant development and search for new clients. Therefore, try not to “divorce” the office of managers, but recruit more smart agents who will move and work on the “street”.
Give your agents a purpose. Work plan.
If you are engaged in auto insurance, then your agents should be present in places where cars are sold, these are auto markets, in the traffic police area, etc. It’s also not a bad idea to negotiate with car dealerships and “put” your agent there. That is, close cooperation with the right companies.
Create a package of services that your agents will offer 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, in order to strive to earn money.
The annual salary fund of the insurance company is about 4,000,000 rubles.

To develop an insurance company, it is necessary to provide a profitable package of services to clients.
You need 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 insurance, so-called cross-selling.

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

Today we’ll 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 opening an insurance company or insurance agency, it is important to have a quality business plan.

We invite you to familiarize yourself with a sample business plan for an insurance company, taken from your thesis.

How to open an insurance company

Company registration

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

There are plenty of types of insurance services, and when filling out 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 conduct various examinations and assessments. Such activities, naturally, should also be related to insurance.

Information for Russian entrepreneurs. At the initial stage, you can even indicate those types of activities that you do not intend 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 upon immediately. If you plan to insure life, then the authorized capital of the company when opening it must 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 must have the following documents: complete package constituent documents; business plan of the organization; the insurance principles you have developed that will guide you in your work; tariffs for the provision of insurance services and their calculations.

Not only the documents provided, but also the qualifications of the organization’s general director will be subject to careful verification. 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 established by law in each country. In fact, you can insure anything as long as it falls under one of existing species insurance. The business relationship between the client and the insurance organization will also be determined by the type of insurance (conditions, rates, risks, etc.). The most common types of insurance services:

1. Personal insurance:

• health insurance;
• insurance against illnesses and accidents;
• life insurance;
• children's insurance;
• disability insurance;
• insurance for those traveling abroad;
• pension insurance.

2. Property insurance:

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

3. Liability insurance:

• professional liability insurance;
• cargo carrier liability insurance;
• corporate liability insurance;
• employer's liability insurance;
• liability insurance of vehicle owners;
• insurance of other types of liability.

4. Economic risk insurance:

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

Office premises

IN insurance business you are unlikely to 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 area. Count on about 500 square meters. Other offices may be much smaller. They are intended only to receive clients and negotiate 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 examinations and conduct 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 employee uniforms in all offices.

Staff

Experienced and professional management is, of course, very important for the company. But the main thing driving force in this business they are insurance agents. They are the ones who bring clients to your company, and therefore bring profit. You can also hire novice agents (if they have the necessary skills and show promise of becoming professionals), but at the very beginning of your activity it is very important to get at least a few experienced agents. This is not so easy to do, 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 more favorable working conditions.

Unlike office employees, insurance agents must be able to work on the street, in “field conditions.” For example, agents working with auto insurance should always be 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 goal of their work should be not only to offer services, but to turn potential insurance clients 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 transactions concluded + 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 the franchisor and the franchisee. You begin negotiations with the foreign or domestic insurance company you are interested in, and if all the conditions for future cooperation are satisfactory to both parties, then the insurance company provides you with everything you need to conduct business 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 auspices of an existing experienced insurance organization and are afraid of risks, then this option of starting a business is just for you.

It is also worth noting that not just any insurance company can become a branch. Quite strict 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 current Russian legislation in its activities, even if they differ from the rules of the legislation of the “home” country of the foreign company;
2. in case of occurrence controversial situations or claims between clients and the Russian branch of a 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. It is possible to 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 accustomed to using the services of trusted agencies with a long history. A young company at the initial stage of its formation may encounter great difficulties. In order to minimize many problems, it is necessary first of all to identify a special market segment - an insurance niche that is not yet occupied in the city and surrounding areas, and that also satisfies the growing consumer demand. A business plan for an insurance company from scratch is drawn up according to a standard structure.

Summary

Ideal Business Support is a full service agency for the insurance industry. Ideal offers a wide range of support services designed for insurance agents. An ideal will specialize in a few offerings, but can do almost everything. While the market for support services is competitive, most companies are generalists. The ideal will stand out by concentrating on the insurance niche.

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

The 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 by leveraging information about customer needs and preferences. Additionally, the value of networks based on previous insurance relationships will give the company a big head start in the competition. By establishing relationships with many people in the industry, you can leverage these professional connections.

The idea is projected to reach profitability by month 11 and generate $44,000 in 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 better communicate with them.

