Our Smalltown operation enjoys its own private parking lot for our clients and our staff. A second story was recently added to our office which will allow ample room for expansion. It is presently used for training, staff meetings, and conferences.
Acme Insurance is committed to providing professional sales and service for its insurance customers. We have established what we consider to be an excellent reputation in our area, and are the largest multi-line insurance broker in our trading area.
Acme Insurance provides home, automobile, and business insurance in Smalltown District. We take pride in knowing that for over 50 years we have helped our clients to find the best coverage at the right price that suits their needs and expectations. In the event of a claim, our clients know that we are there to provide help and counsel to ensure a fast, speedy claim settlement.
Like other independent brokers, we issue binders and new policies, endorsements and process renewals.
We also provide insurance services to non-clients, such as lawyers and mortgagees, to ensure our mutual clients have proper coverage and binding notes in place for the purchase of homes, businesses, and automobiles.
Since we are brokers, (not agents such as Co-operators), we have access to a range of standard and specialty markets.
We have recently produced a pamphlet titled “Insurance Partners” which stresses that a successful insurance partnership between the client, the broker, and the company is based upon a new concept.
Not only do the broker and the company take responsibility for proper protection and indemnity in the event of loss, but in the 1990’s, the client must also take his share of responsibility to insure the safety of his property by keeping it well maintained and using qualified professionals to update or change the heating, electrical, and plumbing systems in his home. We stress that multiple claims or claims arising out of poor maintenance may adversely affect his insurance.
In addition to the above, our brokerage uses a number of boilerplate letters on our computer system that are sent along with various types of policies explaining unique features or limitations in the contracts to avoid possible Errors and Omissions claims. They also encourage our clients to contact us about reviewing their coverage and promote other products and services we provide.
We call upon the ample resources of our insurance markets to help with any unusual situations which occur and may present a problem finding proper coverage for our client.
When we required trained inspectors for evaluating the safety of our insured’s solid fuel heating devices and installations, we sent one of our own producers for training and who now has W.E.T.T. certification.
We are proud that Acme Insurance Inc. has never had an errors and omissions loss, but to protect our clients against that possibility, we have in place Errors and Omissions Insurance through our Insurance Brokers Association in the amount of $1,000,000 (Employer’s Reinsurance).
We have been fully computerized since 1982 and both offices and some of our producer’s homes are connected to our main computer server located in Smalltown.
As of February 1996, we have entered into an agreement with our present computer vendor, Teleglobe, to update our computer system to a Pentium server, and to Release 74, which allows upload/download capability with our companies, as well as email.
We have elected to stay with the Teleglobe Tabs system since our staff is familiar with the program. It has exhibited excellent, reliable telecommunications ability. The high speed ISDN lines required for MS Windows-based communication between our branch office as well as our home offices are not available in our trading area, so at present we will not migrate to the new MS Windows-based products available from Teleglobe or Agency Manager.
Although Stan Smith started out as a life insurance agent, the “life” part of our business represents only 1% of our sales. We are looking to strengthen this part of our operation in the future. Due to the complexity and number of life and disability products, we are presently using an outside service: Atlantic-Smith Insurance out of North Town, although two of our general insurance producers have life agent licenses.
We are in the process of setting up a substandard property market. We feel that there is a need for this service and that it can be profitable if strictly underwritten with proper controls in place.
Recent demographic studies in our area reveal a total year-round population of approximately 13,000, which rises in the summer to approximately 25,000. We have a relatively high number of seniors and many younger, newly-formed families dependent on government assistance living mostly in a rural, unserviced, thinly populated area. This makes it costly to service our clients. Long distance phone bills represent our second largest expense (our two offices each have their own toll free phone numbers) and the cost of visiting our insureds to do home inspections is time consuming due to the large area we service.
We are targeting seniors which have proven to be a profitable, stable market for our brokerage in spite of our present difficult economy.
We are fortunate that we have not yet had the intrusion to a large degree of mass merchandising programs like “Silver Power.” Smaller brokers have made inroads into our traditional rural business, with low cost farm markets that sell home and auto insurance. We understand that some of these markets are in a poor financial position and may cease to be a factor in the future.
Our market consists of senior citizens, lower-income young families (many of who are on social assistance) and the small, family-run business (many of which are seasonal and based on the tourist trade). There are a few industrial risks and those that are located here are branches of larger industries which obtain their insurance through large brokers in Bigtown.
Our target market is the seniors, family business, and middle income earners in our area. Statistics show that over 42% of our permanent population is above 45 years of age. The average family income is approximately $27,000 and the unemployment rate 9%.
We are cautious about encouraging business from lower income prospects since they tend to have wood heat, homes in poor repair, and many attempt to install and repair their own plumbing, wiring, and heating systems.
Another market of concern is out-of-area clients who may have been payment or claim problems to local brokers and attempt to find a distant broker to provide coverage instead of making the necessary adjustments in their own lifestyle to prevent claims.
Clients who have moved repeatedly can be difficult to obtain proper underwriting information and past claims experience on, and we feel our staff is to be commended for their ability to properly assess if a client should be placed to our standard markets or would be better served by a specialty company.
Market Analysis | |||||||
1996 | 1997 | 1998 | 1999 | 2000 | |||
Potential Customers | Growth | CAGR | |||||
Ages 0 to 14 | 2% | 2,550 | 2,601 | 2,653 | 2,706 | 2,760 | 2.00% |
Ages 15 to 44 | 2% | 4,760 | 4,855 | 4,952 | 5,051 | 5,152 | 2.00% |
Ages 45 to 64 | 5% | 2,885 | 3,029 | 3,180 | 3,339 | 3,506 | 4.99% |
Ages 65 to 74 | 5% | 1,280 | 1,344 | 1,411 | 1,482 | 1,556 | 5.00% |
Other | 2% | 1,000 | 1,020 | 1,040 | 1,061 | 1,082 | 1.99% |
Total | 3.03% | 12,475 | 12,849 | 13,236 | 13,639 | 14,056 | 3.03% |
The past few years have seen tremendous upheaval in the insurance industry. The number of players has decreased in both the broker and company communities. The automobile product has, in the mind of the public, become unaffordable, unavailable, and impossible to understand. The recession has curtailed insureds from properly maintaining their homes and automobiles, and to exacerbate the situation, many clients have turned to wood heat and started doing their own repairs and maintenance which may have increased the number and severity of claims. Insurance fraud has become a major issue for the entire insurance industry.
Our traditional close relationship with our companies has been strained. Brokers are concerned that in spite of commission reductions, quotas, contract cancellations, and refusal to write new auto business by some markets, they now may find themselves in competition with some of the traditional broker distribution companies that are setting up direct marketing facilities and branches. The banks, even though thwarted by the federal government in its last budget to retail insurance from their premises, will continue pressure on the government and now have announced they will open stand alone insurance offices to retail insurance.
The new federal government is close to adopting a new automobile contract that hopefully will make it affordable, understandable, and available to our clients. A profitable automobile product will entice the companies to aggressively seek new sales and more brokers will see companies offering contracts.
Local independent brokers Cal Roberts, Patrick C. Johnson, Rob Champlain
Mass Markets
Our own Companies
Mass merchandise programs heavily advertised over the radio such as “Gray Power”
Group Plans – teachers, public employees
The main volume of income for our brokerage is generated by automobile premiums because they are relatively higher priced to insure than property, and because automobile insurance is mandatory in the region.
As stated previously, our success is dependent on our staff and our companies convincing our clients and prospective clients that price, although important, is not the only criteria for the purchase of insurance. Our advertising stresses that we have two offices, open six days a week with after-hours support and we have been an active, concerned, community involved, local business since 1938.
Still, price is very important and we must work with our markets to ensure that our insurance products are available and affordable to a large part of the market. It is the broker’s job to ensure the client understands what he is buying, and if circumstances dictate a lower-priced product, we must make our insured aware of the trade-off in coverage versus price.
Our trading area is rural. Premiums are relatively low and therefore not subject to large brokerages or specialty direct writers mounting aggressive advertising campaigns to bring in business. There are few group plans providing insurance coverage with the exception of our teachers. Smalltown has two independent brokers and a Co-Operators agent, Nexttown has two independent brokers, and Southtown has one. We have just started to see some move by locals to “Silver Power” and other specialty retailers who advertise on radio and television. The banks are still a future unknown.
We have depended in the past on a small advertisement in our local newspaper, listings in the Yellow Pages, and word of mouth. We must begin to investigate alternate ways to put our name in front of the public.
Our target market is Smalltown District. The ideal client is claims-free aged between 45 – 75 who owns his own home and car and is debt free. Has exhibited stable family patterns and is known and respected in the community.
A similar profile should be used for commercial prospects with emphasis placed on the well-run, profitable business that has exhibited good claims experience.
Our customers are especially sensitive to value. We must ensure that our price and service are perceived to be good value to our client.
Our markets must offer several payment options to our clients that are convenient to the client, not just to the company. Example – payment on insured’s preferred day of month, not on the company’s, and accepting payment by credit or debit card. Many insureds are on a fixed income and receive their income on a set day of each month or a paycheck on a particular day.
We encourage our companies to “Target Market.” Many of our companies are now focusing on what they have perceived to be profitable niche markets, where they can offer a competitive product with little, if any, competition.
