Insurance Business Plan (Life, Health & Casualty)

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Small Business Plan: Insurance Agency

Executive Summary

This insurance business plan describes a sample strategy for launching an independent life, heath, and property/casualty insurance agency business. The agency will be an independent personal insurance brokerage serving the city with insurance advice and a wide selection of both property & casualty and life and health products.

Insurance agency business
The agent's independence is a competitive advantage in starting a new agency

The agency will remain fiercely independent. A foundation of this business plan is that the agency must be able to provide customers the best insurance products and values available.

Kolem Plynthe, a newly licensed insurance agent, will launch the new insurance business.  He will maintain a home-based business initially to keep costs down.  As premiums grow, he plans to move the insurance business to an office where he can collaborate with his associate agents. Plynthe's history as a successful salesperson indicates he will be successful in the insurance business.

The new agency should rapidly generate enough premiums to produce a salary and profit for its founder.  By working from a home office, the founder will be able to launch the new insurance agency without the need for investors or loans.  After the first year, the agency founder will take out a long-term loan to finance expansion.  His expansion plans include hiring an associate and opening an office where he can meet with clients and his business associates.

Agency Business Plan Forecast: Sales, Gross Margin and Net Profit


Agency Strategic Goals

The agency will carry all lines. These lines will include:
  • Property and casualty insurance, including private passenger auto insurance, homeowner's insurance, and other property and casualty insurance products
  • Life insurance and annuities, along with health insurance

During the first year of operation, the founder will develop a detailed property & casualty business plan and a group health insurance business plan.  The recurring revenues from these lines in particular will ensure the stability of premiums as the agency grows.

Business Plan Objectives

The new insurance business will judge its success on meeting the following objectives:

  1. Build revenues quickly
  2. Rent an office and add an associate insurance agent in the second year
  3. Revenues double from the 2d to 3d year with a reasonable net profit.

To achieve its objectives, the insurance agency will follow these principles:

  1. Remain an independent agency business
  2. Think of each client's needs holistically to consider all the potential risks in their lives
  3. Maintain a reputation of care, fairness, empathy, and expertise

View Rest of This Insurance Business Plan, including Cash Flow, Profit & Loss, Marketing Plan and Strategy Details

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