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.
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.
By drawing up a step-by-step business plan for an insurance company, good information was obtained about the market and 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 a sustainable business, clients 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 final communication method is a direct mail campaign targeting 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
An insurance company's business plan also reflects the strengths and weaknesses 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 a legal entity (LLC or CJSC). The size of the authorized capital of the 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 the authorized capital should be larger. 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 activities occur during each month.
| Marketing budget | |||
| 2017 | 2018 | 2019 | |
| ads | $ 2920 | $ 4000 | $ 5000 |
| Trade shows | $ 2 700 | $ 3000 | $ 3500 |
| Other | $ 2 025 | $ 2250 | $ 2500 |
| ---- | ---- | ---- | |
| General sales and marketing expenses | $ 7645 | $ 9250 | $ 11 000 |
| 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.
Insurance today is considered one of the most promising and fastest growing areas of Russian business. The generally accepted classification includes three main types of insurance: personal, property and liability. IN special category We should highlight auto insurance, which attracts more and more entrepreneurs every year.
The interest shown by enterprising people in this type of activity is understandable - the number of cars is steadily growing, and at the same time the share of vehicles purchased on the primary market is growing. Most people who buy a new car prefer to protect themselves from the risk of damage or theft of property by concluding a CASCO agreement. In addition, motor third party liability insurance (MTPL), recognized as mandatory in our country since 2003, does not lose its relevance today. Learning how to open an auto insurance office and what types of work patterns exist in the industry will help you establish own business with good prospects.
In a broad sense, insurance is a special type of relationship between two entities, one of which, the policyholder, is interested in protecting himself, his property and his liability from the occurrence of all kinds of adverse events. For this purpose, he enters into an agreement with the insurer, which necessarily specifies the object of insurance, the amount of the insurance premium, as well as the amount and procedure for making payments.
The insurer, in turn, having a certain capital, assumes obligations to compensate for damage to the policyholder upon the occurrence of an insured event within the framework established by the contract and current legislation. The goal of any insurer, as an entrepreneur, is to make a profit, and the effectiveness of such a business directly depends on the number of transactions concluded. You can ensure the financial stability of your enterprise only by creating a sufficient insurance fund.
Important! You must understand that insurance in general, and car insurance in particular, is a rather risky activity, since the occurrence of an insured event, and therefore the need to make payments several times higher than insurance premiums, does not depend in any way on the entrepreneur providing such services.
As for the objects of activity, auto insurance as a business provides for 2 fundamentally different areas:
- CASCO property insurance is voluntary, the object is the car itself, it is insured against possible damage, as well as theft;
- compulsory liability insurance OSAGO - the object is recognized as the property interests of the car owner, which are associated with obligations arising as a result of harm to the health and life of third parties, as well as their property (in other words, in the event of an accident that occurred through the fault of the insurer, possible damage to the participants in such an accident is compensated insurance company within the framework specified in the contract).
As domestic practice shows, it is inappropriate to work in only one direction. The fact is that compulsory motor liability insurance is strictly regulated by government authorities; tariffs for this type of insurance are set exclusively by the Government of the Russian Federation. The insurance entrepreneur cannot influence the final cost of the policy. According to experts, a business designed only for the sale of MTPL insurance is obviously unprofitable.
In turn, CASCO opens up good opportunities for the insurer to earn money, as it involves independent management of tariffs and adjustment factors. However, due to its high cost, and also because it is not mandatory, CASCO is in much less demand among car owners.
The optimal solution for a car insurance business is to combine both directions, as well as provide additional paid services, for example:
- assessment and examination;
- assistance in case of road accidents;
- life insurance;
- providing technical assistance in case of an accident.
All these items can be included in the cost of insurance.
Having received general idea about car insurance, we will understand issues related to organizing a business.
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If you are aiming to create your own business selling auto insurance products, you can follow one of the paths presented below. The choice will depend primarily on what starting capital you have, as well as on the scale of the enterprise you want to build.
Option 1. Creation of an insurance company
This option is the most expensive and time-consuming. When opening an insurance organization, you must be guided by the requirements of Russian legislation, namely:
- Chapter 48 of the Civil Code of the Russian Federation;
- Law “On the organization of insurance business in the Russian Federation”;
- Federal Law No. 40-FZ “On compulsory insurance of civil liability of vehicle owners.”
According to the above regulatory documents, the insurance company must have the status of a legal entity, that is, in order to obtain a work permit, it is necessary from the tax service.
In addition, such a company will need a license to carry out insurance activities. Since 2013, the licensing authority has been the Insurance Market Department of the Central Bank of the Russian Federation. To obtain a license, it is necessary to provide the licensing authority with documents indicating that the organization has an insurance reserve sufficient to conduct its activities. The main requirement is the presence of a fully paid authorized capital in the amount of at least 120 million rubles.
Important! It is not allowed to contribute borrowed funds and pledged property to the authorized capital.
The requirements for a licensee in the case of auto insurance also include:
- minimum work experience in the field of CASCO and OSAGO insurance – 2 years;
- the presence of an authorized representative in each of the constituent entities of the Russian Federation;
- access to an automated compulsory insurance system;
- membership in a professional association, which is the Russian Union of Auto Insurers (RUA), etc.
The law also establishes requirements for the insurance portfolio of such organizations. The amount of insurance premiums (contributions) that fall on MTPL and CASCO insurance in the total volume should not exceed 50%. That is, a company cannot only engage in vehicle and civil liability insurance; the scope of its services must be much broader to ensure financial stability.
It follows from everything that in order to open your own insurance company, you need to have large start-up capital and significant experience in the insurance industry. But along with this option there are others, more available methods make money on car insurance.
Option 2. Working as an agency
This is a simplified option for carrying out insurance activities and, in fact, it represents an intermediary scheme. That is, you do not need to create a legal entity and obtain the appropriate license. You can work as an individual entrepreneur and represent the interests of several existing insurance companies at once.
How to open a car insurance office? To do this you need to follow a few relatively simple steps:
- select the companies with which you will cooperate and make a request to conclude an agency agreement;
- pass interviews and prove your usefulness to representatives of insurance organizations, conclude contracts and, if necessary, undergo training (requirements for agents may vary);
- rent and equip office space with Internet access;
- organize advertising of your services.
The profit of such a business will consist of an agency fee, provided as a percentage or a certain amount from each issued policy. Your effectiveness will depend entirely on your communication skills, activity and professionalism. More clients– more insurance issued – more profit.
The amount of monetary remuneration for agents is not usually disclosed openly; it can be clarified with representatives of a particular insurance company in person. If you believe the reviews of already operating agencies, earnings range from 10 to 30% of the cost of the policy.
The advantages of this format of work compared to opening your own insurance company include the fact that the entrepreneur risks virtually nothing. In the event of an insured event cash payments carried out by the insurer whose product was sold to the client.
Important! The insurance agent is responsible for maintaining the insurer's trade secret data, non-disclosure of personal data of clients (policyholders), as well as for the safety of funds received from policyholders and the proper use of insurance policy forms.
Opening an insurance agency according to the specified scheme is the most common option for a car insurance business, which does not require significant financial investments at the start, and at the same time, allows you to earn good money.
More details about the principles of operation of the insurance agency are described in the following video:
Option 3. Brokerage activities
Another option to build in the auto insurance industry is to become a broker. A broker is a classic intermediary. His difference from an agent is that he cannot represent one of the parties to the insurance contract. He has the right to act in the interests of one party or another as an independent insurance subject.
Thus, when carrying out brokerage activities, an entrepreneur on contractual terms can receive monetary compensation either from the insurer or from the policyholder (only from one party) for performing certain functions. Most often, it is policyholders who resort to the services of brokers, the most popular of which are:
- consulting in choosing an insurance company;
- assistance in drawing up a contract;
- selection of the optimal insurance product;
- support and amendments to the contract, etc.
The services of such intermediary enterprises are usually paid in the form of a set fee.
Despite the fact that the insurance market is sufficiently developed, the current situation in this sector is such that opening a new insurance agency may be a profitable idea based on the needs of the target audience.
In the capital and other large cities, insurance services from jewelry companies are often sought. Insurance of financial risks arising during the joint construction of residential or non-residential facilities is in demand in megacities. You can always find your niche for opening an agency by conducting a thorough analysis of the insurance market for available services. To do this, taking into account all the features outlined below, they create a business plan for an insurance agency. One of possible options- a franchise or branch of an already popular agency. Such a project can be a good starting point in the future for a new and independent agency.
Features of the insurance agency business plan project
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 prospects and economic efficiency of the 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 implementation is planned for 2 years.
During this period it is planned to achieve the following goals
— creation of a profitable enterprise;
— meeting the needs of the target audience in the field of life and property insurance for both individuals and legal entities;
- obtaining high profits.
The main financial aspects of a new business are as follows:
— the period within which the company will recoup all initial investments and reach the level of profitability – 2 years. Under favorable conditions - earlier;
— total cost of the project (the amount of the commercial loan that is planned to be issued at the beginning of the activity) – 1 million 200 thousand rubles;
— loan payments will begin from the first month of the enterprise’s activity. During the first two years, the total amount of payments will reach 82 thousand rubles;
— interest rate on the loan is 17.5%. In the future, this figure may be reduced;
— the total economic effect from the sale of services over the indicated period, under favorable conditions, will reach 84 million.
In general, starting a business in the insurance industry will be characterized by a low level of costs. But in order to avoid losses and have the opportunity to develop in the chosen direction, you need to think carefully about all areas of activity and draw up a clear plan for all upcoming stages.
Features and prospects of working as an insurance agent - in the video:
Features of the insurance company's activities
By offering life insurance and various types of property as its main services, the company immediately identifies the approximate circle of its clients. The target audience of the insurance company is very wide. First of all, these are private individuals who insure their lives in case of illness or death, accident or work injury. The second, more extensive and highly paid category is insurance of movable and immovable property of individuals, as well as organizations and enterprises.
Many insurance companies offer too many types of services at once. This may complicate entering the market, as it will require too much time and money, as well as attracting a large number of specialists. Therefore, it is worth starting with a limited list of services, with a main focus on serving individuals and providing a limited range of services to enterprises and organizations.
The operating principle and procedure of an insurance company largely depends on the type and scale of its activities. But in general, the general procedure includes the following responsibilities of the insurer:
— drawing up insurance programs of all types provided for in the strategy. At this stage, all financial aspects are calculated and a specific insurance proposal is developed;
— signing an agreement with a client - an individual or organization;
— receipt from the policyholder of the first insurance payment, of which 15% is received by the insurer as a commission and payment of expenses incurred, and the remaining amount goes to the insurance reserve. The insurance reserve, in turn, is divided into 2 parts: 70% for the accumulative reserve and 15% for the risk reserve. Both reserves are invested in instruments provided by law;
— upon the occurrence of an insured event, agency specialists review all submitted documentary evidence and make a decision on the advisability of making insurance payments, their amount and procedure.
The procedure for insurance and payments may differ slightly, but the principle is standard for all organizations. It is determined by relevant legislation. True, organizations can have different sales channels - both direct and brokerage channels are active in the market. At the same time, in the domestic market the share of the brokerage channel for sales of insurance services is still quite low and amounts to less than 4 percent. The Russian insurance system is characterized to a greater extent by the participation of non-insurance intermediaries - banks, travel agencies or car dealers. Vivid examples are MTPL and comprehensive insurance policies.
Internet insurance today also represents not only direct sales of insurance services. Over the past few years, the number of Internet agents performing intermediary functions has increased significantly.
Registration
The insurance company can be immediately registered as an LLC. There are other types of legal entities. But a limited liability company will be the most convenient and profitable for a start-up organization. When drawing up the charter for the LLC being opened, you need to list in detail the planned services of the agency, not forgetting about additional and auxiliary offers. When filling out the documents, you must provide all activity codes of the new company. For this purpose, a specialized OKVED classifier is used. It selects one or more suitable activities codes Regardless of what additional activities may be, they must be related to insurance and must be separately indicated when drawing up the application. For example, this could be damage assessment, which has a direct connection with insurance.