We are seeing our commercial markets now moving toward basic coverage and limiting the “bells and whistles,” all-risk products available to only those clients who have modern, well-managed, profitable, low-risk operations. This should help stabilize pricing and, even more important, ensure that there is an insurance market available for most risks. Continued insistence by the industry on better protection, i.e. fire and burglar alarms, upgrading of buildings, etc., have started to lower loss ratios.
Many of the larger insurance markets have increased minimum premiums to $1,000 for any commercial package policy. Our Lloyds market should be able to accommodate these customers with a minimum premium of approximately $600.
We want to emphasize the benefit of dealing with professionals who live and work in our client’s area. We know their needs and their problems and we have a local reputation to protect, unlike an out-of-town market. If the out-of-town broker fails to provide proper cover or advice, they lose one client. We could stand to lose many if the public perceives a professional failure on our part.
Competitive prices for our identified target markets. Discounts of up to 25% for claims-free seniors who renew their home insurance with us.
Careful inspection and the judicious use of deductibles and warranties for insureds using wood stoves should help alleviate company concerns about solid fuel heating devices. Competitive pricing is not an important factor to attract business because competition is very limited for primary wood heat houses in our area. This may provide a chance to pick up all of the insured’s business because, in many instances, they contact us after being told by their previous broker that, in spite of their claims-free status, the broker doesn’t want their house insurance.
Business partners provide us the opportunity to sell lower-priced, basic insurance coverage to our client. Many clients have expressed interest in retaining part or all of the insurance risk, especially for burglary. They feel that if they have installed central alarms and bars, they can take the chance of self insurance.
We are investigating sales incentives for our producers. They must encourage profitable new business and have a retention component. Presently, our producers receive $10 for every new policy written in our office, with the exception of recreational vehicles.
The following table and related charts show our present sales forecast. We are projecting sales to grow at a moderate but steady pace for the coming year and to continue into 1997.
Sales Forecast | |||
1996 | 1997 | 1998 | |
Sales | |||
Sales | $677,600 | $700,000 | $750,000 |
Other | $0 | $0 | $0 |
Total Sales | $677,600 | $700,000 | $750,000 |
Direct Cost of Sales | 1996 | 1997 | 1998 |
Sales | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $0 | $0 | $0 |
Some of our present companies have surveyed us to investigate co-operative advertising but we have not committed to any programs at present.
Acme Insurance is really a group of small brokerages housed under one name and location. Our producers are each responsible for a book of business. They sell, service, handle claims and are responsible for their accounts receivable. We have found over the years that our clients prefer to deal with one broker who is aware of their particular needs.
We have listed our plan milestones in the table below.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Select Seniors | 1/1/1996 | 12/31/1996 | $0 | P. Smith | Sales |
Broker Acquisition Course | 4/17/1996 | 9/9/1996 | $250 | P. Smith | Finance |
Company Contacts | 1/3/1996 | 12/31/1996 | $1,000 | P. Smith | Marketing |
Install Release 74 | 4/8/1996 | 7/8/1996 | $0 | J. Smith | Staff |
Release 74 Training | 4/2/1996 | 8/2/1996 | $300 | Staff | Staff |
Jason – CAIB Course 2 | 5/4/1996 | 6/24/1996 | $395 | J. Smith | Staff |
Upload/download Training | 1/7/1996 | 3/1/1996 | $1,000 | J. Smith | Staff |
Stephen – Remove Restriction | 1/9/1996 | 1/10/1996 | $400 | Staff | Staff |
Mandatory Staff – 3hr | 1/10/1996 | 1/10/1996 | $1,000 | P. Smith | Management |
Totals | $4,345 |
Management summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">.
Acme Insurance is slow to hire new people and loyal to those whom we have hired. We hire only when there is a vacancy or growth dictates more staff. Most of our people have been in our organization over 15 years, which allows our clients and our companies to form long lasting business relationships with their broker.
Our brokerage is divided by client instead of service. Each broker is responsible not only to renew and service a client’s insurance, they also are responsible for collection and claims. We feel a client wants to deal with his or her broker, especially in a claim situation, instead of an unknown “specialist” whom they feel does not represent their interests.
Sales Forecast | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Sales | |||||||||||||
Sales | 0% | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 | |
Direct Cost of Sales | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Personnel Plan | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Name or Title or Group | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Name or Title or Group | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Name or Title or Group | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Pro Forma Profit and Loss | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Sales | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Gross Margin | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 | |
Gross Margin % | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
Expenses | |||||||||||||
Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Marketing/Promotion | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Profit Before Interest and Taxes | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 | |
EBITDA | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 | |
Interest Expense | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | |
Taxes Incurred | $15,070 | $7,420 | $12,220 | $12,370 | $15,970 | $18,370 | $18,970 | $18,370 | $19,870 | $22,870 | $15,370 | $12,850 | |
Net Profit | $35,163 | $17,313 | $28,513 | $28,863 | $37,263 | $42,863 | $44,263 | $42,863 | $46,363 | $53,363 | $35,863 | $29,983 | |
Net Profit/Sales | 65.12% | 60.75% | 64.07% | 64.14% | 65.37% | 65.94% | 66.06% | 65.94% | 66.23% | 66.70% | 65.21% | 64.34% |
Pro Forma Cash Flow | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $13,500 | $7,125 | $11,125 | $11,250 | $14,250 | $16,250 | $16,750 | $16,250 | $17,500 | $20,000 | $13,750 | $11,650 | |
Cash from Receivables | $127,970 | $129,320 | $39,863 | $21,775 | $33,388 | $34,050 | $42,950 | $48,800 | $50,200 | $48,875 | $52,750 | $59,375 | |
Subtotal Cash from Operations | $141,470 | $136,445 | $50,988 | $33,025 | $47,638 | $50,300 | $59,700 | $65,050 | $67,700 | $68,875 | $66,500 | $71,025 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $141,470 | $136,445 | $50,988 | $33,025 | $47,638 | $50,300 | $59,700 | $65,050 | $67,700 | $68,875 | $66,500 | $71,025 | |
Expenditures | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Expenditures from Operations | |||||||||||||
Cash Spending | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Bill Payments | $336,628 | $18,582 | $11,347 | $15,992 | $16,257 | $19,817 | $22,157 | $22,717 | $22,187 | $23,737 | $26,387 | $19,053 | |
Subtotal Spent on Operations | $336,628 | $18,582 | $11,347 | $15,992 | $16,257 | $19,817 | $22,157 | $22,717 | $22,187 | $23,737 | $26,387 | $19,053 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $336,628 | $18,582 | $11,347 | $15,992 | $16,257 | $19,817 | $22,157 | $22,717 | $22,187 | $23,737 | $26,387 | $19,053 | |
Net Cash Flow | ($195,158) | $117,863 | $39,641 | $17,033 | $31,381 | $30,483 | $37,543 | $42,333 | $45,513 | $45,138 | $40,113 | $51,972 | |
Cash Balance | $207,482 | $325,345 | $364,986 | $382,019 | $413,400 | $443,883 | $481,426 | $523,759 | $569,272 | $614,410 | $654,523 | $706,495 |
Pro Forma Balance Sheet | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $402,640 | $207,482 | $325,345 | $364,986 | $382,019 | $413,400 | $443,883 | $481,426 | $523,759 | $569,272 | $614,410 | $654,523 | $706,495 |
Accounts Receivable | $255,940 | $168,470 | $60,525 | $54,038 | $66,013 | $75,375 | $90,075 | $97,375 | $97,325 | $99,625 | $110,750 | $99,250 | $74,825 |
Other Current Assets | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 |
Total Current Assets | $967,717 | $685,089 | $695,007 | $728,160 | $757,168 | $797,912 | $843,095 | $887,938 | $930,221 | $978,034 | $1,034,297 | $1,062,910 | $1,090,457 |
Long-term Assets | |||||||||||||
Long-term Assets | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 |
Accumulated Depreciation | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 |
Total Long-term Assets | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 |
Total Assets | $1,251,641 | $969,013 | $978,931 | $1,012,084 | $1,041,092 | $1,081,836 | $1,127,019 | $1,171,862 | $1,214,145 | $1,261,958 | $1,318,221 | $1,346,834 | $1,374,381 |
Liabilities and Capital | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Current Liabilities | |||||||||||||
Accounts Payable | $336,000 | $18,209 | $10,814 | $15,454 | $15,599 | $19,079 | $21,399 | $21,979 | $21,399 | $22,849 | $25,749 | $18,499 | $16,063 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 |
Subtotal Current Liabilities | $436,362 | $118,571 | $111,176 | $115,816 | $115,961 | $119,441 | $121,761 | $122,341 | $121,761 | $123,211 | $126,111 | $118,861 | $116,425 |
Long-term Liabilities | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 |
Total Liabilities | $888,398 | $570,607 | $563,212 | $567,852 | $567,997 | $571,477 | $573,797 | $574,377 | $573,797 | $575,247 | $578,147 | $570,897 | $568,461 |
Paid-in Capital | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 |
Retained Earnings | $88,096 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 |
Earnings | $275,047 | $35,163 | $52,476 | $80,989 | $109,852 | $147,116 | $189,979 | $234,242 | $277,105 | $323,468 | $376,831 | $412,694 | $442,677 |
Total Capital | $363,243 | $398,406 | $415,719 | $444,232 | $473,095 | $510,359 | $553,222 | $597,485 | $640,348 | $686,711 | $740,074 | $775,937 | $805,920 |
Total Liabilities and Capital | $1,251,641 | $969,013 | $978,931 | $1,012,084 | $1,041,092 | $1,081,836 | $1,127,019 | $1,171,862 | $1,214,145 | $1,261,958 | $1,318,221 | $1,346,834 | $1,374,381 |
Net Worth | $363,243 | $398,406 | $415,719 | $444,232 | $473,095 | $510,359 | $553,222 | $597,485 | $640,348 | $686,711 | $740,074 | $775,937 | $805,920 |
Fill-in-the-blanks and automatic financials make it easy.