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

Market analysis
		2017	2018	2019	2020	2021
Potential clients	height
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

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

• Industry knowledge: Agents don't have time to train service staff on all the complexities of the insurance industry. Therefore it has great importance, if the support team has industrial understanding.
• Convenience: 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 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:

• Reduced overhead costs.
• Reduced training costs for non-existent employees.

Market growth

During the last two years, the insurance support services industry was worth $498 million. From 2015 to 2017, the industry growth rate was 5.6%. Over the next three years, the industry is expected to have no problem maintaining this excellent growth.

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

A sample business plan for an insurance company that needs support can be divided into two segments:

• Exclusive agents: these are agents for only one type of insurance, for example, state farm. The insurance agent will sell all types of coverage that State Farm offers, but only State Farm insurance. While the choices here are limited, the advantage of an exclusive agent is that they usually have a very strong relationship with that 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 multiple companies. The benefit of this setup is that they can offer a broader 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 commands the majority of the market share. The marketing strategy will focus primarily on creating customer awareness of the services offered, then developing the customer base and finally working to build customer loyalty and referrals.

• The company will use various sources, both yellow pages and trade magazine.
• The second way to communicate is through networking based on industry relationships.
• The third way is to participate in a regional exhibition, which attracts most local agents and brokers.
• The last method of communication is a direct campaign mailing list, aimed at local insurance agents and brokers. The email campaign will provide all potential customers with information about Ideal's offerings.

Marketing approach

The marketing mix of an insurance company's business plan consists of approaches to pricing, distribution, advertising and promotion, and customer service.

• Pricing: Pricing scheme will be competitive with other support service providers.
• Spreading: Services will be offered at the client's place of business or in the office, whichever the client prefers.
• Advertising and promotion: a multi-level marketing campaign will be used to ensure visibility and equity.
• Customer service: managers will be held accountable for achieving these ambitious goals.

Advantages and disadvantages

The business plan of the insurance company 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 industry knowledge.
• An effective, comprehensive training program for employees.
• Extensive industry network connections.

Disadvantages of opening an insurance agency:

• Limited marketing budget to ensure visibility.
• Inability to scale quickly to large increases in demand.
• The brand is missing.

Possibilities:

• Participation in a growing industry.
• Work in an industry that is required by almost all Russians.

Ability to spread overhead costs as customer base increases.

Competitive advantages

The insurance company's business plan will position itself as the most experienced insurance support service. This positioning will be achieved by leveraging its competitive advantage.

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

This in-depth industry knowledge is based on the firm's principal experience as an independent insurance agent. The owner will take all this intellectual capital and turn it into training program so that it becomes organizational knowledge.

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

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

Registration

Before you open a company providing insurance services, you must register entity(LLC or CJSC). Amount of 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 clients, then authorized capital there should be more. To carry out insurance activities, you must obtain the 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 must provide a description of the premises in which the insurance company's office will be located. The premises must have a convenient location. The office building should be adjacent to a parking lot, the area of ​​which can accommodate not only the cars of company employees, but also clients. The area of ​​the premises is determined based on the number of insurance services provided.

The insurance company's office should be brought into proper shape. It is advisable to use the services of designers when decorating the interior. The room should be discreet business style. We must also not forget about the dress code of employees. This helps to form a positive impression of the company.

Financial plan

It is necessary to determine:

• fixed assets;
• intangible assets;
• primary costs;
• costs of paying for third party services;
• labor costs and taxes;
• total estimated costs for the year;
• profit for the year.
• You also need to create a short balance sheet.

This section will present the financial calculations of the insurance company's 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

An insurance agency's break-even analysis shows that it would require $15,609 in monthly revenue to reach the break-even point.

Sales forecast

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

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

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

Sales forecast
	2017	2018	2019
Sales
Exclusive agents	$ 51049	$ 112548	$ 121458
Insurance brokers	$ 59812	$ 125745	$ 134745
Total sale	$ 110861	$ 238293	$ 256203
Direct sales cost	2003	2004	2005
Exclusive agents	$ 7657	$ 16882	$ 18219
Insurance brokers	$ 8972	$ 18862	$ 20212
Interim direct cost of sales	$ 16629	$ 35744	$ 38430

Cost forecast

Marketing expenses should be budgeted to be high during the first quarter; a function of the desire to create visibility for a start-up company. After the first quarter, expenses will fluctuate depending on what marketing events occur every 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
Sales percentage	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, it may reduce the need for support staff services.