A mandatory condition for creating an LLC is the contribution of the authorized capital. Its size largely depends on the services provided by the campaign. The higher the value of the services (for example, life insurance of the client), the larger the authorized capital. But the minimum amount is 10 thousand rubles.
Other documents required when opening a legal entity are the charter, the decision to create an LLC (or another form), the decision to appoint a manager and, if there are several founders, the minutes of the founders’ meeting.
License. Certificate
The agency may act on the basis of a special permit document— licenses for services provided. All legal requirements regarding types and forms of insurance, as well as licensing and certification, are contained in the specialized federal law “On the organization of insurance business in the Russian Federation” ().
You must first pass the certification required by law. This process is quite complex, it takes place under the guidance and control of the Ministry of Finance and requires a long time - usually certification takes up to a month. To complete it you will need a package of documents, including:
- Insurance rules.
- Documentation for opening a campaign.
- Tariff calculations.
The specificity of the campaign is that everyone the new kind insurance requires the preparation of new documents. In addition, the head of the company must confirm his qualifications in this field. The success of the undertaking will depend on the work experience of the manager himself and the number of positive reviews about his activities.
The result preparatory work the enterprise will be entered into the relevant state register after receiving a license. The entire licensing process will take up to six months, so you need to take care of this in a timely manner.
Regulatory documents that must be studied before starting work:
Stages of creating a business
The basic sequence of actions for opening an insurance agency is as follows:
— development of a strategy for the future company;
- preparation of marketing and financial plan;
— renting or purchasing office space, equipping it and preparing it for opening;
More detailed plan insurance agency includes the following stages:
| Stages | Execution conditions | Deadlines |
| Start of the project | 1 – 2 year | |
| 1 month project | First 30 banking days | |
| Receiving credit funds | Availability of a mandatory package of documents | 1 month |
| Entry into the state register, registration with administrative and tax authorities | Concluded investment agreement | From 1 to 30 calendar days |
| Selecting a location, preparing documentation | Preliminary work | 1 month |
| Purchase of equipment | Conclusion of an investment agreement | Up to 30 calendar days |
| Equipment installation | Receiving investment funds | Up to 30 calendar days |
| Hiring employees | Production activities | Up to 30 calendar days |
| Training | The end of the stage of organizing the production process | Up to 1 month |
| Advertising | Within 1 month | Up to 1 year |
| End of the project | 12 – 24 months |
Premises and equipment
The main condition for the selected office space is good access to it and the availability of convenient parking for clients’ personal vehicles. There should be good transport links nearby - a metro station and public transport stops for clients who do not have their own car. At the entrance, a noticeable sign is required that will orient visitors and serve as an advertisement.
The room may be small, but spacious enough to accommodate several employees and the opportunity to meet with clients. Maximum area - 150 sq. m, but maybe less. The design of the office as the face of the agency is very important. This issue needs to be given a lot of attention: there should be no bright, emphasized decorative details here. Clients are more attracted to a strictly business-like appearance, which speaks of the company’s reliability.
Purchasing office equipment will be an important stage in opening a company. At the first stage you need to purchase:
— desks and chairs for employees in the quantity necessary to provide furniture for the entire team;
— chairs, armchairs or sofas for waiting by clients;
- computers with high-quality software for all specialists;
— other office equipment – printers, scanners, copy machines;
- connection to telephone and Internet.
To create a comfortable atmosphere, the workplaces of specialists should be demarcated. You can equip several separate small offices. If this is not possible, the room is zoned using screens.
Staff
At the time of opening the agency, there should be no more than 10-20 employees on staff. A larger staff will be too expensive to maintain on a monthly basis. In addition, a start-up insurance agency is unlikely to be able to count on a large number of clients. The team will include:
- manager,
- accountant,
- lawyer,
- insurance agents.
The main responsibility of insurance agents is to independently find clients to provide them with insurance services. Otherwise, you will have to wait a long time for the company to develop. According to the preliminary plan, in the first 2 years, as the company develops, it will be necessary to increase the team to 100 - 150 full-time and freelance agents.
As business opportunities expand, the number of employees and insurance agents will also grow. And for the business to develop, there must be insurance agents on staff who can convince and sell insurance services. The more services are sold, the better the insurance agency will do. The company's profit will depend on this.
In order to accurately recruit a professional staff, you need to familiarize yourself with a large number of applicants and select only the most professional and experienced. In order to retain new employees, you need to create the most favorable working conditions, interest agents with a positive bonus, possible career advancement, and a good percentage of the services they sell. You can also go by training beginners using special training. It is advisable to use these two types of work with agents simultaneously. Be sure to hire several experienced insurance specialists who do not require training.
The dress code of employees is one of the optional, but important conditions. Strict appearance emphasizes the authority of the company and the professionalism of its specialists.
Marketing. Basic strategies for attracting clients
A marketing campaign should begin with studying the state of the market, current trends and dynamics. Crisis phenomena, which periodically influence the general state of the economy, are important in the functioning of the insurance market. Thus, in 2008–2009 and 2013–2014, the insurance market significantly reduced its activity, which is natural due to the international and domestic crisis. At the present time, the echoes of the last crisis are still being felt by most insurance agencies, especially small market participants. To cope with this problem and retain customers, it is necessary to offer more favorable conditions, comprehensive insurance packages, and necessarily improve the quality of services.
Statistics show that despite some negative trends, the insurance market is still growing and expanding. A particularly popular area is life insurance: every year this service is in increasing demand. If we analyze the insurance situation in the country as a whole, we can conclude that as a result of the crisis, the total number of companies on the market has decreased. At the same time, only strong and competitive participants remained in this segment.
The driving force of an insurance agency forward is the advertising of each individual insurance service, since the work of an insurance agency is the sale of insurance services.
With each specific insurance service, they need to go to the target audience of customers, sometimes mixing them. A profitable solution would be a “two in one” offer - a discount when insuring two objects at the same time.
With a small starting capital and the impossibility of providing a wide range of insurance services at once, you can focus on one type of service. It is important that this direction is not yet widespread enough on the market or is completely new. In the absence of competition, you can achieve high results in business development. And as the business develops in the future, add new insurance services.
According to statistics, the following advertising methods work best:
— Internet: creation and promotion of a website, posting information about insurance services on thematic websites, using banner and contextual advertising;
— Media, especially the use of thematic publications. This will allow you to reach the target audience as much as possible;
A good method would be to offer services directly to potential clients - organizations and enterprises - in the form of online newsletters with information about current service packages. Customer reviews are one of the best promotion methods in this area. It's connected with high cost insurance services and a low level of consumer confidence in little-known and untested companies.
How in short term open your own insurance business - in the video:
Finance
First, you need to count on a minimum capital of 20 million rubles. Having such an amount will allow you to confidently start a business and not be afraid of a temporary lack of profit.
When opening an insurance campaign, you must count on the following main expense items:
| Expense item | Expenses per month | Expenses for the year | One-time costs | Total expenses for the year |
| Rent (purchase) of premises (from 40 sq.m.) | 30000 | 360000 | 60000 | 420000 |
| Purchase of equipment, including computers and office supplies | 106000 | 106000 | ||
| Buying a car | 430000 | 430000 | ||
| Website creation, hosting, scripts | 120000 | 120000 | ||
| Advertising expenses | 45000 | 540 thousand | 540 thousand | |
| Salary | 332000 | 3.9 million | 3.9 million | |
| Taxes | 99800 | 1198000 | 1198000 | |
| Additional expenses | 71560 | 71560 | ||
| Total | 407 thousand | 4.9 million | 788 thousand | 5.7 million |
Thus, the financial result regarding investments during the first year of the company’s operation is as follows: to open and develop an insurance company during the designated period, you need to have an amount of up to 6 million rubles available. This condition is relevant for a small organization of several insurance agents. If a larger organization is initially opened, this amount can double. However, this project provides for a gradual expansion of the company's scale.
The financial year begins in January. The deadline for tax payments will begin from the beginning of the year. The list of taxes for LLCs under the standard taxation system will be as follows:
The income part of the business plan should begin with drawing up an approximate pricing policy for the future agency. This indicator is determined taking into account the cost of the organization and the current pricing policy in the industry. Average tariffs for insurance services in the country today are as follows:
By dividing the entire 2-year period of opening and developing a business into 2 main stages - investment and operation, you can draw up the following service provision plan:
| Period | Type of service | Volume of production and sales for 1 month. (PC.) | price, rub. | Sales revenue, rub. |
| 1 – 12 months of investment | Life and health insurance | 20 people | From 120 thousand | From 2.4 million |
| 1 – 12 months of investment | Other insurance | 100 objects | From 17 thousand | 1 million 680 thousand |
| Life and health insurance | 50 people | From 134.4 thousand | From 6.7 million | |
| 13 – 24 months of operation | Other insurance | 200 objects | From 18.5 thousand | From 3.7 million |
If in the future the current market trends continue, that is, an increase in the volume of services provided in the amount of 10–22% per year, then the annual growth in the volume of sales of the company’s services will reach more than 58 million rubles per year.
To overcome difficulties at entering the market and smoothly pass the entry barrier, it is imperative to attract highly qualified specialists and use high-quality equipment. A competent marketing strategy and a well-thought-out advertising campaign are required. To find the best specialists, it is necessary to allocate approximately 1 month for the search for personnel, selecting the best through interviews.
Risks
When planning the income of an enterprise, be sure to take into account all possible risks.
The main ones
— high level competition in the insurance industry;
— lack of proper trust among potential clients, especially private individuals;
— high level of competition in the industry for positions of top managers and specialists in other areas;
— high level of capitalization of investments.
The conclusion about opening an insurance agency as a type of business may be as follows. First of all, such an enterprise is potentially highly promising and profitable, characterized by high profitability and constantly increasing demand among potential clients. All these advantages take place with proper organization of the company’s work and a timely advertising campaign. The weaknesses of this industry include high competition, continued distrust among the target audience and a lack of specificity in the legislative framework. In the future, the prospects for the insurance business will depend on the general economic situation in the country, the quality of legislative regulation of this issue, as well as competent business planning by each entrepreneur.
The main features of opening an insurance agency are in the video:
Ministry of Agriculture of the Russian Federation
Federal State Educational Institution of Higher Professional Education "Ural State Agricultural Academy"
Faculty of Correspondence Studies
Department of Finance and Credit
GRADUATE WORK
Business plan of an insurer using the example of OJSC State Insurance Company "Yugoria" in Asbest
Matyukhova Antonina Evgenievna
Supervisor:
Ph.D., professor
Balobolin V.G.
Standard control:
Ph.D., Associate Professor
Dubrovskaya E.O
Ekaterinburg 2011
INTRODUCTION
1 DEVELOPMENT AND CONTENT OF A BUSINESS PLAN
1.1 Business plan, its purpose
1.2 Features of the development process organization
2 INSURANCE AND INSURANCE GROUP "YUGORIA"
2.1 Insurance business
2.2 Insurance group "Yugoria"
2.3 State insurance company "Yugoria"
3.3 BUSINESS PLAN FOR OPENING A REPRESENTATIVE OFFICE OF GSK “YUGORIYA” IN THE CITY OF ASBESTOS
3.1 Market research in Asbest
3.2 Sections of the business plan
CONCLUSION
LIST OF SOURCES USED
APPENDIX A
APPENDIX B
APPENDIX B
APPENDIX D
APPENDIX D
APPENDIX E
APPENDIX G
INTRODUCTION
insurance company business plan
The purpose of the thesis is to consolidate theoretical knowledge and practical skills on organizational and economic issues of creating the functioning of a company, as well as independent calculation of basic technical and financial indicators.
When completing a thesis, a number of specific tasks are solved related to the study and analysis of additional material on a given topic, skills in working with specialized literature, skills in selecting and systematizing information, presenting it in the most concise but sufficiently complete form, presenting materials in the form of tables are consolidated, graphs, etc.