No thanks, I prefer writing 40-page documents.
Discover the world’s #1 plan building software
01 84 60 03 50
Welcome to the comprehensive guide on developing an effective business plan for your insurance brokerage firm. In this article, we will delve into the essential components that will shape the success of your venture – (Insurance Broker Ltd). From crafting a compelling executive summary to formulating robust marketing strategies and financial projections, we will walk you through each step of the process.
With a strong focus on customer satisfaction and personalized insurance solutions, (Insurance Broker Ltd) aims to become a trusted partner in safeguarding the interests of individuals and businesses alike. Join us as we explore the intricate details of our business plan, designed to establish a prominent presence in the dynamic insurance market.
Let’s embark on this journey to discover the key elements that will shape the future of (Insurance Broker Ltd) and set the stage for sustainable growth and prosperity in the insurance brokerage industry
Call on an expert to help you realise your project.
Fast turnaround times , Attractive prices
Introduction.
The executive summary of (Insurance Broker Ltd) provides an overview of the company’s business plan, outlining its core objectives, strategies, and financial projections. This section serves as a concise and compelling snapshot of the entire business plan, aimed at capturing the attention of potential investors, partners, and stakeholders.
(Insurance Broker Ltd) is a dynamic and customer-focused insurance brokerage firm committed to providing tailored insurance solutions to individuals and businesses. With a team of seasoned insurance professionals and a diverse portfolio of insurance products, we aim to become a market leader in the industry.
Our mission is to simplify insurance for our clients, offering them the best coverage options that suit their unique needs. We strive to be the most trusted and preferred insurance brokerage, guiding our clients through every step of their insurance journey.
1. Customer-Centric Approach: We prioritize our clients and their satisfaction above all else. 2. Integrity and Transparency: We uphold the highest ethical standards and transparency in our dealings. 3. Expertise and Knowledge: Our team comprises experienced professionals with in-depth insurance knowledge. 4. Innovation: We continuously adapt and innovate to stay ahead in a rapidly changing industry.
1. Expand Market Presence: (Insurance Broker Ltd) aims to establish a strong presence in the local and regional insurance market. 2. Diversify Product Portfolio: We plan to enhance our product range to cater to diverse customer needs. 3. Strengthen Client Relationships: Building lasting relationships with our clients is a priority. 4. Achieve Profitable Growth: We aim to achieve consistent and sustainable growth while maintaining profitability.
Based on our financial projections, (Insurance Broker Ltd) anticipates steady revenue growth over the next three years. With efficient cost management and increasing customer acquisition, we expect healthy profit margins.
The executive summary highlights (Insurance Broker Ltd)’s vision, mission, and key objectives. As we embark on this exciting journey, we invite potential partners and investors to join us in realizing our vision of becoming the preferred insurance brokerage in the industry
At (Insurance Broker Ltd), we take pride in offering a comprehensive range of insurance products and services that cater to the diverse needs of our clients. Our offerings are carefully curated to ensure that individuals, families, and businesses can safeguard themselves against various risks.
1. Life Insurance: We provide life insurance policies to offer financial protection to policyholders’ beneficiaries in the event of their demise. Our team assists clients in choosing the right coverage amount and policy type based on their financial goals and family needs. 2. Health Insurance: We offer a range of health insurance plans that cover medical expenses, ensuring our clients receive quality healthcare without financial strain. 3. Property Insurance: Our property insurance policies safeguard residential and commercial properties against losses caused by fire, theft, natural disasters, and other perils. 4. Auto Insurance: We provide auto insurance coverage to protect vehicles and drivers from accidents, theft, and liabilities. 5. Business Insurance: (Insurance Broker Ltd) specializes in business insurance solutions, including general liability, commercial property, workers’ compensation, and professional liability insurance. 6. Travel Insurance: Our travel insurance plans offer coverage for medical emergencies, trip cancellations, lost baggage, and other travel-related risks.
1. Risk Assessment: Our expert team conducts a thorough risk assessment for individuals and businesses to identify potential vulnerabilities and recommend suitable insurance solutions. 2. Policy Customization: We tailor insurance policies to meet the unique requirements of our clients, ensuring they get the most appropriate coverage. 3. Claims Assistance: (Insurance Broker Ltd) provides dedicated claims support, guiding clients through the claims process and ensuring a seamless experience. 4. Client Education: We believe in empowering our clients with knowledge about insurance products, helping them make informed decisions.
1. Personalized Approach: We understand that each client’s insurance needs are different, and we go the extra mile to personalize our services accordingly. 2. Extensive Network: With strong relationships with leading insurance carriers, we offer a wide range of products to choose from. 3. Expert Guidance: Our team of experienced insurance professionals provides expert advice and guidance to clients, helping them make the best insurance choices. 4. Customer Support: (Insurance Broker Ltd) prides itself on providing exceptional customer support, ensuring a smooth and hassle-free experience for our clients.
(Insurance Broker Ltd) is committed to delivering top-notch insurance products and services, securing the future of our clients and their assets. Our dedication to excellence and customer satisfaction sets us apart in the competitive insurance brokerage industry
Industry overview.
The insurance brokerage industry plays a vital role in connecting insurance providers with individuals and businesses seeking coverage. As the demand for insurance products and services continues to rise, (Insurance Broker Ltd) aims to capitalize on the opportunities presented by this growing market.
The insurance market is vast and diverse, encompassing various sectors such as life, health, property, auto, and business insurance. In recent years, the industry has witnessed steady growth, driven by increased awareness about the importance of insurance, evolving regulatory frameworks, and the expansion of businesses.
(Insurance Broker Ltd) has identified its target market as follows: 1. Individuals and Families: We aim to cater to individuals and families seeking life insurance, health insurance, and other personal coverage options to protect their loved ones and assets. 2. Small and Medium-Sized Businesses: Our focus also extends to small and medium-sized businesses in need of comprehensive insurance solutions to safeguard their operations and employees.
The insurance brokerage sector is competitive, with several established players and new entrants vying for market share. (Insurance Broker Ltd) recognizes the importance of differentiation and will leverage its personalized approach, extensive network of insurance carriers, and superior customer support to stand out from the competition.
Strengths: • Experienced and Knowledgeable Team • Strong Insurance Carrier Partnerships • Customer-Centric Approach Weaknesses: • Limited Brand Awareness in the Market • Initial Marketing and Establishment Costs Opportunities: • Growing Demand for Insurance Products • Expansion of Target Market Reach • Technological Advancements in the Industry Threats: • Intense Market Competition • Changing Regulatory Landscape • Economic Volatility
To effectively reach and engage with its target audience, (Insurance Broker Ltd) will employ a multi-faceted marketing approach, including: 1. Digital Marketing: Utilizing social media, search engine optimization, and online advertising to increase brand visibility and attract potential clients. 2. Networking and Partnerships: Building strong relationships with other businesses and professionals in related industries to generate referrals and leads. 3. Content Marketing: Creating informative and educational content related to insurance topics, establishing the company as an industry thought leader.
Through a thorough analysis of the insurance brokerage industry and the identification of its target market, (Insurance Broker Ltd) is poised to capitalize on the growing demand for insurance products and services. By leveraging its strengths and implementing effective marketing strategies, the company is well-positioned for success in a competitive market.
Marketing objectives.
(Insurance Broker Ltd) has outlined the following key marketing objectives to achieve its business goals: 1. Increase Brand Awareness: Build a strong and recognizable brand in the insurance brokerage industry through targeted marketing efforts. 2. Expand Online Presence: Enhance the company’s online visibility through effective digital marketing strategies and a user-friendly website. 3. Generate Quality Leads: Implement lead generation campaigns to attract potential clients who are actively seeking insurance solutions.
To reach its target audience effectively, (Insurance Broker Ltd) will leverage various marketing channels: 1. Social Media: Engage with potential clients through platforms like Facebook, LinkedIn, and Twitter, sharing valuable content and updates. 2. Content Marketing: Publish blog posts, articles, and informative guides on the company website to showcase expertise and attract organic traffic. 3. Email Marketing: Implement email campaigns to nurture leads, deliver personalized offers, and stay connected with existing clients. 4. Search Engine Optimization (SEO): Optimize the website with relevant keywords to improve search engine rankings and increase organic traffic. 5. Networking Events: Participate in industry events, seminars, and networking opportunities to establish connections and generate referrals.
(Insurance Broker Ltd) will adopt a consultative sales approach, focusing on building trust and rapport with potential clients. The sales team will: 1. Understand Client Needs: Thoroughly assess clients’ insurance requirements and financial goals to offer tailored solutions. 2. Educate Clients: Provide comprehensive information about different insurance products, helping clients make informed decisions. 3. Offer Customized Solutions: Create personalized insurance packages that align with clients’ specific needs and budget constraints. 4. Provide Exceptional Customer Service: Ensure a seamless and pleasant experience throughout the entire sales process and beyond.