The object of this thesis is the business plan of a newly created division of an existing company.
Each company, starting its activities, is obliged to clearly understand the need for financial, material, labor and intellectual resources, the sources of their receipt, and clearly calculate the efficiency of using resources.
To do this, you need to develop a business plan.
A business plan is a plan-program for conducting a transaction and making a profit on this basis, that is, a system of systematically organized events and actions aimed at achieving a set goal.
The purpose of developing a business plan – plan the company’s economic activities for the immediate and long-term periods in accordance with market needs and the ability to obtain the necessary resources.
By neglecting to draw up a business plan, the company may not be prepared for the troubles that await it on the path to success, and will feverishly improvise. Most often this ends in failure. Therefore, it is better to take the time and do business planning. At the same time, the written execution of a business plan is essential for organizing work on its implementation. You should not neglect drawing up a business plan even in conditions when market situations change quite quickly.
To complete this thesis, economic and financial literature on creating enterprises and drawing up business plans was studied. The object of the thesis is a company engaged in insurance activities. The literature on this type of activity was studied. The practical part of the thesis is devoted to a specific insurance company “Ugoria”. The activities of this company, its history, and development prospects were thoroughly studied. This thesis proposes a business plan for opening a Representative Office of the Yekaterinburg branch of the State Insurance Company "Yugoria" in the city of Asbest. Before the development of this business plan began, a number of studies were carried out, which were designed to confirm the need to create such a unit in the city of Asbest.
1 DEVELOPMENT AND CONTENT OF A BUSINESS PLAN
1.1 Business plan, its purpose
A business plan is a plan for the reasonable organization of a specific business.
In the financial market, a business plan is a working tool used in all areas of entrepreneurship. A business plan describes the process of functioning of the company, shows how its managers are going to achieve their goals and objectives, primarily increasing the profitability of the work.
The business plan is a permanent document; it is systematically updated with changes related to both variables occurring within the firm and changes in the market in which the firm operates and in the economy as a whole. The business plan links in-house and macroeconomic analysis conducted by specialized scientific organizations. As a rule, each company draws it up, although the possibilities for preparing such documents may vary: a small company can attract specialists from consulting organizations to develop a business plan.
Due to the fact that a business plan is the result of research and organizational work aimed at studying a specific area of activity of a company (product or services) in a specific market in the current organizational and economic conditions, it is based on:
A specific project for the production of a specific product (service) - the creation of a new type of product or the provision of new services (features of meeting needs, etc.);
A comprehensive analysis of production, economic and commercial activities, the purpose of which is to highlight its strengths and weaknesses, specifics and differences from other similar companies;
The study of specific financial, technical, economic and organizational mechanisms used in the economy to implement specific tasks.
The following order can be traced in the strategic work of the company:
1st stage. Development of a development concept.
2nd stage. Investment program.
3rd stage. Business plan for the medium term.
4th stage. Activities to implement the business plan.
A feature of a business plan as a strategic document is its balance in setting objectives, taking into account the real financial capabilities of the company. In order for a business plan to be accepted, it must be provided with the necessary financial resources. This largely determines the nature of the projects (concepts) that are studied when developing a business plan.
A business plan can be used to attract investors and lenders. Before risking any capital, investors should be confident that the project has been carefully designed and be aware of its effectiveness. They should review the business plan before considering capital investment.
Diagram 1 (Appendix A) shows the functions of the business plan.
A business plan helps solve the following main tasks:
Determine the specific areas of activity of the company, target markets and the company’s place in these markets;
Formulate the long-term and short-term goals of the company, strategies and tactics for achieving them, identify the persons responsible for the implementation of each strategy;
Select the composition and determine the indicators of the goods that the company will offer to consumers;
Assess production and trade costs for the creation and sale of goods;
Assess the compliance of the company’s personnel and the conditions for motivating their work with the requirements for achieving the set goals;
Determine composition marketing activities firms for market research, advertising, sales promotion, pricing, distribution channels, etc.;
Assess the material and financial position of the company and the compliance of financial and material resources with achieving its goals;
Anticipate difficulties and pitfalls that may interfere with the implementation of the business plan.
Each task of the plan can only be solved in conjunction with others. The main center of the business plan is the concentration of financial resources to solve strategic problems. The process of drawing up a plan allows you to carefully analyze the work you have started in every detail. The business plan serves as the basis for the business proposal in negotiations with future partners; he plays an important role when inviting the company's key personnel to work.
The need for a business plan arises when solving the following problems:
Preparation of applications for loans.
Justification of proposals for privatization.
Opening a new business and determining the profile of the future form.
Repurposing an existing company.
Drawing up prospectuses for the issue of securities of privatized and private companies.
Entering the foreign market and attracting foreign investment.
Business plan:
Makes you concerned with the company's prospects.
Allows you to clearly coordinate efforts to achieve goals.
Establishes performance indicators for subsequent monitoring.
Forces managers to more clearly and specifically define their goals and ways to achieve them.
Makes the company more prepared for sudden changes in the market situation.
Clearly demonstrates the duties and responsibilities of all company managers.
1.2 Features of the development process organization
A business plan can be prepared by a manager, an entrepreneur, a firm, a group of firms, or a consulting organization. If a manager has an idea to master the production of a new product, provide a new service, or simply a new method of organizing and managing production (any innovation), he proposes his idea for a business plan. If he intends to implement his concept independently (as an independent entrepreneur or on the basis of his own responsibility), he creates own business plan. To develop a development strategy for a large company, a detailed business plan is drawn up. Often, already at the stage of preparing a business plan, a partner is identified.
Firms operating in a stable situation and producing a product for a fairly stable market with increasing production volumes develop a business plan aimed at improving production and finding ways to reduce its costs. If a company does not have enough of its own capacity to produce them, then it can go either by attracting capital investments to create new capacities, or by searching for partners to whom it offers the manufacture of certain units, parts, and the implementation of technological processes.
In addition to the authors of the concepts contained in the business plan, financiers who know the specifics of the credit market, the availability of free capital, and the risk of a given business take an active part in its creation. The core group of specialists for developing a business plan consists of economists, statisticians, and systems specialists.
Diagram 2 (Appendix B) shows the business planning process.
A business plan assesses the future situation both inside and outside the company. It is necessary for the management of the company to navigate the conditions of joint-stock ownership and, to a certain extent, when creating companies. It is with the help of a business plan that the company’s management decides what part of the profit remains in the business for accumulation, and what part is distributed in the form of dividends among shareholders. The business plan is used to justify measures to improve and develop the organizational and production structure of the company, in particular to justify the level of centralization and responsibility.
A business plan actively helps coordinate the activities of partner firms, organize joint development planning for groups of firms associated with cooperation and the production of one or complementary products. In this case, a counter process may take place. Or a change in the finished product determines the need to develop production at partner firms that produce components and parts that perform parts of the technological process in cooperation. Or the justification for changing a separate element of the finished product, ensuring an increase in its resource, determines the need for a corresponding change in the operations for the production of the final (final) product. In any case, firms participating in the same process, as a rule, provide common financing.
A business plan is most actively used when searching for investors: new shareholders, creditors, sponsorship investments, etc. A business plan helps large entrepreneurs and companies that are going to expand their business by purchasing shares of an existing company or organizing a new organizational and production structure.
Many investors like to read a one- or two-page summary of a business plan. ( summary section or summary ), allowing them to see the important features and benefits of the project. Preparation summary especially difficult. This can be done skillfully only when the entire plan has been developed and the main activities that need to be highlighted (one or two sentences) and included in the summary are already obvious. It should be remembered that the summary is the first material by which a potential investor will judge the project.
The executive summary should provide answers to the questions of future lenders: “What will they gain from the successful implementation of this business plan?” and “What is the risk of them losing money?” The text should be understandable even to non-specialists (simplicity and conciseness of presentation, a minimum of special terms).
After a brief summary of the business plan, information about the company is usually provided:
1. Formation of a company.
2. Organizational structure of the company.
3. Company image.
4.Analysis of the company's operating conditions.
5 . Industry, company and its products.
The purpose of this section is to provide investors with the necessary information about the product being manufactured and its sales market. The section should describe the scope of business and the product that the company will offer for sale, the nature of the industry and market conditions for the product being produced.
Industry . The current status and development prospects of the company are provided. Describes new products or advances, new markets and customers, new needs, new companies, and other economic and socio-political trends and factors.
Firm. This should include a brief description of the area in which the firm operates or intends to enter; indicates who is or intends to become its main buyers. The date of registration of the project, as well as the details of the company, are noted.
Goods (products and services). A potential investor is most interested in understanding what the company is going to produce and sell, what is the degree of protection of its product, its advantages and possible disadvantages.
It is advisable to describe the product according to the following scheme.
1. The essence of the product (products, services).
2. Main features of the product (products, services).
3.Analysis of goods (products or services).
4.Production conditions.
5. Market research and sales analysis.
The purpose of this section is to provide the investor with sufficient facts to convince him of the competitiveness of the project under consideration.
Market assessments of this project based on market research and analysis.
Customers (buyers). Consider who may become the initial potential customer (buyer) of products or services. Potential customers are classified into related, homogeneous groups (main market segments).
Sales volumes and dynamics. It is necessary to determine what the total constant sales volume of the product is supposed to be. This indicator is calculated based on data on purchases of similar products by potential customers (buyers) in each of the main market segments. The total sales volume should be described in physical and monetary terms. It is advisable to indicate the potential annual sales growth of the proposed product.
Competition. Here we need to make a realistic assessment of the strengths and weaknesses competing products or services and name the companies that produce them, compare competing products or services based on basic price, characteristics, service, warranties and other significant features.
In addition, the advantages and disadvantages of competing firms should be shown.
Assessment of the scope of distribution and sales. The advantages of products (services) that make them competitive now and in the future are briefly outlined here, and the main clients of the company are identified. Based on an assessment of the merits of the products (services) produced, the volume and dynamics of demand and their trends in the market in recent years, it is necessary to determine the company’s sales area and sales volumes in physical and value terms for each year of the next three years. The growth of sales of a company's products and the evaluation of its activities can be based on changes in the situation in the industry and the strengthening or weakening of competition.
Prospective sales assessment. Here you need to explain how the company is going to develop the business taking into account the interests of customers, outline programs for creating new products, and reveal the basic principles of improving technology and pricing policy.
Marketing plan.
The marketing plan reveals in detail the policy in the field of trade and service, prices, and advertising strategy, which allows you to achieve the planned sales volumes and take an appropriate place in the market. To discuss the project with future partners or investors, specific principles for product distribution, methods for determining prices, the level of return on invested capital and other issues of marketing policy are outlined.
The overall marketing strategy of a firm can be achieved through market research and assessment. The section should determine which client groups can be won first by an intensive price attack and which groups of buyers will be “hit” later, what specific groups of buyers may arise and how to work with them, what qualities of the product should be emphasized (price, delivery speed, warranty service, etc.), what new or unusual marketing techniques are used to attract customers (giving out goods for temporary use to convince the client of the need to purchase, etc.).
Price policy. Many firms believe that they have superior products and that they can offer them at a lower price than their competitors. This may make a bad impression. Firstly, if the product is so good, then you might think that the company's management has little understanding of trade if it offers the product at such a low price. Secondly, current trends in prices should not be underestimated. If a company starts with a low price, then the room for maneuver is narrowed.
When considering the price of goods (services), you need to compare it with the prices of your main competitors.
Sales tactics. Here it is advisable to consider the methods that will be used for the sale and delivery of goods, indicating whether the company has its own stores, sales representatives, and distributors. Is it possible to use trade organizations already engaged in the sale of similar products? It is necessary to disclose both operational and long-term product supply plans, describe the volumes of retail and wholesale sales, the number of sellers and compare these indicators with those of competing companies. If distributors or sales representatives are used, it must be shown how they will be selected, when they will start working, and how they will report. When using an existing distribution network, it is necessary to describe its structure and directions for restructuring. It is noted when and where sales or representative organizations are used.
Service and Warranties . If a company is going to produce products that require service and warranty service, the importance of these problems for a potential client is shown. The types and terms of warranties and service are described, and it is noted whether a special service organization, a service agency will be created, or services will be provided by sellers or the product will be returned to the manufacturer.
Advertising. It is especially important to show the company’s approaches to attracting attention to the product. We are talking about plans to display goods on television, advertisements in newspapers, the release of billboards and special advertising literature, and the use of advertising agencies. For consumer goods, a strategy is determined advertising company on their implementation. A schedule is given indicating the advertising price. If advertising constitutes a significant part of the company's costs, it is noted how these costs are compensated.
Intentions and development plans.
If the product, technology or service of the project under consideration will be improved before it takes its place in the market, then this must be fully reflected in the business plan. The investor will want to know the size and nature of these changes and improvements, their cost and the time it takes for the product to reach market conditions.
Development objectives . It is necessary to describe the current status of the product (service) and explain what needs to be done to make it more competitive, briefly outline the capabilities and intentions of the company to achieve this development. It is necessary to note the types and volumes of technical assistance required, determine which other organizations can supervise this work and what their capabilities are.
Difficulties and risks. It is necessary to identify the main promising problems in improving the product and outline ways to overcome them. The cost of developments and the time of their introduction to the market should be indicated.
Improvements and new products (services). In addition to the described improvements to the main products (services), long-term work plans can be discussed to create new related products and services that could be sold (sold) in the future to the same consumer groups.
Cost: The costs required to improve the quality and development of product production should be presented and discussed. These costs are often underestimated, which can seriously undermine project financing. Such expenses can amount to 10-12% of total costs and become part of the financial plan.
Production and operational plans.
The main goal of this section is to provide information on the security of production on the production side of production, to develop measures to maintain and develop production. This section should reflect the types of services, company conditions, required equipment and labor (at certain times and throughout the project) that are needed to produce the product.
Geographical position . It is necessary to describe the planned location of production and discuss its advantages and disadvantages in such matters as: wage levels, labor availability, proximity to customers, subcontractors and sources of raw materials, transport capabilities, local legislation, taxes and fees. The successful location of the company is one of the most important factors for the success of the project. In this case, you should indicate: 1) the address of the company; 2) features of the premises; 3) availability of own or rented land; 4) the need for reconstruction of buildings; 5) whether there are zonal restrictions on engaging in this type of business in nearby areas; 6) the most common types of business in the region; 7) reasons for choosing the location of the company. It is also necessary to note possible changes in working conditions, for example demographic shifts, changes in municipal regulations.
Existing conditions and their improvement. If the company is already operating, it is necessary to describe the conditions of its work. Description includes production and office space, warehouses and land, machines, special tools and other equipment.
Strategies and plans. It is useful to describe the production process and its components. The latter include: production and procurement strategy, the need to attract additional funding, improve employee skills and other issues. It is necessary to provide an overview of potential co-contractors and suppliers and describe their functions, the degree of their reliability, and indicate fallback options.
It is necessary to briefly describe the approaches to monitoring the quality of production processes and manufactured products. The costs of quality control at each stage of the project are indicated. It is explained how this can reduce service problems and prevent consumer complaints. It also describes how the procurement process will be organized so that the necessary materials and semi-finished products are always available, purchased at the best prices and, therefore, labor costs are kept to a minimum. The section should indicate whether specific connections have been established for the provision of raw materials, materials, components, and energy.
Workforce. A calculation is given of the number of personnel (the management team is discussed in the next section of the business plan) required for high-quality and efficient production of products (services). If the qualifications of the workforce are inadequate to the needs of the company, methods of training personnel to the required level are described and a training program for a new business is discussed in the short-term (first year) and long-term (2-5 years) periods. The costs of training workers at various points during the project are indicated.
Management team.
The management team is the key to turning a good idea into a successful business.
Organization. Introduced With a list of key management positions and persons proposed for each of them.
Key management personnel. A complete description of each key team member is provided (education, experience and achievements of the employee in performing similar functions). The incentives received by the employee, salary increases, promotions, etc. are also indicated here.
Management expenses and property. It is necessary to indicate the salary of each specific member of the administration and compare it with what he received at his last place of work. The shareholding of key personnel, the amount of their contribution (if necessary) and the planned incentives for them with bonuses or shares should be determined.
Board of Directors. It is necessary to discuss the company's attitude to the size and composition of the board, list the members already included in it and note in 1-2 sentences how they can help the company.
Management Consulting and Training Needs . The strengths and weaknesses of the proposed administration and board of directors should be explicitly stated, and the types, extent and timing of management training should be discussed.
Professional Services Support: Powerful, reputable and well-known support organizations can not only provide direct professional support, but also add credibility to the project.
Calendar plan (business schedule).
The calendar plan (business schedule) is the most important part of the business plan. It indicates the timing and relationship of the main events that contribute to the implementation of the project and realize its goals. In addition, this section notes planned goals and draws attention to those points that are most dangerous to the success of the project.
The events that are the most significant or most dangerous to the success of the project are indicated:
Establishing a project (for a new business);
Complete planning and development;
Creation of a prototype (key date: its achievement really indicates the company’s ability to work);
Start of activity of trade missions;
Making products marketable;
Start of work of dealers and distributors;
Ordering materials in the quantities required for production;
Start of production or release of products;
Receiving first applications;
First sales and orders (most important date, directly showing the viability of the company and the need for financing);
Payment of the first bills.
When discussing the main areas of work, it is necessary to note the reason for possible inaccuracies in the schedule, especially if they may require adjustments to material and monetary needs. The schedule must be realistic.
As a business develops, difficulties inevitably arise, and you have to take risks. The business plan contains information about this. Identifying and discussing risk in a project demonstrates the skill of the developers and increases investor confidence. Thus, by taking the lead in identifying and discussing risk, the firm's management communicates to the investor what it is about and how it will overcome these challenges. Therefore, identifying and discussing the main problems and risky points serves the development of the project. It includes a description of the situations in the industry, the sales market, the timing and financing of the initial stage of the project. Among the risky points that can be discussed:
Competitors cutting prices;
Certain Potentially Adverse Industrial Trends;
Inflated development and production costs;
Unattainability of trading plans;
Failure to meet the product implementation schedule;
Difficulties and delays in obtaining the necessary raw materials and supplies;
Difficulties arising in obtaining the necessary bank loans;
Higher than planned cost of implementation and development due to competition in obtaining trained personnel.
Here you should determine which of the potential problems are most dangerous for the project, and describe the firm's proposals for minimizing the impact of adverse circumstances in each risky part of the project.
Financial plan.
This section discusses the project's potential and its funding schedule; it can also serve as an operational plan for the financial management of the project.
Profit and loss forecast . The most decisive of the forecasts being developed is the sales forecast. This section uses previously compiled sales forecasts. At the same time, provisions must be made to cover production costs (or costs of providing services).
Cash Flow Analysis Form . For a new project, cash flow forecasts may be more important than profit forecasts. By projecting sales and capital expenditure levels over a given period, the forecast highlights the need and timing of additional financing and identifies peak working capital requirements.
Balance Sheet Forms . The balance sheet details the use and investment of financial resources required to maintain the projected level of production.
Break-even chart. The break-even chart shows the level of sales (production) required to cover them. The sales level at which all costs are covered is the break-even level of the project.
Cost control . The financial plan should include a summary of how price levels will be achieved and maintained, who will be responsible for monitoring fluctuations in cost elements, how often relevant information will be provided, and how this will impact the budget.
Proposals put forward by the company.
This section of the business plan determines the required amount of funds for project development, the types and amounts of guarantees provided to investors, and a brief description of the prospects for increasing capital.
Financial requirements. By summing up the planned cash flows for three years, the required amount of financing can be established. Determine what amounts can be received under these proposals, what amounts can be received from loans, term loans and from other sources.
Guarantee proposals. It is necessary to justify the types and volumes of guarantees provided to investors. If the guarantees are not limited to common shares (for example, debentures with guarantees, debentures plus shares), the significance, terms and conditions of repayment should be established, and the percentage of ownership that investors will have upon acceptance of offers, issuance of shares or under guarantees should be specified.
Shares: Present the present and future number of shares outstanding, determine the number of shares to be distributed to management and the number of shares that will be issued once the required funding is achieved, and indicate how many shares of the firm will remain unissued and how many of them are reserved for future key employees.
Use of capital . Investors want to know how their money will be spent. It is necessary to provide a brief description of how capital will grow when using them, indicating, if possible, what amounts will be allocated for design, marketing and general production needs.
2 INSURANCE AND INSURANCE GROUP "YUGORIA"
2.1 Insurance business
The insurance business consists in the fact that an entrepreneur, for a certain fee, guarantees the insured compensation for possible loss of property, valuables, or life as a result of an unforeseen disaster. Insurance is a special form of financial and credit entrepreneurship. It consists in the fact that the entrepreneur receives an insurance premium, which is returned only under certain circumstances. Since the likelihood of such circumstances occurring is low, the remaining portion of the contributions forms business income.
How do people usually talk about saving money for a future retirement and insuring their health?
Ivan Steklov, 19 years old, student: “I should already be saving for retirement? Are you kidding me? I’m studying and can’t save anything yet. I’m young, eternal and want to enjoy life!!! I’ll finish my studies, and then...”
Irina Feofanova, 27 years old, HR manager: “I’ve just started my career, what kind of savings are you talking about? I need money for further professional training. I now don’t have enough time and money to save for retirement.”
Valentin Alekseevich Pivovarov, 48 years old, private entrepreneur: “I would really like to start saving for an additional pension, but for now this is impossible, since I have large expenses for the education of my children. But this will not last forever...”
Evgenia Semenovna Alexandrova, 61 years old, pensioner:
“Yes, the pension crept up unnoticed, and its size did not please me... Why didn’t I start saving small amounts every year 20 or 10 years ago? Maybe then I would have had an additional pension. What was I thinking?! Now it’s too late for something- or change. We live together with adult children and grandchildren - this is far from the best solution, but what can I do? I receive a state pension, which is clearly not enough to live on. Now I would enter into a life insurance contract, but is this possible when no longer have health and permanent income?
Mikhail Malitsky, Director of the Insurance Department of the Yugoria-Life Insurance Company, comments:
“Unfortunately or fortunately, such thoughts today are already typical for many people in our country.
Time passes unnoticed. Today we are full of strength and energy, we have plans and financial capabilities to implement them. But days, months, years pass. We are still full of ideas, but, unfortunately, we no longer have enough health and funds to implement them...
Why don't we look ahead and think about the future? After all, we will spend a significant part of the rest of our lives in it.
If you are interested in solving future problems in advance, then our company’s specialists will always help you, who will be able to develop appropriate life and health insurance offers for any age and any needs.”
2.2 Insurance group "Yugoria"
Insurance group "Yugoria" unites:
1. OJSC State Insurance Company Yugoria,
2. JSC IC "Yugoria-Life",
3. OJSC SMK "Yugoria-Med",
4. MSK "ASKO-Zabota" LLC.
2.2.1 State insurance company "Yugoria"
Open Joint-Stock Company GSK "Yugoria" is a universal insurance company. The company has the right to carry out activities in 18 types of insurance and reinsurance using 76 different insurance rules. Special attention The company pays attention to the development of the regional network; branches traditionally account for about 80% of the total volume of insurance premiums. The Company's powerful regional network consists of 57 branches and more than 180 agencies operating in 47 regions of Russia. To optimize management, territorial departments were created in 2005. Currently there are six of them: in Khanty-Mansiysk, Yekaterinburg, Moscow, St. Petersburg, Rostov-on-Don and Novosibirsk.