To evaluate the effectiveness of its marketing and sales efforts, (Insurance Broker Ltd) will track key performance indicators (KPIs) such as: 1. Website Traffic: Monitor website traffic and engagement metrics to assess the effectiveness of digital marketing efforts. 2. Lead Conversion Rate: Measure the percentage of leads that convert into actual clients. 3. Customer Retention Rate: Evaluate the percentage of clients who renew their insurance policies with the company. 4. Referral Rate: Track the number of referrals received from satisfied clients and business partners.
(Insurance Broker Ltd) recognizes the importance of a well-defined marketing and sales strategy in achieving its business objectives. By leveraging targeted marketing channels, adopting a consultative sales approach, and continuously measuring performance, the company aims to build a strong brand presence, attract quality leads, and provide exceptional service to its clients
Management team overview.
The success of (Insurance Broker Ltd) heavily relies on the expertise and dedication of its management team. Led by visionary leaders, the team comprises experienced professionals with a deep understanding of the insurance industry and a commitment to achieving the company’s objectives.
As the founder and CEO of (Insurance Broker Ltd), [Founder’s Name] brings a wealth of experience in the insurance sector. With a proven track record of successful ventures, [Founder’s Name] is the driving force behind the company’s vision, mission, and strategic direction.
[COO’s Name] is a dynamic and results-oriented professional with extensive experience in insurance operations. With a focus on optimizing efficiency and streamlining processes, [COO’s Name] ensures smooth day-to-day operations and seamless client experiences.
As the Director of Sales, [Sales Director’s Name] leads the sales team with a passion for building strong client relationships. With a customer-centric approach, [Sales Director’s Name] empowers the team to understand client needs and deliver tailored insurance solutions.
(Insurance Broker Ltd) has a team of skilled insurance specialists and advisors who bring diverse expertise across various insurance categories. These professionals possess in-depth knowledge of insurance products and are dedicated to helping clients make well-informed decisions.
The company’s support staff plays a crucial role in ensuring the seamless functioning of day-to-day operations. From customer service representatives to administrative personnel, every team member is committed to delivering exceptional service and support.
(Insurance Broker Ltd) places great emphasis on continuous learning and development. The management team regularly conducts training programs to enhance employees’ skills and keep them updated with the latest industry trends and regulations.
The management team at (Insurance Broker Ltd) is the backbone of the company’s success, combining experience, expertise, and a customer-centric approach. With visionary leadership and a team of dedicated professionals, the company is well-positioned to achieve its business objectives and provide outstanding service to its clients.
Financial overview.
In this section, we present the financial forecasts and projections for (Insurance Broker Ltd) over the next three years. These projections are based on a thorough analysis of the insurance market, the company’s growth strategies, and anticipated changes in the industry landscape.
Year 1: (Current Year) For the first year of operations, (Insurance Broker Ltd) projects a conservative yet steady growth in revenue. As the company establishes its presence and builds a client base, we anticipate revenue from new policy sales to contribute significantly to the overall income. Year 2: (Next Year) In the second year, with increased brand awareness and expanding market reach, (Insurance Broker Ltd) foresees a substantial rise in revenue. The company’s reputation for providing excellent service and tailored insurance solutions is expected to attract more clients. Year 3: (Following Year) By the third year, (Insurance Broker Ltd) aims to solidify its position in the market, resulting in continued revenue growth. Repeat business from existing clients, along with a steady influx of new customers, will drive the revenue upwards.
(Insurance Broker Ltd) has carefully considered operational costs, employee salaries, and other expenses to project a healthy and sustainable profit margin over the next three years. The company’s focus on cost optimization and efficient resource allocation will contribute to maintaining a favorable profit margin.
(Insurance Broker Ltd) recognizes the importance of strategic investments in technology, marketing, and employee development to achieve its growth objectives. The financial projections include provisions for these essential expenses while ensuring a balanced approach to budget allocation.
Cash flow analysis is a crucial aspect of financial planning. (Insurance Broker Ltd) has projected a positive cash flow throughout the forecast period, reflecting the company’s ability to manage its financial resources efficiently.
To assess the company’s financial health, (Insurance Broker Ltd) will monitor key financial ratios, including: 1. Profitability Ratios: Gross Profit Margin, Net Profit Margin. 2. Liquidity Ratios: Current Ratio, Quick Ratio. 3. Debt Management Ratios: Debt-to-Equity Ratio. 4. Efficiency Ratios: Return on Assets (ROA), Return on Equity (ROE).
The financial forecasts and projections outlined in this section demonstrate (Insurance Broker Ltd)’s potential for growth and profitability over the next three years. By diligently managing expenses, investing strategically, and delivering exceptional service, the company aims to achieve its financial targets and position itself as a leading player in the insurance brokerage industry
Subscribe to our newsletter, autres articles qui pourraient vous intéresser.
In the bustling world we live in, where time is of the essence and quality is paramount, (Dry Cleaning Ltd) emerges as
Welcome to an in-depth exploration of the exciting world of (Bounce House Ltd), where imagination knows no bounds and joyful memories are
In the ever-evolving landscape of the dairy industry, innovation, sustainability, and a strong strategic foundation are paramount for success. Welcome to a
In a world where aesthetics, sustainability, and durability are paramount, the concrete polishing industry has emerged as a game-changer. Welcome to an
In an ever-evolving world where time is of the essence and convenience is paramount, the role of a well-executed business plan cannot
In a world where vehicles are an integral part of daily life, the demand for reliable auto parts and accessories continues to
© Societefacile.com 2023. All rights reserved.
You need a business plan or forecast!
Call on a specialist to help you with this tedious task
Reasonable rates
🔒 insurance broker business plan template: charting your course in the insurance market 📈.
Navigate the Complexities of Insurance Brokerage with Our Tailored Business Plan Template!
Presenting our Insurance Broker Business Plan Template, a strategic tool designed for entrepreneurs and professionals entering or expanding in the insurance brokerage industry. This comprehensive template guides you through establishing and growing a successful insurance brokerage, blending market insights with effective business strategies.
Our template is crafted for maximum adaptability, enabling you to customize each section to the specific requirements of your insurance brokerage. The Excel financial model is designed for efficient financial management, adaptable to changes in the insurance market and business growth.
Embark on your insurance brokerage journey with a detailed and strategic business plan. Our Insurance Broker Business Plan Template is more than just a document; it’s a roadmap to creating a successful and competitive brokerage.
Take the first step towards a thriving insurance brokerage business. Click HERE to access this vital resource and start shaping the future of your insurance services.
CLICK HERE TO BUY NOW!!
___________________________
_________________
All of our business plans come with FREE business plan writing tutorials. Business plan writing tutorials range from customizing your executive summary section to using our proprietary financial model!!
CLICK HERE FOR OUR FREE TUTORIALS!!!
_______________________________________________
For Questions about my template BEFORE PURCHASING or having difficulty downloading it, feel free to call me at:
321-948-9588
Available Monday - Friday from 8 AM to 9 PM EST. (Usually)
IMPORTANT NOTE - I DO NOT OFFER FREE PHONE CONSULTATIONS AFTER PURCHASING THE TEMPLATE.
_____________________________________________________
Empowering insurance brokerage ventures.
Quality Business Plan introduces a comprehensive Insurance Broker business plan template, expertly designed as a customizable Word document and Excel financial model. This tool is essential for entrepreneurs entering the insurance brokerage industry or expanding their operations. It offers a specialized, industry-specific approach to business planning, vital for navigating insurance brokerage's complex and competitive world.
This template provides a detailed framework covering all critical aspects of efficient insurance brokerage. It includes essential sections such as an Executive Summary, Company Description, Industry Analysis, Organizational Structure, and Marketing Strategies. Each segment is specifically tailored to meet insurance brokers' unique challenges and opportunities, ensuring a comprehensive and applicable business plan.
Understanding the intricacies of business planning in the insurance sector, Quality Business Plan offers clear, accessible tutorial support. These guides, available on their website, help users to seamlessly navigate through each part of the template, simplifying the planning process, especially for those new to the industry.
In the insurance brokerage industry, robust marketing strategies are crucial for client acquisition and retention. The template provides detailed plans for digital and traditional marketing efforts, essential for building a solid client base and enhancing brand visibility.
Sound financial management is a cornerstone for success in insurance brokerage. The template includes a structured financial planning section featuring a Funding Request and extensive financial projections like 12-month profit and loss statements and 5-year pro forma income statements, specifically designed for the insurance industry.
In summary, Quality Business Plan's Insurance Broker business plan template is more than just a document; it's a comprehensive guide for success in the insurance brokerage industry. This template equips entrepreneurs with the necessary tools and insights to establish or grow their insurance brokerage, paving the way for a profitable and resilient business in the dynamic insurance field.
If you're an independent insurance agent, you know that success doesn't happen by chance. It requires strategic planning and a clear roadmap for the future. That's where an insurance agency business plan comes into play.
In this guide, we'll explore what a business plan is, why it's essential, and how to create one tailored to your home insurance agency.
At a glance:
Having a solid roadmap is like holding a compass in a dense forest. It not only guides you on how to become a successful insurance agency, but also ensures you stay on course.
So let’s continue that analogy: you’re on a road trip without a map, compass, or GPS. You might eventually reach your destination, but it would be a long and uncertain journey. Similarly, running an insurance agency without a business plan is like traveling without a guide. A well-crafted plan provides a clear path and helps you stay focused on your goals.
Setting realistic and achievable goals is vital for any business. Your insurance agency business plan acts as a compass, allowing you to establish clear objectives. Whether you want to increase your client base, revenue, or expand your services, a business plan helps you chart the course.