2.2.2 Insurance company "Yugoria-Life"
CJSC "Insurance Company "Yugoria-Life" is a subsidiary of the State Insurance Company "Yugoria", created on January 19, 2006 in connection with the legal requirement to separate insurance activities by type of insurance. The company's authorized capital is 100 million rubles.
IC "Yugoria-Life" in accordance with the license of the Federal Insurance Supervision Service No. 4014 86, provides life insurance, pension and savings insurance, accident and illness insurance, and medical insurance.
The insurance company "Yugoria-Life" operates through branches of GSK "Yugoria" in 39 regions of Russia.
GSK "Yugoria" transferred all long-term life insurance contracts to the Insurance Company "Yugoria-Life" and from July 1, 2007, long-term life insurance contracts are not concluded at GSK "Yugoria".
2.2.3 Medical insurance company "Yugoria-Med"
OJSC SMK "Yugoria-Med" is a medical insurance organization operating in the field of compulsory medical insurance, voluntary medical insurance, as well as drug insurance. "Yugoria-Med" is a subsidiary of OJSC "State Insurance Company "Yugoria" and a member of the Group of Insurance Companies "Yugoria", which also includes the subsidiary Insurance Company "Yugoria-Life".
The company was founded on December 29, 1997, the company's charter was registered on January 15, 1998.
The paid authorized capital is 64,883,000 rubles. As of September 1, 2010, 97% of the company’s shares belong to OJSC GSK Yugoria, Khanty-Mansiysk.
Insurance license No. 3204 86, issued by the Federal Insurance Supervision Service.
Registration number according to the Unified State Register of Insurance Business Entities is 3204.
Activity of the company:
· JSC SMK "Yugoria-Med" participates in the implementation of the "Program of state guarantees for providing citizens of the Russian Federation living on the territory of the Russian Federation with free medical care»;
· JSC SMK "Yugoria-Med" protects the constitutional rights of citizens insured under compulsory health insurance on the territory of the Russian Federation, organizing the conclusion of insurance contracts for working and non-working citizens, organizing a medical and economic examination of the volume of medical care, organizing an examination of the quality of medical care provided to the insured;
· JSC SMK "Yugoria-Med" provides additional drug insurance in the system of compulsory health insurance for citizens living in the Russian Federation, who, in accordance with the current legislation of the Russian Federation, are granted the right to receive medicines free of charge, in accordance with the approved List of medicines dispensed on preferential prescriptions ;
· OJSC SMK "Yugoria-Med" improves the quality of life of its clients by helping them receive first-class medical services under compulsory and voluntary health insurance programs;
· JSC SMK "Yugoria-Med" participates in the popularization of health insurance on the territory of the Russian Federation.
In 2009, SMK YUGORIYA-MED OJSC accrued 6,571 million rubles in insurance premiums. At the end of 2008, profit growth was 36% compared to 2007.
"Yugoria-Med" and MSMS
Since February 28, 2005, OJSC SMK "Yugoria-Med" has been a member of the Interregional Union of Medical Insurers.
The President of the MSMS is Tatyana Vladimirovna Yakovleva, Chairman of the Health Protection Committee of the State Duma of the Russian Federation.
General Director of MSMS is Dmitry Yurievich Kuznetsov.
The Interregional Union of Medical Insurers, which is the only professional organization representing the interests of medical insurance organizations in all regions of Russia, was registered in January 2003. The main goal of the Union is to protect the interests of its members by combining and coordinating joint efforts aimed at optimizing the conditions for the development of health insurance as an integral part of the medical and social protection of citizens of the Russian Federation.
The activities of the Union are carried out in close cooperation with the Administration of the President of the Russian Federation, Federal Assembly RF, State Duma of the Russian Federation, the Ministry of Finance of the Russian Federation and the Federal Insurance Supervision Service, the Federal Antimonopoly Service, the Federal Compulsory Medical Insurance Fund, as well as with other federal ministries and departments, professional and mass media.
Contacts are being established with representatives of the executive and legislative authorities in the regions. MSMS is a member of the Chamber of Commerce and Industry of the Russian Federation, the All-Russian Union of Insurers. Currently, more than 70 organizations are members of the union. In accordance with the decision of the Presidium of the IUCN, Representative Offices of the Union are opened in the Federal Districts of the Russian Federation. The governing bodies of MSMS are the Presidium and the Executive Directorate. The executive directorate includes the president of the Union, the general director, and department employees.
The Interregional Union of Medical Insurers includes the following associations:
· Association of Insurance Medical Organizations of St. Petersburg;
· Association of Insurance Organizations Stavropol Territory;
· Moscow Association of Medical Insurance Organizations;
· Siberian Interregional Association of Insurers (Novosibirsk).
As a member of the MSMS, Yugoria-Med can more effectively solve its problems, both in the medium and long term. Entry into the Interregional Union of Medical Insurers indicates the reliability and high professional rating of the company.
2.2.4 "ASKO-Care"
In July 2007, the Yugoria Insurance Group acquired the Omsk medical insurance company ASKO-Zabota, one of the leading companies providing compulsory medical insurance in the Omsk region, as well as non-departmental examination of the quality of medical care.
In 1995, the medical insurance company ASKO-ZABOTA was formed as part of the ASKO insurance group. During this period of unstable economic situation, the company not only survived, but also took a leading position in the compulsory health insurance market in the Omsk region. The key to success in this case was financial stability companies and competent work with policyholders.
Over the years, a team has been formed consisting of professionals in their field, and the company’s policy regarding clients and medical institutions has been developed. Original developments have emerged in the field of protecting the rights of the insured, which has made it possible to provide a decent level of quality of medical care to our insured.
Convenience for clients and protection of their interests are at the forefront of the work of the company’s specialists. For the convenience of clients, the company has opened representative offices in 27 districts of the region; a central office and three additional offices operate in the city. Customer service is provided both in the company's offices and on site.
Protection of clients' interests is carried out in the form of constant monitoring of the quality of medical care, as well as based on the facts of clients' contacts to the company. Experienced experts - doctors highest category, research fellows at Omsk State medical academy The quality of medical care provided to our clients is monitored. Specialists in the department for protecting the rights of the insured promptly consider complaints from our clients, take appropriate measures, and, if necessary, involve company lawyers to protect the interests of the insured in pre-trial and judicial proceedings.
All institutions of the Omsk region and the city of Omsk have been cooperating for a long time and fruitfully with MSK “ASKO-ZABOTA”, taking into account the comments made by experts of insurance companies. If disputes arise when protecting the rights of our insured, in most cases it is possible to reach an acceptable solution out of court.
In 2007, MSK ASKO-Zabota became part of the Yugoria insurance group. This brand is synonymous with a stable position in the insurance market, which has significantly strengthened our position.
2.3 State insurance company "Yugoria"
2.3.1 Company characteristics
Activities:
Financial risk insurance
Accident and illness insurance
Additional health insurance
Property insurance
Liability Insurance
General Director - Volkov Vladimir Vladimirovich
General Director of JSC GSK Yugoria Vladimir Volkov is a member of the Expert Council on Insurance under the Federal Service for Environmental, Technological and Nuclear Supervision; Corresponding Member of the International Academy of Management; winner of the Russian competition “Manager of the Year - 2005”; laureate of the “Golden Salamander” award in the category “Head of the Interregional Insurance Company of 2005”; laureate of the “Russian Financial Olympus - 2006” award in the category “Leader of the Year” for an impeccable business reputation and competent leadership of a team of professionals who turned OJSC State Insurance Company Yugoria into a phenomenon in the Russian insurance market. In 2007, V.V. Volkov was elected as a deputy to the Tyumen Regional Duma.
Federal district: Ural Federal District
Region: Khanty-Mansiysk Autonomous Okrug
Address: 628012, Khanty-Mansiysk, Komsomolskaya Street, 61
Chief accountant: Belkina Irina Konstantinovna
Partners, clients:
1OJSC "Khanty-Mansiysk Bank"
2JSC "Ugra Leasing Company"
3JSC "Northern Shipping Company"
4Administration of the Tyumen region
5Government of Khanty-Mansiysk Autonomous Okrug
6Utair airline
7Duma of the Khanty-Mansiysk Autonomous Okrug-Ugra
8JSC "Ural Pipe Plant "Uraltrubprom"
9JSC "Steel Industry Company"
1MNTK "Eye Microsurgery" named after S. Fedorov
History of the company:
In 1997:
· 10/29/1997 the Law of the Khanty-Mansiysk Autonomous Okrug “On the regional state insurance company of the Khanty-Mansiysk Autonomous Okrug” was adopted
· 11/13/1997 By order of the State Property Management Committee of the Khanty-Mansiysk Autonomous Okrug, the State Unitary Enterprise “Khanty-Mansiysk State Insurance Company “Yugoria” was established with an authorized capital of 50 million rubles.
· On December 18, 1997, a certificate of state registration of the Company was received.
· Obtained a license to conduct insurance activities for 15 types of personal and property insurance.
· Branches were opened in the following cities: Surgut, Tyumen, Nizhnevartovsk, Nefteyugansk, Sovetsky, Moscow.
· Number of employees - 18 people.
In 1998 - 1999:
· Obtained a license to conduct insurance activities for 17 types of personal and property insurance.
· A subsidiary company of GSK "Yugoria" was established - OJSC "Insurance Medical Company "Yugoria-Med"
· Branches were opened in the cities of Surgut, Mezhdurechensky, Nizhnevartovsk, Sovetsky, Tyumen.
· Number of employees - 41 people.
In 2000:
· 03/20/2000 By order of the Committee for State Property Management of the Khanty-Mansiysk Autonomous Okrug, Vladimir Vladimirovich Volkov was appointed General Director of GSK Yugoria.
· GSK "Yugoria" became a member of the All-Russian Union of Insurers (VSU), the general director of the company became a member of the Presidium of the VSU.
· Increase in authorized capital to 250 million rubles.
· Number of employees - 56 people.
In 2001:
· Insurance fees amounted to more than 500 million rubles.
· Number of employees - 90 people.
In 2002:
· Branches were opened in the cities of Beloyarsky and Nyagan.
· Obtained a license to conduct insurance activities for 6 types of personal and property insurance.
· Number of employees - 101 people.
In 2003:
· Increase in authorized capital to 1,327 million rubles
· Obtaining a license for the right to conduct insurance activities for 25 types of insurance.
· Obtaining a license for compulsory civil liability insurance of vehicle owners (OSAGO).
· Opening of branches in the cities: Krasnodar, Novosibirsk, Magnitogorsk, St. Petersburg, Samara, Yekaterinburg, Yugorsk.
· Insurance fees amounted to more than 1 billion rubles.
· Number of employees - 113 people.
· 07/16/2004 By order of the Department of State Property of the Khanty-Mansiysk Autonomous Okrug - Ugra, the State Unitary Enterprise “State Insurance Company “Yugoria” was transformed into the Open Joint Stock Company “State Insurance Company “Yugoria”.
· Obtained a license to conduct insurance activities for 22 types of personal and property insurance.
· Opening of branches in Omsk, Volgograd, Astrakhan, Kaliningrad, Urai, Tula, Rostov-on-Don, Tolyatti, Pyatigorsk, Barnaul.
· Insurance fees amounted to more than 2 billion rubles.
· Number of employees - 448
In 2005:
· Obtained a license to conduct insurance activities for 72 types of personal and property insurance.
· Four Territorial Administrations were created in Khanty-Mansiysk, Yekaterinburg, Moscow and Rostov-on-Don.
· Branches were opened in Perm, Kazan, Makhachkala, Nalchik, Nizhny Novgorod and Chelyabinsk.
· The total number of branches is 32.
· Insurance premiums amounted to 3.837 billion rubles.
· Number of employees - 1304 people.
In 2006 year:
· Authorized capital amounted to 1,333 billion rubles
· Insurance premiums amounted to 5.270 billion rubles
· Branches were opened in the cities of Arkhangelsk, Veliky Novgorod, Vologda, Gorno-Altaisk, Kirov, Kurgan, Murmansk, Orel, Orenburg, Petrozavodsk, Pskov, Smolensk, Stavropol, Ufa, Yaroslavl. Leningrad regional and Moscow regional branches were created.