If you find yourself in a place to seek external funding, whether from investors or lenders, a comprehensive business plan is a must. It demonstrates that you've thought through your business strategy, increasing your chances of securing financial support.
The insurance industry is never stagnant, and as such adaptability is key. A business plan isn't set in stone; it's a living document that can be adjusted as circumstances change. If done correctly, it allows you to stay flexible and make informed decisions as market trends shift.
Your business plan is the document that transforms your vision into a tangible reality, ensuring your journey as an independent insurance agent is not only successful but prosperous too.
Let’s explore the key components of an effective business plan, including the executive summary, company overview and more.
The executive summary serves as the elevator pitch for your entire business plan. It's designed to capture the reader's attention and give them a quick, compelling overview of your insurance agency. You'll want to concisely highlight your agency's mission, vision, and goals. Think of it as distilling your agency's essence into a few powerful sentences. It's an invitation for the reader to learn more about your agency's journey.
The company overview is your opportunity to introduce your insurance agency in detail. It's where you set the stage for the rest of your business plan. In this section, you’ll want to dive into the history of your agency, including its founding story, location(s), and size. You should also describe every type of insurance product you offer and provide a snapshot of what makes your agency unique.
The industry analysis puts your industry knowledge to good use. It's all about understanding the broader insurance market, including its trends, challenges, and opportunities. In this section, you'll research and present data and insights into the insurance industry. Discuss market trends, regulatory changes, and any challenges that could impact your independent agency. Identifying opportunities within the industry allows you to position your agency effectively to take advantage of them.
Understanding your target market is essential for tailoring your services and marketing efforts effectively. Create detailed buyer personas that encompass their needs, preferences, and pain points. This information is the foundation for developing products and services that resonate with your audience.
Knowing your competition is about gaining insights into their strengths and weaknesses. When performing your market analysis, or market research, be sure to look at factors like their market share, marketing strategy, pricing models, and customer service practices. Understanding how you stack up against the competition will help you develop a winning strategy that sets your agency apart.
Your marketing plan is the strategic playbook for how you'll attract and retain clients. Specify your marketing channels, both online and offline; outline your budget and set measurable goals. Whether it's through digital advertising, content marketing, or print advertising, your marketing plan should maximize your independent insurance agency's reach and impact.
The operations plan is the behind-the-scenes blueprint for how your independent agency runs day-to-day. Detail your team structure, office setup, and technology requirements. It's about ensuring smooth workflow and efficient service delivery. This section gives a clear picture of how your agency operates on a daily basis.
Your management team is the engine that drives your agency. Introduce the key members of your management team and highlight their expertise. Explain how their skills and experiences contribute to the agency's success.
The financial plan is the heart of your business plan. It's where you demonstrate that your agency is not just a vision but a financially viable venture. For any enterprise, including insurance agencies, it’s important to provide detailed financial projections in your business plan, including income statements, balance sheets, and cash flow statements. Set clear financial goals and explain how you intend to achieve them.
Creating an insurance agency business plan is akin to crafting that roadmap we talked about earlier. But here's the twist—this isn't just any road; it's twisting and on an ever-changing landscape. To navigate it successfully, you need more than just directions; you need insider tips and tricks.
Your brand is more than just a logo; it's who you are. Define your brand identity, including your mission statement, core values, and unique selling proposition. A strong brand will set you apart in a crowded market.
If you need capital to start or expand your agency, explore different funding options, which could include personal savings, loans, or investors. Your business plan should outline your funding needs and how you intend to secure the necessary capital.
Ensure that you comply with all regulatory requirements in your area. This includes obtaining the necessary licenses and insurance policies to operate legally. Failing to do so could jeopardize your agency's success.
Your business plan should include specific, measurable, and time-bound goals. Track key performance indicators to measure your progress and adjust your strategy accordingly. Regularly reviewing and updating your plan keeps you on the path to success.
For an independent insurance agency, a well-crafted business plan is not simply a document; it's a dynamic tool that provides strategic direction, fosters adaptability, and instills investor confidence. By defining your brand, understanding your market, and detailing your operational and financial strategies, your insurance agency business plan becomes the compass guiding you through the complexities of the industry.
With clear goals, a solid management team, and a proactive approach to change, your agency can navigate the insurance industry effectively, ensuring not only agency survival but also sustainable growth
A partnership with Openly empowers you to deliver outstanding service with speed and ease while offering comprehensive coverage tailored to your clients' needs.
About the Author
Alyssa Little | Senior Content Strategist
Alyssa is the Senior Content Strategist at Openly, collaborating with industry thought leaders to provide insightful and informative content in the home insurance space. With over 15 years experience in content marketing strategy, copywriting, and editing, Alyssa has refined her expertise through her work at such companies as Gartner, Nike, and Trupanion. Alyssa holds a BA in History from the University of Puget Sound and an MA in Museum Studies from Newcastle University.
May 18, 2023
December 21, 2023
August 31, 2023
Starting an insurance broker business doesn’t have to be a daunting task. By leveraging the #1 Insurance Broker Business Plan Template & Guidebook, you can get your new business off the ground quickly and easily. This comprehensive resource provides step-by-step guidance for developing a comprehensive business plan that will ensure success for your new venture. Read on to learn more about how to craft a winning business plan that will help you take your insurance broker business from concept to reality.
Get worry-free services and support to launch your business starting at $0 plus state fees.
1. describe the purpose of your insurance broker business..
The first step to writing your business plan is to describe the purpose of your insurance broker business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
Here is an example of a purpose mission statement for a insurance broker business:
Our mission is to provide our clients with personalized insurance solutions that meet their individual needs in a knowledgeable, reliable, and friendly manner. We strive to be a trusted partner, delivering the best customer experience each and every time. We are committed to building strong relationships with our customers while helping them protect their assets, families, and future.
The next step is to outline your products and services for your insurance broker business.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
If you don't have a marketing plan for your insurance broker business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
A good marketing plan for your insurance broker business includes the following elements:
Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.
In it, you should list:
The second part of your insurance broker business plan is to develop a management and organization section.
This section will cover all of the following:
This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.
Typically, expenses for your business can be broken into a few basic categories:
Startup Costs
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a insurance broker business varies based on many different variables, but below are a few different types of startup costs for a insurance broker business.
Running & Operating Costs
Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.
Marketing & Sales Expenses
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your insurance broker business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your insurance broker business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Here are some steps you can follow to devise a financial plan for your insurance broker business plan:
Why do you need a business plan for a insurance broker business.
A business plan for an insurance broker business is essential because it offers guidance and serves as a road map for you to follow as you establish and grow your company. A well-constructed plan can provide key information such as the analysis of your target market, an overview of the services you offer, a comprehensive financial plan, a marketing and sales strategy, detailed operations plans, and an overall mission statement. This information will help you visualize your company's goals and objectives, develop strategies to reach those goals, and identify potential risks. Additionally, having a business plan will also be important if you are looking for investments from outside sources. Investors or lenders need to see that you have researched your industry thoroughly and have a viable long-term plan in place.
An insurance broker who specializes in business plan development and/or a professional business consultant can provide the most helpful advice when crafting your insurance broker business plan. Additionally, local small business support resources such as the Small Business Administration (SBA) as well as your local chamber of commerce may also be able to provide advice and support.
Writing a business plan can be a complex process, and it is highly recommended that you seek professional assistance when writing a business plan for your insurance broker business. A professional business plan consultant can help you create an effective plan to achieve your business goals and objectives. They can help you identify financial objectives, analyze market trends, assess competition, develop marketing strategies, and more. Additionally, depending on the complexity of your business model, a professional may be able to offer additional services or advice regarding the legal aspects of running an insurance brokerage business.
We're newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.
From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.
Ebooks & guides
Given the strong competition in the industry, nowadays setting up an insurance brokerage and achieving success is not easy if you do not have a previously planned strategy.
Having a Business Plan will not only help you to have a better vision of the strategy of your brokerage; it will also help you to see clearly who will be in charge of each objective and what we hope to achieve with each one of them.
This will also allow you to check at any time if you are executing the plan as planned, if you are getting closer to the objectives and if there is anything that should be changed. Therefore, we are going to show you how to make a business plan .
The business plan is the document where the brokerage’s objectives are stated, how they are intended to be achieved and the time line in which they are expected to be developed and the goals set are to be reached.
In addition to the objectives, estimated time and who will be in charge of addressing them, other relevant sections are usually included. For this reason, we have decided to list the most common ones.
By way of introduction, it mentions the points to be addressed throughout the document to convey an overview. The most frequent ones are usually:
Here we will talk about the size of the industry, growth rate, customer profile targeted by the brokerage, behavior patterns (if, for example, seasonality is observed), overall sales volume… In addition to mentioning the strengths we have over the competition; speed of response, unbeatable prices, specialists in a certain sector, agreements with certain insurance companies…
The intention is to provide as much information as possible , to give the person who reads it a real vision.
You should list the insurances your company works with and go into detail about the solutions they offer to potential clients. Protection for professionals who need civil liability insurance, coverage in case of theft… It is very important to detail what the added value is. In other words: what makes your brokerage different from the rest .
It is time to talk about how we are going to sell insurance. Distribution channels, collaborators, prices, commissions… In other words, all those ways that will make us have income.
This point details the processes to be developed to achieve the objectives. What technologies will be used, who will be involved in each part, if any kind of material is required, the environment in which we will work, schedules…
Undoubtedly, their number and profitability will determine the success or failure of the brokerage. We must be aware of the profile, behavior, average expenditure… and other characteristics that will allow us to define the buyer persona.