· The total number of branches is 51.
· The Department of Insurance in the Agro-Industrial Complex was established.
· The Directorate for Advanced Projects and Information Technologies was created.
· Number of employees - 1700 people.
In 2007:
· Authorized capital amounted to 1,833 billion rubles
· Branches were opened in the cities of Novy Urengoy, Syktyvkar, Saratov, Noyabrsk.
· Total number of branches - 54
· The Territorial Administration was created in St. Petersburg.
· GSK "Yugoria" became a full member of the National Union of Liability Insurers of the Russian Federation.
· Insurance group "Yugoria" acquired LLC "Medical insurance company "ASKO-Zabota" (Omsk)
· The transfer of long-term life insurance contracts from GSK "Yugoria" to the Insurance Company "Yugoria-Life" was carried out in accordance with federal legislation.
· Number of employees - 2376 people.
Figure 1 (Appendix B) shows the growth in the number of employees of GSK "Yugoria" for 2001 -2010.
The sole shareholder of the company is the Khanty-Mansiysk Autonomous Okrug - Ugra, represented by the Department of State Property of the Khanty-Mansiysk Autonomous Okrug - Ugra. The company's authorized capital is 1.833 billion rubles.
2.3.2 Analysis economic activity companies
The company's high growth rates over the past six years have significantly outpaced the rate of development of the insurance industry in Russia. The average annual increase in insurance premiums over the past five years is 57%, which is twice the market average in Russia. GSK "Yugoria" annually strengthens its position in the Russian market and steadily rises in the ratings of the largest insurers. Priority development goals of the company: growth of capitalization, implementation of international operating standards. Yugoriya associates its prospects with the introduction of higher standards of activity, improving the quality of the insurance product and service.
Figure 2 (Appendix D) shows the dynamics of the number of insurance contracts concluded by JSC GSK "Yugoria" for 2002 - 2010.
Figure 3 (Appendix D) shows the dynamics of insurance payments of JSC GSK Yugoria for 2002 - 2010.
GSK "Yugoria" is a member of professional associations: the All-Russian Union of Insurers, the Russian Union of Auto Insurers, the Association of Builders of Russia, the National Union of Liability Insurers, the Russian Agricultural Insurance Pool. The company also entered into a tripartite cooperation agreement with the All-Russian public organization"Russian Society of Appraisers" and the Non-Profit Partnership "Partnership for Promoting the Activities of Firms Accredited by the Russian Society of Appraisers".
Our offers to legal entities:
Insurance of property: buildings and structures, production equipment, furniture, computer and office equipment, inventory owned by the enterprise or for which the enterprise is responsible;
Transport insurance: cargo and passenger cars, buses, special and road construction equipment of domestic and foreign production
Transportation and cargo insurance;
Enterprise civil liability insurance;
Insurance against forced interruption in production;
Insurance of leasing, factoring and credit operations;
Insurance of construction and installation works;
Agricultural risks insurance,
Insurance of hazardous production facilities.
Personnel insurance against accidents and illnesses;
Life insurance;
Additional pension insurance;
Voluntary health insurance;
Insurance for employees traveling on business trips abroad, in Russia and the CIS countries,
Compulsory motor third party liability insurance (MTPL), as well as other types, depending on the profile of the enterprise or organization.
Additional (Special) offers for financial institutions:
Real estate insurance.
Insurance of bank valuables in vaults and operational cash desks.
Insurance of ATMs and cash in them.
Insurance of cash-in-transit transportation.
Insurance of property pledged.
Mortgage insurance;
Life and disability insurance for the borrower.
Insurance of the borrower's liability to third parties.
Insurance of leasing and factoring operations.
Insurance of bank credit and debit cards and others.
Our offers to individuals:
Comprehensive motor insurance (CASCO)
Compulsory motor third party liability insurance (MTPL)
Voluntary motor liability insurance
Apartment insurance,
Liability insurance for neighbors
Comprehensive property and liability insurance,
Insurance of cottages and buildings
Home contents insurance
Voluntary health insurance
Insurance for traveling abroad
Insurance for travelers in Russia and the CIS
Divers insurance
Accident insurance
Life insurance
Additional pension insurance, and others.
OJSC State Insurance Company Yugoria offers insurance against risks arising from the operation of water transport, namely:
Ship insurance under CASCO
Shipowners liability insurance
The policy area is unlimited. The only condition is that any of the route points must be located on the territory of the Russian Federation. Insurers are legal entities (an individual can also act as a cargo insurer), both residents of the Russian Federation and non-residents. Preliminary approval of the application is possible by e-mail, confirmation by fax. The courier will deliver the original documents within one to two days.
Settlement of losses. Settlement of losses in the field of cargo transportation is handled directly by the cargo insurance department. This speeds up collection times necessary documents, consideration of claims, because All information regarding the contract is kept by the lead manager. Thus, the period from submitting a package of all necessary documents to the insurance company until the payment of insurance compensation (if a positive decision is made) usually does not exceed two weeks.
Additional services for our clients. If necessary, the company is ready to organize survey control over loading, unloading, reloading of cargo, as well as to assess the amount of damage and settle claims of our clients anywhere in the world. It is also possible to organize security for your cargo. Taking into account our experience in the field of cargo transportation, the company can recommend you a carrier or forwarder who specializes specifically in your direction, the nature of the cargo: - cargo insurance; - carrier liability insurance; - forwarder liability insurance.
Table 1 Development Strategy (Appendix E) provides data on the results and development strategy of the company GSK Yugoria.
Table 1 shows the company's operating results in 2010 and 2011.
Table 1 - Development strategy
| № | Name | 2010 | 2011 |
| 1 | Volume of insurance premiums, thousand rubles, including |
6 678 755 | 9 127 500 |
| 1.1 | personal | 925 000 | 1 260 000 |
| 1.2 | property | 4 600 000 | 6 200 000 |
| 1.3 | responsibility | 185 000 | 300 000 |
| 1.4 | mandatory | 968 755 | 1 367 500 |
| 2 | of them: | ||
| 2.1 | Head company | 1 680 844 | 1 450 000 |
| 2.2 | Khanty-Mansiysk TU | 1 906 884 | 2 384 000 |
| 2.3 | Ekaterinburg TU | 781 619 | 1 318 000 |
| 2.4 | Ekaterinburg branch | 320 343 | 475 000 |
| 2.5 | Moscow TU | 1 107 206 | 1 985 000 |
| 2.6 | St. Petersburg Technical University | 761 298 | 940 500 |
| 2.7 | TU Rostov-on-Don | 440 904 | 950 000 |
| 2.8 | Novosibirsk TU | 0 | 750 000 |
Table 2 shows that the increase in the company’s insurance premiums was approximately 36%, including approximately 68% for the Yekaterinburg TU. The growth of insurance premiums of the Yekaterinburg branch amounted to 48%.
The table shows that constant growth of approximately 30% annually is expected.
Priority development goals of the company: growth of capitalization, implementation of international operating standards. Yugoria associates its prospects with the introduction of higher standards of activity, improving the quality of the insurance product and customer service. This year the Company plans to increase the number of branches to 70. The Yugoria network plans to develop at its own expense, without attracting investors. New branches will be opened in the Siberian and Central Federal Districts - in the cities of Krasnoyarsk, Kemerovo, Irkutsk, Tomsk, Voronezh, Bryansk, Ryazan and others. 62 branches of Yugoria operate in 51 constituent entities of Russia.
The uniqueness of GSK "Yugoria" lies in the ability to harmoniously combine the reliability of the state and the dynamism of a commercial structure. The company's high growth rates are significantly ahead of the development rates of the insurance industry in Russia. GSK "Yugoria" annually strengthens its position in the Russian market, steadily rising in the ranking of the largest insurers in Russia. Priority development goals of the company: growth of capitalization, implementation of international operating standards.
The company pays special attention to the development of the regional network; branches account for about 80% of the total volume of insurance premiums. GSK "Yugoria" annually strengthens its position in the Russian market, steadily rising in the ranking of the largest insurers in Russia. The company's regional network consists of sixty-two branches and more than 180 agencies operating in 51 regions of Russia. To optimize management, territorial departments were created in 2005. Currently there are six of them: in Khanty-Mansiysk, Yekaterinburg, Moscow, St. Petersburg, Novosibirsk and Rostov-on-Don.
Yugoria associates its prospects with the introduction of higher operating standards, improving the quality of the insurance product and customer service.
2.3.4 Human resources
The state insurance company "Yugoria" offers interesting and promising work that will allow you to realize your professional potential, gain new experience and decent remuneration.
Personnel is a strategic resource and corporate value of the Company.
In 2007, Ugoria was awarded the title of “Attractive Employer” , according to the results of a study conducted for the first time by the Research Center of the job and personnel search portal SuperJob.ru among companies - direct employers.
If anyone is interested in one of the vacancies, you need to fill out a form or send your resume to email address: [email protected], and the company will be happy to consider a candidate for available positions.
If no suitable vacancies are currently found, you must fill out a form to register in the Candidate Database. The company will definitely contact the applicant when vacancies arise that will match his professional skills and work experience.
3 BUSINESS PLAN OPENING A REPRESENTATIVE OFFICE OF GSK "YUGORIYA" IN THE CITY OF ASBESTOS
3.1 Market research in Asbest
The services of GSK "Yugoria" are in demand in different regions Russia. The company has its own branch in Yekaterinburg.
Due to the sufficient remoteness of Yekaterinburg, the services of GSK "Yugoria" are difficult to access for residents of Asbest. For the convenience of clients, it is proposed to open a representative office of the Yekaterinburg branch in Asbest. Small marketing studies of the insurance market and its prospects in Asbest were carried out. Both legal entities and individuals took part in the research. Individuals were asked to complete a short questionnaire to find the necessary information. Legal entities were interviewed by company representatives personally.
Research has shown that these services will be in demand. Legal entities and individuals are interested in the emergence of a representative office of GSK “Yugoria”, therefore they will do their best to contribute to the implementation of this project.
The business plan is drawn up in accordance with the structure and content of the sections proposed in the theoretical part of this thesis.
3.2 Sections of the business plan
3.2.1 Summary section or summary
The basic data on the business plan is given:
The company is a representative office of the Yekaterinburg branch of GSK "Yugoria".
Organizational and legal form – JSC.
Type of activity – insurance.
Sales volume (revenue) – 4250 thousand rubles.
The main competitors are Rosgosstrakh.
Labor costs, headcount – 5 people, 537 thousand rubles.
Costs for the acquisition of fixed assets and intangible assets – 310.5 thousand rubles.
Total operating costs – 3055 thousand rubles.
The amount of taxes is 289 thousand rubles.
Net profit – 896 thousand rubles.
Profitability – 29%
Payback period for investments – 0.8 years
3.2.2 Industry, firm and its products
GSK "Yugoria" provides various types of insurance services. The company has been operating on the market since 1997.
The average annual increase in insurance premiums (insurance fees) over the past five years is 57%, which is twice the average market indicators in Russia. GSK "Yugoria" annually strengthens its position in the Russian market and steadily rises in the ratings of the largest insurers.
Table 3 - Volume of insurance premium
(thousand roubles.)
As can be seen from this table, GSK "Yugoria" assumes the development of the Yekaterinburg branch. The expected growth will be approximately 30% annually. There are no plans to open a branch in Asbest. Therefore, it is proposed to open a Representative Office in Asbest. The implementation of this proposal is realistic and justified.
This Representative Office is expected to provide the most popular insurance services in the region. For this purpose, some research was carried out on the activities of the Yekaterinburg branch.
List of proposed services:
Voluntary motor vehicle insurance.
Cargo insurance.
Insurance of property of legal entities against fire and other dangers.
Property insurance for individuals.
Voluntary insurance against accidents and illnesses.