If you are targeting different audiences, you will have to define how to address each one of them, the reason for the segmentation, message tone, product, average expenditure…
Once you are clear about what your potential customers are like, you must indicate the acquisition model . In other words, the actions and tactics to be developed to get them to purchase their insurance through your brokerage.
This is of vital importance since it will not only give you a perspective of the company’s situation; it will give you clues about what works best, strategic corrections that have been made, types of clients with whom you are more successful…
There is no successful project without a team behind it. Reflecting the experience and skills of the team and indicating if there are certain human resources requirements is key.
The business plan should be concluded with financial data. This should reflect the metrics achieved and the forecasts for the coming months and even years. Income and expenses year by year, profit or loss projections, break-even point…
Adapt it to your brokerage.
You’ve heard ad nauseam that no two companies are alike. This applies to any brokerage. The work methodologies, the resources you have, the time you have been in operation… There will be information that you cannot yet provide and you can only speculate, there will be key points in your business that may be important to clarify in the document…
Keep in mind that the person who is going to read it does not always have a high technical level of insurance. Avoiding jargon and complex words will make the document understandable to anyone.
Provide documentation to back up what you say, add links to studies and other official reports so that the reader can get more information and know that the information is 100% accurate.
Using tools such as the SWOT matrix can be very useful to know the strengths and weaknesses, as well as the opportunities and threats faced by the brokerage.
It may seem obvious, but there are still many brokerages that operate without really definitive objectives. This can lead to ineffective actions.
As in the case of objectives, having a well-defined audience will help you to find the right actions. Tone of communications, media to be used…
Any company should frequently review its business plan. As the brokerage progresses, it is common for it to discover errors and areas for improvement that, if not taken note of, may be forgotten.
Discover our solutions for your business
Now that you have a general understanding of the evolution of AI, let’s dive into some of the options available for leveraging this new technology.
There are many different types of AI models, but the most commonly used today for integrating pre-built solutions is a large language model (LLM). This is the technology behind ChatGPT and can be licensed separately from major providers like OpenAI, Microsoft, Google, and others. However, LLMs are just one type of AI model that could benefit your business. Other examples include predictive models, machine learning models, and recommendation systems.
This is the most advanced option and deciding whether this option is viable for your organization requires answering several critical questions, including:
Given the complexity of these considerations, this option is unlikely to be suitable for the masses. Depending on your answers to these questions, implementing an AI model could be a relatively low-effort and cost-effective endeavor – or quite the opposite. The biggest advantage of this approach is the ability to customize a solution specifically for your business and modify it as your needs evolve. However, it involves a complex web of decisions that will require significant dedication and time.
The next option involves using existing software with an AI add-on. In recent months, nearly every software company has introduced an AI feature designed to enhance business operations. These options are advantageous because they can be easily “turned on” and are likely part of software you already use, minimizing the learning curve. When evaluating these add-ons, consider the cost and the ease of implementation. Many of these products offer trial periods that are either free or heavily discounted. And here are a few popular tools with AI add-ons that may help your company:
Given the recent technological advancements, many new software solutions are available, each promising to solve various business challenges like customer service, process optimization, and data-driven insights. However, the field is vast, and many of these companies are startups without a proven track record. To assist you in making informed decisions, here is a list of three popular options that MarshBerry clients have recommended:
The final category involves using mostly free AI chatbots, such as ChatGPT, which can offer quick and easy ways to improve your business operations at a low cost. Here are some of the top chatbots available today:
Strong conversational abilities, widely used for diverse tasks. | Limited to data up until 2021 in some versions, making it less ideal for recent information. | |
Comprehensive AI platform with strong search capabilities. | Access to up-to-date information, excels in understanding current context. | |
Integrated with Microsoft products, optimized for professional use. | Leverages Microsoft’s extensive databases for current data and seamless integration with Office 365. | |
Focuses on research with cited sources and links. | Best for research tasks requiring source verification and transparency. |
AI is a powerful new technology, but it doesn’t have to be intimidating. Implemented correctly, it can drive organic growth, uncover innovative solutions, and help you achieve business goals.
Hear from consulting experts on the latest insurance brokerage industry trends and insights to help you navigate the complexities of advancing your firm at every stage of ownership.
MarshBerry is a global leader in investment banking and consulting services, specializing in the insurance brokerage and wealth management sectors. If your firm seeks expert advisory guidance to refine your business strategies, drive sustainable growth, or facilitate a sale, MarshBerry is the ideal partner to support you in making these critical business decisions. Collaborating with a trusted advisor who deeply understands your business and the industry can help you maximize value at every stage of ownership.
Revenue for the top 100 insurance brokers in the u.s. continues to grow, the evolving talent landscape: how current economic conditions are shaping hiring practices, from client to courtroom: the impact of nuclear verdicts, the importance of the account executive role in organic growth strategies.
Table of contents, what is errors and omissions insurance, who needs errors and omissions insurance, what does errors and omissions insurance cover, real-world examples of errors and omissions claims, e&o vs. general liability insurance: what’s the difference, why e&o insurance is crucial in today’s business landscape, how to choose the right e&o policy, the bottom line.
In today’s fast-paced business world, mistakes happen. But when those mistakes cost your clients money, you could find yourself in hot water. That’s where errors and omissions (E&O) insurance comes in. If you’re a professional offering services or advice, E&O insurance isn’t just a nice-to-have — it’s a must-have. Let’s answer the question, what is errors and omissions insurance , and learn why it matters to you and your business.
Errors and omissions insurance, also known as professional liability insurance, is a type of coverage that protects businesses and individuals who provide professional services or advice. It’s your safety net when a client claims that your work caused them financial harm due to mistakes, oversights, miscommunication, or negligence on your part.
Think of errors and omissions insurance as a professional’s version of malpractice insurance. Just as doctors need protection against medical malpractice claims, professionals in various fields need protection against claims of inadequate work or negligent actions.
If you’re in the business of providing professional services or advice, E&O insurance is for you. This includes, but isn’t limited to:
Essentially, if your job involves giving advice or providing a service that your clients rely on, you should seriously consider E&O insurance.
E&O insurance typically covers:
It’s important to note that E&O insurance typically doesn’t cover intentional or dishonest acts, bodily injury, property damage, or work-related injuries to employees. These are usually covered by other types of insurance policies.
To better understand how E&O insurance works, let’s look at a few scenarios:
In each of these cases, E&O insurance could step in to cover legal fees and any settlements or judgments against you, potentially saving your business from financial ruin.
While both E&O and general liability insurance protect your business, they cover different types of risks:
For example, if a client slips and falls in your office, that’s a general liability claim. But if a client loses money due to your professional advice, that’s an E&O claim.
Many businesses need both types of coverage for comprehensive protection.
In our increasingly litigious society, the importance of E&O insurance cannot be overstated. Here’s why:
Selecting the right E&O policy involves several considerations:
It’s often helpful to work with an insurance broker who specializes in professional liability insurance. They can help you navigate these choices and find a policy that fits your specific needs.
Mistakes can happen to even the most diligent and skilled professionals. Errors and omissions insurance provides a crucial safety net, protecting you and your business from the potentially devastating financial consequences of a lawsuit.
While E&O insurance does come with a cost , it’s a small price to pay compared to the potential expense of a lawsuit. Moreover, the peace of mind it provides is invaluable, allowing you to focus on what you do best — serving your clients.
Remember, it’s not just about protecting your business — it’s about protecting your reputation, your assets, and your future. In today’s complex and litigious business environment, E&O insurance isn’t just a smart choice, it’s an essential part of your professional toolkit.
So, now that we’ve answered “what is errors and omissions insurance” for you, take the time to assess your risks, understand your options, and invest in the right E&O coverage for your business. It could be the most important business decision you make this year.
How to create a risk management plan for consultants.
There’s a relatively common notion that independent consultants spend a lot of their time traveling abroad and doing their work poolside (probably with a pina colada in hand). Sounds like a dream, right? It’s a dream for consultants, too, because it’s far from reality for most. While that may not reflect the real world for […]
If you’re just starting your legal career, you may think that a legal malpractice claim could never happen to you. While that’s hopefully the case, the reality is that the majority of lawyers will face a malpractice claim at some point in their career. According to the American Bar Association (ABA), four out of five […]
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate life insurance products to write unbiased product reviews.
Life insurance is as complicated as the policyholders and beneficiaries who use it. That means there's no single "best" life insurance company. Instead, you can find the best option based on what you want or what you prioritize.
Business Insider's editorial team has independently reviewed over 30 life insurance companies to find the best, based on insurance premiums, policy terms, overall benefits, and customer satisfaction.
While there is no such thing as the objective best life insurance policy, you will be able to find the best insurance policy for your specific needs. Here are our picks for the best life insurance companies, whether you want to use your life insurance policy to build wealth through cash value or you're just looking for a term life insurance policy .
Here are Business Insider's picks for the top life insurance companies.
Northwestern mutual life insurance.
Northwestern Mutual Life Insurance offers a range of products, including term life, whole life, and universal life. It has a 790/1,000 J.D. Power customer satisfaction rating and an A++ AM Best financial strength rating.
Northwestern Mutual's whole life insurance is available for people up to 85 years old. It's available for purchase with several riders, including accelerated care benefits, waiver of premiums, and additional purchase benefits. The whole life insurance policy particularly stands out for the dividends it pays out to whole life insurance policy holders on an annual basis. The company is expected to pay $7.3 billion in 2024.
Read our Northwestern Mutual life insurance review .
Guardian life insurance .
Guardian life insurance has a 743/1,000 J.D. Power customer satisfaction rating and an A++ financial strength rating. It offers term, whole, and universal life insurance. Guardian stands out for its no-exam life insurance, offering up to $3 million in coverage, which is high for the industry. You can also convert Guardian's term life insurance to a whole life insurance plan.
Read our Guardian life insurance review .
State farm life insurance.
State Farm Life Insurance is consistently one of the leading life insurance companies in the industry, receiving the best life insurance ranking in J.D Power's Individual Life Insurance Study, with a score of 843/1,000. The company is also ranked A++ with AM Best for its financial stability with term, universal, and whole life insurance options.
All State Farm policies have to be purchased through a State Farm agent. Your agent can help you bundle and save or buy one policy. State Farm is also among the companies offering "survivorship universal life insurance ," which means the policy covers two people, and it kicks in after the second person dies. Couples looking to maximize their death benefit for beneficiaries with one premium payment each month may enjoy lower overall costs.
State Farm agents can run quotes and compare options to find the right plans for each applicant. The range of options, discounts, and familiar name all contribute to the popularity of State Farm's life insurance.
Read our State Farm life insurance review .
Prudential life insurance.
Prudential Life Insurance is available in all states except New York. New York residents can buy the Pruco Life of New Jersey VUL Protector plan. This plan allows buyers to pull money out of their plan to pay for nursing home expenses. Cash value policy premiums are fixed, so you won't have to worry about extra costs later on. Internal costs are low, which minimizes risk. Due to age, many older adults want a safe investment option for their money. Prudential VUL Protector invests to avoid loss. That also means you're not as likely to see big increases in your available funds outside of what you deposit.
Read our Prudential life insurance review .
Brighthouse financial life insurance.
Brighthouse Financial Life Insurance offers term and indexed universal life insurance options. Its hybrid permanent life insurance policy SmartCare offers, is an indexed universal life insurance that offers long-term care benefits through a collection of riders, including an LTC accelerated death benefit rider.
Brighthouse's other policies are also worth a look. It offers a one-year term life insurance policy that can be converted into a whole life policy. It also offers traditional term life insurance with 10, 20, and 30-year terms and up to $3 million in coverage.
Another benefit of Brighthouse Life Insurance is that most of its policies do not require a medical exam, as long as you get regular checkups. However, for patients over 60 who have not seen a doctor within two years, you may have to take a short physical exam.
Read our Brighthouse life insurance review .
Allianz life insurance.
Allianz Life Insurance plans are geared towards high-income adults looking for more tax-free income. Allianz offers a 40% multiplier bonus with a 1% annual assets charge. In short, the professionals managing your investments take 10%.
Overall, your investments would pull in an extra 14%-1% asset charge. This means you end up with 3% more than what you deposit every year your life policy is active. This plan offers strong returns when using a life policy to supplement your retirement savings. Allianz also offers specialized plans to grow your income by as much as 20% according to some estimates.
Of note: Allianz also offers plans for foreign nationals, including those with H-1B visas.
Read our Allianz life insurance review .
New york life insurance.
New York Life Insurance agents go through extensive training before they ever hit the sales floor. What does this get you? Policies vary widely, and New York Life offers both large and small payouts. Some policies have significant penalties for early withdrawal, but taking a loan offers more options.
Whatever your questions, New York Life agents are trained to offer comprehensive support giving you accurate information about its policies every time. The company comes in at position eight in J.D. Power's latest life insurance customer satisfaction study, with a 794/1,000.
Read our New York life insurance review .
North american company.
North American Company offers term policies alongside accelerated death benefits for critical, chronic, and terminal illnesses and more. The company allows one conversion on a 20-year policy at 15 years or 70 years old (whichever is earlier). The conversion cannot happen later than the five-year marker regardless of which policy you choose or the length. North American Company also offers a term policy with a lower premium renewable up to the age of 95 for qualifying insureds.
While there's many different types of life insurance policies , broadly speaking, there are two types of life insurance: temporary and permanent. Let's go over each in detail.
Temporary life insurance is often called term life insurance. This type of policy covers you for a set amount of time before expiring, usually between 10-30 years. If you pass away after your policy expires, your family won't receive any benefits. Additionally, your policy won't accrue cash value like a permanent policy. That said, some term life insurance policies offer a conversion from term to whole life insurance, so you can extend your coverage.
Because its benefits aren't guaranteed, term life policies are generally cheaper than permanent life insurance. That said, the vast majority of term life insurance policies never pay out. on
Permanent life insurance is an umbrella term for a variety of life insurance policies that will insure you indefinitely and guarantee a payout as long as you maintain your policy. Policy types that fall under permanent life insurance includes:
These policies vary widely in purpose and intended buyers, but all guarantee death benefits to your loved ones. Some permanent life insurance policies, like whole, universal, and variable have a cash value component , which you can use as a savings tool or to leave your heirs a larger death benefit.
Unlike homeowners or auto insurance, which is required by most states, life insurance is a voluntary purchase. As a result, it's not as easy to purchase life insurance online. As a result, finding the best life insurance for your needs starts with finding a trusted insurance agent. Agents can help buyers figure out what they need and when they need it.
However, there's a few things you can consider before approaching an agent:
Some companies will sell you a policy for your child as soon as they're born. While this may seem morbid, early sign-up means lower rates for a policy your child could enjoy in the future. Regardless, early sign-up equates to more policy for lower premiums and a higher likelihood of acceptance. At 20, you may be healthier and be able to pay into the policy for a longer period compared to when you're 50 with more age-related conditions.
As a general rule, never agree to more than you can afford. For the average life insurance agent, their job is to sell you a large policy with a large commission. Consider not only how much you make now, but how likely your current income is to continue. If you work on a project basis and your project is scheduled to end in 12 months, you may want to reconsider a policy premium outside your monthly savings.
How much are you prepared to buy? Some people only want a small policy to cover funerals and other end-of-life expenses. Others build a life policy into their retirement plan. Whatever direction you're going, involving a financial planner could help you make the right decisions. Depending on the carrier, customers can also compare set limits with index universal life policies, which set no limit. These policies never expire, and the value builds over the entirety of your life.
Living Benefits
Life happens unexpectedly. You could be healthy one day and in the hospital the next. Many life policies offer living benefits. These allow you to draw a limited amount out of your policy to cover medical and other bills you cannot pay while sick.
Much like a 401(k), many life insurance policies have penalties for early withdrawal. No matter what policy you want, this question is critical to an informed decision. It's a question of how early you can withdraw and how much you'll lose from the total to have the money in 10 years instead of 30 or after death.
Some policies require insured parties to pay premiums for at least one year before any significant payout would be available. Suicide exclusions are common. Even with no medical exam policies, the company may still do a check for known conditions. An insurance company has to mitigate its risk.
Flexibility
Once you've been denied a life insurance policy, a mark goes on your record. No matter the reasons, other insurance companies may deny you coverage based on the first denial. So consider your whole situation and choose your policy carefully before you submit any applications. Some policies have greater flexibility if you lose your job or otherwise can't make payments. Others will lapse if you miss even one payment.
Payment Type
The best of life insurance for you will depend on how you want to pay for it. Universal policies have flexible premiums and adjustable death benefits, which may be appealing if you're worried about periods of financial hardship.
Even within whole life or term life insurance policies, customers have the option to choose guaranteed fixed or variable rates. Some have guaranteed payouts, but you'll need to ask your agent for details.
What is your intended use? Why are you shopping for a life insurance policy in the first place, and what are your goals? Many successful financial planners also have a background in life insurance. So while they may not be able to find you a specific life insurance policy, financial planners can help you set out a blueprint for your purchase.
In life insurance, it's easy to get "sold a bill of goods." Many life insurance agents pass a state test to be thrown into the deep end. Agents sell the company product, but not all know the products. In this vein, we look at the products each company offers. We also look at agent training.
A good life insurance agent may not volunteer all facts upfront. But a company's agents should answer questions about its products accurately and in a way the average consumer can digest. Agents should be able to inform you about the long-term benefits and limitations. This will help customers find the right policy for their long-term plan.
We consider affordability, policy sizes available, and performance for a comprehensive assessment. If you can, we recommend also working with a financial advisor to make a plan for your future with life insurance.
Read more about how Business Insider rates life insurance .
To inform our choices for the best life insurance companies, we spoke with the following experts:
Paul LaPiana, Head of Product at MassMutual
"There are different approaches to determining how much life insurance you need. One is the 'human life' approach, which estimates the current value of your future earning potential. Another is securing specific coverage to pay off debts such as a mortgage or provide for the education of children. A comprehensive protection plan should provide the right amount of coverage over the course of your working life and into retirement."
Barbara A. Pietrangelo, Chair of Life Happens
"There is no one-size-fits-all life insurance policy because everyone is different. One way to get a rough estimate is to multiply your income by 10 to 15; another is adding $100,00 to that amount, should you have a child and anticipate college education expenses.
Your best bet is to talk to a financial professional or use the Life Insurance Needs Calculator on LifeHappens.org to analyze what's right for you."
Wykeeta Peel, Corporate Vice President & Market Manager African American Market Unit at New York Life
"As you consider what policy best meets your needs, it can help to answer four key questions: First, how much death benefit do you need? Second, how long will you need that coverage? Third, what is your budget (or how much monthly premium can you afford to pay?), and finally, what is your investment risk tolerance?