Comprehensive insurance for citizens traveling outside their permanent place of residence.
Voluntary health insurance.
Farm animal insurance.
Comprehensive mortgage insurance.
Compulsory civil liability insurance for vehicle owners, carried out in accordance with the Rules for compulsory civil liability insurance for vehicle owners, approved by Decree of the Government of the Russian Federation of May 7, 2003 No. 263.
Business risk insurance.
3.2.3 Market research and sales analysis
The services offered will be in demand by legal entities and individuals in Asbest.
Let us assume that the income of the Representative Office in Asbest in 2010 will be 0.5% of the total income of the Yekaterinburg branch. This will amount to (850,000.0.005) 4,250 thousand rubles. in year.
Tariff rates for different kinds services depend on many factors (amount of insurance, car engine power, etc.), so the company calculated the average cost of one policy sold. It amounted to 8040 rubles.
We will evaluate the sales market and calculate the possible revenue of the Representative Office.
Table 4 - Market assessment
3.2.4 Marketing plan
The marketing plan reveals in detail the policy in the field of trade and service, prices, and advertising strategy, which allows you to achieve the planned sales volumes and take an appropriate place in the market.
To set prices, they use the structure of tariff rates for licensed types of insurance for branches of JSC GSK Yugoria, approved on February 1, 2009 by General Director V.V. Volkov.
Table 5 - Structure of tariff rates
| Name of insurance type (rules) | Structure (%) | ||||
| Net rate | |||||
| business expenses | incl. Commission remuneration | ||||
| 1. Voluntary motor vehicle insurance (04) | 70 | 30 | 25 | ||
| 2. Cargo insurance (05) | 70 | 30 | 25 | ||
| 3. Insurance of property of legal entities against fire and other dangers (06) | 70 | 30 | 25 | ||
| 4. Property insurance for individuals (08) | 70 | 30 | 25 | ||
| 5. Voluntary insurance against accidents and illnesses (12) | 70 | 30 | 25 | ||
| 6. Comprehensive insurance for citizens traveling outside their permanent place of residence (20) | 50 | 50 | 30 | ||
| 7. Voluntary health insurance (23) | 80 | 20 | 10 | ||
| 8. Farm animal insurance (27) | 70 | 30 | 25 | ||
| 9. Comprehensive mortgage insurance (34) | 70 | 30 | 25 | ||
| 10. Compulsory insurance of civil liability of vehicle owners, carried out in accordance with the Rules of compulsory insurance of civil liability of vehicle owners | 77 | 23 | 10 | ||
| 11. Business risk insurance (54) | 70 | 30 | 25 | ||
Services will be provided to residents and organizations of the city of Asbest and surrounding villages.
If necessary, agents are expected to travel to the location (apartment, place of work, organization).
3.2.5 Intentions and development plans
In the event of an increase in demand for other types of insurance in this region, the Representative Office is ready to expand the list of services provided.
Agents will undergo ongoing retraining at the parent company. Costs will only be for business travel, training is free.
The quality of service provision will be constantly improved, the time for processing documents will be reduced, and modern technologies will be used. The costs for this will be 10% of the total costs (100 thousand rubles from Table 10).
In the future, the Representative Office intends to provide services to other companies of the Ugoria group, if the studies conducted show their need in the given region.
3.2.6 Operational plan
It is proposed to open a representative office of the Yekaterinburg branch of JSC GSK Yugoria in the city of Asbest. The representative office will be located in the city center.
To conduct activities, premises of 50 m2 will be rented from the municipality on preferential terms. The rent will be 300 thousand rubles per year. and will include payment for space, utilities, electricity, waste removal and security.
Rent is paid three months in advance (72 thousand rubles)
No renovation of the premises is required; it is suitable for this activity.
To conduct business, the following non-current assets are required.
Table 6 - Fixed assets and intangible assets
Name |
Quantity, pcs. | Price, thousand rubles | Initial cost, rub. | Depreciation rate, % | Shock absorption deductions, |
Remainder Cost, rub. | ||
| Unit | General | |||||||
| 1 | Office desk (computer) | 4 | 4 | 16 | 18,4 | 20 | 3,68 | 14,72 |
| 2 | Office chair | 4 | 1,5 | 6 | 6,9 | 20 | 1,38 | 5,52 |
| 3 | Simple chair | 10 | 0,5 | 5 | 5,5 | 20 | 1,1 | 4,4 |
| 4 | Computer | 4 | 20 | 80 | 92 | 25 | 23 | 69 |
| 5 | Printer | 4 | 3 | 12 | 13,8 | 25 | 3,45 | 10,35 |
| 6 | Xerox | 1 | 2 | 2 | 2,3 | 25 | 0,58 | 1,72 |
| 7 | Telephone set | 4 | 1 | 4 | 4,6 | 25 | 1,15 | 3,45 |
| 8 | Household equipment | - | - | - | 20 | 50 | 10 | 10 |
| 10 | NMA | 30 | 10 | 3 | 27 | |||
| 9 | Computer program | 2 | 10 | 20 | 21 | 10 | 2,1 | 18,9 |
| Organizational expenses | - | - | - | 96 | 50 | 48 | 48 | |
| Total: | 310,5 | 97,5 | 213 | |||||
The initial cost includes transportation and procurement costs of 15%.
The depreciation rate is calculated taking into account the standard service life.
Residual value is the difference between the original cost and depreciation (depreciation).
To conduct its activities, the Representative Office needs materials. Information about the required materials is given in Table 7
Table 7 - Materials
To conduct its activities, the Representative Office will use the services of third-party organizations:
Utel - landline communication services. Expenses will amount to 50 thousand rubles.
- Beeline - services mobile communications. Expenses will amount to 36 thousand rubles.
Rospechat – postal services and periodicals. Expenses will amount to 16 thousand rubles.
Taxi "Mig" - transport services. Expenses will amount to 15 thousand rubles.
Sberbank - bank services. Expenses will amount to 20 thousand rubles.
Program support. Expenses will amount to 10 thousand rubles.
To carry out its activities, the Representative Office requires labor. According to preliminary calculations, the Representative Office will sell 529 policies per year. The norm per agent is on average 3 policies per day. According to the norm, one agent is enough (529:12:3), but the Representative Office will work 12 hours a day, and the agent will be on site. Therefore, two agents will be hired. Information about personnel is given in Table 8.
Table 8 - Personnel
The unified social tax will be (26%) for the year 44 thousand rubles.
Total labor costs are 212 thousand rubles.
Premium payments to employees will be calculated as a percentage of the number of services provided. We budget approximately 50 thousand rubles for the year.
Total labor costs will amount to 262 thousand rubles.
The company will operate from 8-00 to 20-00 without interruption.
Day off is Sunday.
The agents' work schedule is in shifts.
Agents will undergo retraining (travel allowance will amount to 30 thousand rubles).
3.2.7 Control command
The Representative Office will be managed by a director. The financial affairs of the Representative Office will be managed by an accountant.
Information about management personnel is given in Table 9.
Table 9 – Management personnel
The unified social tax will amount to 57 thousand rubles.
Labor costs 275 thousand rubles.
Travel expenses will amount to 20 thousand rubles.
Working hours: from 9-00 to 18-00.
Management personnel must meet the requirements - at least 5 years of work experience, experience in this type of activity, qualifications (first category), etc.
3.2.8 Schedule (business schedule)
Preparation for the implementation of this project (obtaining permission, concluding contracts, acquiring the necessary resources, etc.) is expected from 10/01/2009.
The opening of the branch is expected on 01/01/2011.
The first sales of insurance policies are expected from 01/01/2011.
Achievement of full capabilities is expected from 03/01/2011.
3.2.9 Critical risk points and problems
As a business develops, difficulties inevitably arise, and you have to take risks.
The Representative Office in the city of Asbest will have competitors: Rosgosstrakh and several commercial organizations.
The advantages of the Representative Office will be a wider range of types of insurance, an individual approach to each client, a flexible pricing policy, highly qualified specialists, good service, excellent reputation of the parent company, its name.
The most dangerous risk for the implementation of this project may be the lack of a sufficient number of clients. To prevent this risk, the Representative Office may in the near future expand the list of insurance operations, since the Yekaterinburg branch of GSK Yugoria OJSC provides a much larger range of services. It is possible to provide services from other companies of the Yugoria group: JSC IC "Yugoria-Life", OJSC SMK "Yugoria-Med", LLC MSK "ASKO-Zabota". Clients of the Representative Office may be offered a flexible tariff policy for the provision of services.
Let's calculate the break-even point:
Tb = SFI / (Ci – Pii), unit of cont. (1)
where SFI is the total fixed (constant) costs;
Ci – price per unit of product, work;
PIi – variable costs per unit of production, work.
TB = 723000 / (8040 – 4) = 90 policies
The calculation was made according to the data in table 3.2.10.1 Costs.
3.2.10 Financial plan
To open this Representative Office you will need 750 thousand rubles.
The necessary funds will be provided by GSK "Yugoria".
This amount is required for the purchase of fixed assets, intangible assets, rent for the first three months, and a reserve for paying expenses for the first three months.
The estimated costs of the Representative Office for the year will be:
Table 10 - Costs
According to the company's data, insurance payments comprise approximately 45% of insurance premiums.
Insurance activities are taxed at a rate of 25% on income less expenses and insurance payments to clients.
Income for the year will amount to 4250 thousand rubles. (Table 3.2.3.1).
The tax base will be 4250 – 3055 = 1195 thousand rubles.
The tax will be 1195. 0.25 = 299 thousand rubles.
The profit of the Representative Office for the year will be 1195–299 = 896 thousand rubles.
A financial results report is prepared in Table 11.
Table 11 - Profit statement
Based on the previously made calculations, a short balance sheet is compiled in Table 12.
Table 12 – Balance
3.2.11 Proposals put forward by the company
To open the Representative Office of the Yekaterinburg branch of GSK Yugoria, 750 thousand rubles will be required.
The return on investment will be (896/750). 100 = 119%
The profitability of the activity will be (896/3055). 100 = 29%
The payback period for the investment is 750/896 = 0.8 years.
Let's summarize the data in table 13. (Appendix G).
As can be seen from the calculations, the activities of the Representative Office should be very profitable.
The profit received will allow us to expand the types of insurance in Asbest, without requiring additional investments from GSK Yugoria.
CONCLUSION
The purpose of the thesis was to consolidate theoretical knowledge and practical skills on organizational and financial issues of creating the functioning of a company, as well as independent calculation of basic technical and financial indicators.
As expected, when completing the thesis, a number of specific tasks related to the study and analysis of additional material on a given topic were solved, skills in working with specialized literature, skills in selecting and systematizing information, presenting it in the most concise, but quite complete form, presentation materials in the form of tables, graphs, etc.
The object of development is a business plan for opening a representative office of the Yekaterinburg branch of the State Insurance Company "Yugoria" in the city of Asbest.
The first part of the thesis presents a theoretical part that reveals the purpose of the function, tasks, etc.), the development process (development stages, development participants, sources of financing) and the content of the business plan (list of all sections and their summary).
The second part of the thesis examines insurance activities using the example of a specific insurance group “Yugoria”, which includes JSC GSK “Yugoria”, a division of which is proposed to be opened in the city of Asbest. The composition of the Ugoria group is considered, and the activities of all the companies included in it are briefly outlined.
The Yugoria company is presented in some detail: the content of its activities, management, history, performance results for the given period and development prospects for the coming years. Conducted brief analysis company activities. Based on this analysis, it was concluded that the opening of a representative office of the Yekaterinburg branch of GSK Yugoria in the city of Asbest is realistic and justified.
The third practical part presents a business plan for opening such a Representative Office.
First, the results of a study of the insurance market in the city of Asbest are proposed, on the basis of which it can be concluded that such a Representative Office is necessary. The company's activities are in demand and its services will be in demand.
1. Summary.
All key data of interest to future investors is brought together.