To determine how much death benefit makes sense, it's helpful to think beyond using life insurance to cover funeral expenses and consider whether anyone is relying on the policy owner's income to maintain a lifestyle, pay rent or a mortgage, or fund a child's education and for how long.
There are various rules of thumb regarding the right amount of Life insurance coverage. Some tips can be found online, but they only provide an estimate and don't necessarily factor in an individual's specific needs. In my opinion, human guidance, powered by technology, is required. Basically, it comes down to how much money your loved ones would need to remain on firm financial ground if your earnings were no longer in the picture and that is different for everyone."
"Increased accessibility through digital and other channels as well as through underwriting enhancements. Increased tailoring of products and features. And an increased emphasis on health and wellness programs."
"Having enough qualified insurance professionals to walk potential buyers through the multiple benefits of life insurance will be pivotal to the growth of the industry. Education is a key factor here, as professional agents also need to be able to explain life insurance and its benefits in an easy, digestible way, especially when there are so many misconceptions about life insurance."
"The need for life insurance is greater than ever. In fact, a recent New York Life Wealth Watch survey found that 37% of adults have been thinking about life insurance more often these days – and half of adults report that financial products that provide protection (50%) and reliability (50%) are more important now compared to last year. This may be especially true for middle-market and Cultural Market families.
Our organizational structure of having Cultural Market agents embedded in the communities where we live and work allows us to understand the needs of diverse communities and develop solutions that resonate with them."
"It is difficult to say with any certainty how healthy you will be years from now. That's why securing life insurance, and insuring your insurability, today, when you are the youngest you'll ever be again, and perhaps your healthiest is a wise decision."
"Do you love someone? If the answer is yes, then life insurance is certainly something you should consider. Many buy gifts and experiences to express their love, but haven't considered that life insurance is just another way to say I love you. Nothing says support like ensuring your family's financial security and peace of mind."
"If you have someone depending on your income, you should consider purchasing life insurance. A death benefit from a life insurance policy can replace income from the loss of a breadwinner, ensure a family can stay in their home, fund educational or retirement expenses, address debt and so much more.
A life insurance policy can also help you grow your family's wealth over time. Once the risk of an unexpected loss has been managed, you can begin to think more broadly about your family's financial future. Life insurance can enable your mindset to shift from death to growth."
"With life insurance, you are securing a future commitment that may be decades away. Research the company behind the policy to ensure it has high financial strength ratings, longevity, and an excellent track record of paying claims."
"When looking for an insurance agent or company, be sure to do your research. When comparing companies, be sure to remember that the policy features that fit you and your loved ones best is the most important factor. Don't automatically assume you should buy from the higher-rated company.
If the policy from the other company has more of what you're looking for, it might be the better choice. If you're unsure where to start, try the Life Happens Agent Locator to find an insurance professional in your area."
A whole life insurance policy has a schedule of payments to earn the total death benefit. Past a certain waiting period, you'll get the full payout if something happens. However, you can also pay it off entirely if you live longer or make larger payments early. In either of these situations, you are no longer required to make further payments to keep the policy active.
There isn't one best life insurance company, because the best option for you will depend on the type of policy you're looking for. It's best to work with a qualified insurance agent to help you find the best coverage. If you're deciding between multiple similar options, it's also worth consulting J.D. Power's life insurance customer satisfaction study . The latest study ranks State Farm as the top pick for individual life insurance, outpacing Nationwide by three points.
Each situation is different and requires a knowledgeable life insurance agent to assess your best options. Bring all your questions and the coverage you're looking for to an insurance agent near you to explore your options.
No, medical exams aren't necessarily required for life insurance. Some life insurance policies are advertised as "no medical exam." This doesn't mean the insurer won't ask you about known conditions or look at medical records. You can find our guide on the best no exam life insurance here.
The most popular type of life insurance is term life insurance. Term policies are only good for a specified term that you select when opening the policy — the fact that they don't last forever also makes these policies the most affordable. That said, a very slim minority of term life insurance ever pays out.
To continue, please click the box below to let us know you're not a robot.
Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .
For inquiries related to this message please contact our support team and provide the reference ID below.
IMAGES
VIDEO
COMMENTS
Learn how to draft a comprehensive business plan for your insurance brokerage firm with this free example. It covers market analysis, product and service offerings, operational plan, marketing and sales strategy, and financial framework.
This web page does not provide a sample of insurance building, but a guide to create a business plan for an insurance agency. It covers the benefits, sections, and presentation of a business plan, but not the physical structure of a building.
Learn how to write a business plan for your insurance brokerage firm with a professional template and guide. Find out the market opportunity, project presentation, market research, strategy and finances for your insurance brokerage business.
Sample from Growthink's Ultimate Insurance Business Plan Template: Last year, according to IBISworld.com, US insurance brokerage and agencies brought in revenues of $117 billion and employed 965,000 people. There were 381,116 businesses in this market, for an average of $308,000 per business.
Learn the basics of insurance brokerage, the steps to launch a brokerage business, and the challenges and opportunities in the industry. Find out the startup capital, expertise, licenses, and ...
Learn how to create a business plan for your insurance agency with this step-by-step guide. Download a free template and get tips on market research, funding, and strategy.
Learn why, what, and how to create a business plan for an insurance broker with this comprehensive guide. Find out the essential information, tools, and tips to craft a roadmap for your insurance broker's success.
Learn how to write a comprehensive business plan for your insurance agency, including market analysis, product offerings, marketing strategy, and financial projections. Download a free sample plan and get tips on choosing the right type of agency and analyzing the competition.
Learn the steps to create a comprehensive business plan for your new insurance agency, including market analysis, financial projections, and funding sources. Find out the differences between captive and independent agents, and get tips on how to attract and retain clients.
Starting your insurance broker business plan is a crucial step towards setting a solid foundation for your venture. Follow these steps to effectively utilize the Insurance Broker Business Plan Template. 1. Define your business objectives. Begin by clearly outlining your business objectives and goals. Consider factors like the types of insurance ...
Download a customizable insurance business plan template and sample to start or grow your agency. Learn about the types, revenue, expenses and funding sources of insurance companies.
Learn how to start your own insurance company with this sample business plan. It includes an executive summary, mission, objectives, market analysis, products, marketing, and financial projections.
Expand Market Presence: (Insurance Broker Ltd) aims to establish a strong presence in the local and regional insurance market. 2. Diversify Product Portfolio: We plan to enhance our product range to cater to diverse customer needs. 3. Strengthen Client Relationships: Building lasting relationships with our clients is a priority.
Quality Business Plan introduces a comprehensive Insurance Broker business plan template, expertly designed as a customizable Word document and Excel financial model. This tool is essential for entrepreneurs entering the insurance brokerage industry or expanding their operations. It offers a specialized, industry-specific approach to business ...
Learn how to craft an effective insurance agency business plan that defines your brand, goals, and strategy. Find out the key components of a business plan, such as executive summary, industry analysis, marketing plan, and financial plan.
Learn the steps to start an insurance brokerage firm, from understanding the business model and market research to writing a business plan and financing the launch. Find out what skills, experience, and legal requirements you need to succeed in this industry.
Learn how to write a comprehensive business plan for your insurance broker business with this guide. It covers purpose, products, marketing, operations, management, and finances.
Learn how to write a business plan for an insurance agency with this sample plan created by Upmetrics. Find out the industry overview, legal structure, branding, funding, and financial considerations for your insurance agent business.
Download a sample business plan for an insurance agency, including mission, objectives, financials, and marketing strategy. Learn how to use Upmetrics software to create your own plan with automated forecasts and guidance.
This web page does not contain the answer to the query about when Ohannes joined an insurance brokerage firm and how the company used onboarding to help him. It is a guide on creating a strategic plan for insurance brokers by MarshBerry, a firm that offers investment banking services.
The business plan is the document where the brokerage's objectives are stated, how they are intended to be achieved and the time line in which they are expected to be developed and the goals set are to be reached. In addition to the objectives, estimated time and who will be in charge of addressing them, other relevant sections are usually ...
1.0 Executive Summary. The purpose of this business plan is to plan the business operations of an Insurance Agency owned and operated by Mr. John Doe. The agency or ("the Company") is a business devoted to promoting and selling the financial products and insurance polices offered by The Insurance Agency (fictitious name for sample purposes.)
Broker Business Plan Template - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online for free. This business plan covers the period ending June 30th 2015. The key focus areas are ensuring ongoing compliance with regulatory requirements, improving credit control processes in the current economic environment, maintaining relationships with insurers, increasing staff ...
The 2024 Top 100 Insurance Brokers in the U.S. list continues to be top heavy from intense consolidation and continued P&C rate hardening - producing double-digit organic growth. The top 50 brokers represent 96% of all the revenue on the list, while the average annual growth rate of all firms was 15.0%.
Complex business environment: As business operations become more complex, the risk of errors increases. Contractual requirements: Many clients now require proof of E&O insurance before they'll work with you. Peace of mind: With E&O insurance, you can focus on your work without constantly worrying about potential lawsuits.
Compare the top life insurance companies based on ratings, products, and benefits. Find the best option for your needs, whether you want term, whole, universal, or no-exam life insurance.
A small Chinese brokerage has emerged as an unlikely winner from the merger plan of industry leaders Guotai Junan Securities Co. and Haitong Securities Co., thanks to its name. Sealand Securities ...