2. Industry, company and its products .
The main type of activity – insurance – is described.
3. Market research and sales analysis.
The possible volume of sales of the Representative Office's services (529 policies) and the possible volume of insurance premiums (4,250 thousand rubles) were calculated. Possible competitors are identified.
4. Marketing plan.
The principle of formation of tariff rates, the distribution of advertising and the Representative Office and the costs of it are given.
5. Intentions and development plans.
Ways of development, expansion of the list of services, training of personnel, and improvement of the quality of service provision are proposed. The costs for this are also indicated.
6. Operational plan.
Calculations of the necessary non-current and current assets, calculation of personnel and management team, labor costs and unified social tax deductions (fixed assets and materials for 398.5 thousand rubles;
2 agents, a cleaner, labor costs 272 thousand rubles).
7. Management team.
Information is provided on the management of this Representative Office (director, accountant, salary 275 thousand rubles)
8. Calendar plan (business schedule).
The timing of the main events of the company is given: opening, achieving full capacity.
9. Critical risk points and problems.
Possible risks are given and the break-even point is calculated (90 policies).
10. Financial plan.
All necessary financial calculations have been made (costs 3055 thousand rubles, taxes 299 thousand rubles, net profit 896 thousand rubles)
11. Proposals put forward by the company.
The financial results of the activity were calculated (profitability 29%, payback period 0.8 years), proposals were put forward for the development of activity.
All calculations indicate that opening a representative office of the Yekaterinburg branch of GSK Yugoria is necessary, realistic and very profitable.
I believe that the goal of this thesis has been achieved, all the assigned tasks have been solved.
LIST OF SOURCES USED
1. Business plan. Methodological materials. Ed. ON THE. Kolesnikova, N.A., Mironova, A.D. - M.: Finance and Statistics, 2009..
2. Lipsits, I.V. A business plan is the basis for success. - M.: Mechanical Engineering, 2010.
3. Lipsits, I.V. Economy without secrets. - M.: Delo, 2009.
5. Golubkov, E.P. etc. Marketing: choosing the best solution. - M.: Economics, 2010.
6. Yanchevsky, V.G. Management, marketing, business: Business people about entrepreneurship. - M.: Polymya, 2008.
8. Burov, V.P. and others. Business plan: drawing up methodology. - M.: TsIPK AP, 2009.
9. Edited by Manilovsky, R.G. Business plan: teaching materials. - M.: Finance and Statistics, 2009.
10. Chechevitsyna, L.N. Economic analysis: Tutorial. – Rostov n/d: publishing house “Phoenix”, 2010. – 448 p.
11. Kotler, F. Fundamentals of Marketing. – M.: Progress, 2010.
12. Siegel, E.S., Schultz, L.A., Ford, B.R., Carney, D.S. Drawing up a business plan - 2nd edition. M.: John Wiley and Sons, 2008.
13. Idrisov, A.B. Planning and analysis of investment efficiency. – M.: PRO-INVEST Consulting, 2007.
14. Behrens, W., Havranek, P.M. Guide to the preparation of industrial feasibility studies, new, revised and expanded edition. - M.: JSC Interexpert, 2009.
15. American school management. Business plan, or How to increase the profitability of your enterprise. – M.: SO Ankil, 2010.
16. Berl, G., Kirshner, P. Instant business plan: twelve quick steps to success, - M.: Delo, 2009.
17. Reports of JSC GSK Yugoria, 2008-2010.
Appendix A
Main functions of a business plan
Internal activities External functions
Development of a development strategy Attracting investments for the implementation of projects
Development and implementation of projects
creation of new products (services) Justification for inclusion of projects in state
Assessment of internal scientific, (regional) technical, production programs and obtaining funds from and commercial potential of centralized sources
Preparation and implementation Obtaining banking measures for the introduction of loans for new technologies and the acquisition of equipment
Selection of new and retraining of sales of company shares of own workers and specialists in the stock market
Control over the financial justification of the need for the results of activities of creating joint ventures and enterprises
Measures to reduce using the degree of risk in the activities of foreign capital and other forms of joint
Formation of a favorable image of the company
Development and implementation of activities for financial industrial groups
Bankruptcy prevention plan
Appendix B
Diagram 1. Functions of a business plan
Appendix B
Diagram 2. Business planning process
Dynamics of growth in the number of employees
OJSC GSK Yugoria:
Figure 1. Dynamics of growth in the number of employees.
Appendix D
Dynamics of the number of insurance contracts concluded by JSC GSK "Yugoria":
Figure 2. Dynamics of the number of insurance contracts.
Appendix D
Dynamics of insurance payments
JSC GSK Yugoria, thousand rubles:
Figure 3. Dynamics of insurance payments.
Appendix G
Table 13 - Technical and economic indicators
In this material:
Insurance – profitable business. The competition in this market is serious, but by investing once and organizing everything correctly, you can get a solid monthly profit. Find out how to open an insurance company, what you need to start a business, and how to get maximum profit with minimal investment.
Insurance business for a beginner: the basics
Let's figure out how relevant the insurance business is, what pros and cons it has, and what risk factors can overtake you when opening such a company.
Relevance
You can often hear: “No one is immune from...”. And this applies to absolutely everything. People insure everything - from real estate to own life. A master will insure your eyesight, a singer will insure your voice, a perfumer will insure your sense of smell, etc. Today even pets are insured.
Insurance is so popular that people even insure their health against certain diseases (for example, tuberculosis). Moreover, there is both voluntary and compulsory insurance.
The decision to open an insurance company will always be the right one, since such a service was, is and will be relevant in the market.
Pros and cons of the insurance business
Positive aspects of opening an insurance company or agency:
- High business profitability;
- Increasing need for insurance among various segments of the population;
- The ability to “customize” your services to a specific region of the country as flexibly as possible;
- You can open a franchise company and offer services on behalf of any reputable company.
Flaws:
- Difficulties with registration large number documents at the stage of opening a company;
- A large amount for the formation of authorized capital - from 20 million rubles;
- The need to constantly monitor the market and competitors so that the company always stays afloat;
- The risk of various unforeseen situations arising due to the frequent appeal of people for insurance payments.
Remember! The insurance business is a profitable, but very risky business. Therefore, you need to initially weigh all the pros and cons, and only after that start organizing your business.
Risks
The risks of an insurance company's business plan are divided into categories.
current data is provided after ordering the power supply Market
Problems can arise at any stage of the formation/operation of an enterprise:
- Decreased demand for certain services due to reductions in insurance payments;
- Unfair competition from other companies;
- Rising prices for equipment and materials that are extremely important for the normal functioning of the company;
- Increasing the number of branches of competing firms;
- Increased cost of utilities, rent, etc.
Financial
Such risks include delays in payment for goods by counterparties, choosing the “wrong” investor, problems with paying loans, collateral, etc.
Internal risks
The main problems may lie directly within the company's employees themselves. It is imperative to assess these risks, because the slightest conflicts and misunderstandings between employees can lead to serious problems:
- Strikes. Because of them, work can simply stop indefinitely. A common reason is late wages;
- Disclosure of trade secrets. All important data will be transferred to competitors;
- Court proceedings, fines, inspections. May arise due to the selection of unprofessional employees.
The most profitable types of insurance
One of the innovations is insurance of large sums of money lying in bank accounts. This money covers very substantial deposits, and the cost of such insurance is quite high.
Property insurance will always be popular. Moreover, both ordinary apartment owners and owners of country villas apply - the price of such property can be several million dollars.
The third profitable type of insurance is auto insurance. This includes both compulsory insurance of the MTPL type and other voluntary types, which allow you not to worry about the theft of your car or its damage by ill-wishers.
Organization plan
To open an insurance company, you need to go through several mandatory stages, and take each one as seriously as possible. These include:
- Registration of an enterprise;
- Rent of suitable office space;
- Selection of equipment and furniture;
- Recruitment.
Enterprise registration
It is mandatory to register a legal entity. The company can have any form of ownership: LLC (limited liability company), CJSC or OJSC (closed or open joint-stock company).
From the types of activities you need to choose one that contains the word “insurance”. But if it is planned to carry out examinations as part of the work, then they must also have a direct connection with insurance.
Important! Even at the preparatory stage, you need to decide whether the company will insure life. This is important because, subject to the provision of such a service, the authorized capital must be at least 20 million rubles.
After registering a company, you need to obtain a license allowing you to provide insurance services. To do this, you need to submit to the Ministry of Finance:
- Constituent documentation of the company;
- Business plan;
- Rules for the provision of insurance services;
- Tariff calculations.
The director of the enterprise will need to confirm his qualifications, work experience, and received legal education. It takes about a year to obtain a license, and you will need to pay a state fee for this process. If everything goes “smoothly”, the company will be included in the state register of insurance companies, and you can immediately begin work.
Office space
The office must have a representative appearance that inspires confidence - no one will take their money to a company whose office is located in an old garage. Every client wants to come to a company with a respectable image and good reputation.
The area of the premises must be chosen so as to accommodate not only the working staff, but also to make visiting clients feel comfortable. If the company is its own, then it must have a head office (at least 600 sq. m.) and city branches (200-300 sq. m. each).
The premises must be renovated, clean air, and an atmosphere that inspires confidence. The design of the offices should be the same, and in a single corporate style, which creates a good impression.
Furniture and equipment
Should form a positive opinion among visitors. It is worth buying new, modern furniture of the highest quality. For each workplace you need to purchase equipment:
- Modern computer;
- A printer;
- Telephone;
- Fax machine;
- Scanner.
It is necessary to provide each employee with reliable access to the Internet and a dedicated telephone line. Must be in the office Appliances: kettle, refrigerator, microwave, etc.
Employees
You need to hire professionals who can not only serve visitors, but quickly solve pressing problems. Neglect interviews, studying resumes, etc. not worth it.
If examinations are carried out, then you can not recruit experts into your staff, but hire a specialist “from the outside”, concluding an official deal with him. But, it is important to carefully study the company you plan to contact and check all its documentation.
Advertising campaign: attracting the maximum number of customers
You need to promote your company based on the package of services provided. For example, if health insurance is advertised, it is worth contacting large market enterprises directly that want to improve working conditions for their employees.
The most popular channels for attracting customers are banks and car dealerships. The downside is that most insurance companies use them. Initially, you will have to reduce prices for services in order to win your first customers.
The third channel for attracting clients is expanding the range of services provided. You can use a cross-selling insurance scheme when several insurance options are offered at once.
The money side of the issue
As part of the business plan for an insurance agency or company, you need to calculate the initial and ongoing costs, and then predict the expected profit.
Initial investment and running costs
For each specific case, the initial amount will be different. It also depends on the region of Russia. But, speaking of approximate initial investments, it is worth mentioning the amount from 7,000,000 rubles.
What does it include:
- Rent of premises – 50,000 rubles. in a year;
- Preparation of documentation – 700-900 thousand rubles;
- Renovation of the premises and purchase of equipment – 2 million rubles;
- Advertising campaign – 3 million rubles;
- Administrative costs – 1 million rubles.
Total: 7 million rubles.
Ongoing costs will consist of:
- Issues wages employees;
- Phone/Internet payments;
- Payments for utilities;
- Unforeseen expenses (for example, due to equipment breakdown);
- Printing advertising literature;
- Promoting the company on the market;
- Etc.
Profitability
In order for profits from the insurance business to constantly grow, you need to carefully monitor all changes in the market and monitor the activities of competitors. This is the only way to create an effective marketing plan and quickly make changes to the list of company services.
Important! To increase profits, it is not necessary to raise prices for services; it is much better to expand the list of services. The average profit with this approach in a city with a population of 1 million or more will be 5-10 million rubles.
Read more about the profitability of the insurance business and payback periods
If the business plan of the insurance company was prepared according to all the rules, then the profitability of the business will be about 2% per month of the invested funds. To assess profitability as accurately as possible, you need to divide monthly expenses by profit. On average, investments in an insurance company will pay off in about 4-5 years.