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How to write an insurance business plan

how to write an insurance business plan

Things You'll Need

Collect Data

Create your basic outline. Before you begin to create the business plan to sell insurance, you need to decide what sort of insurance you're going to sell and how. There are various methods of marketing each product type. For instance, if you market life insurance, you might sell it to business owners for buy/sell agreements or corporations as an executive bonus. You also might decide that the market for newly married couples is your niche, and focus strictly on insurance for individuals. If you market health insurance, there are ample opportunities to write group plans, or you might focus on the small-business owner with no employees. This is part of your mission statement.

Describe your experience and the experience of all that are in your company. Include important information such as each individual's education and training, years in the industry and premium production. List important factors such as appointments to calls and closings to appointments. You'll need this to demonstrate that your proposal is viable.

Find the number of potential clients in your area. If you intend to work in the area of individual life insurance, property and casualty insurance or health insurance, find the number of people within driving distance that fit your parameters. Often your municipal Chamber of Commerce has a breakdown of people by age group and average income. The same information is necessary for those working in the business market.

Average out the premium for the product you wish to sell. Add all the premiums you sold the year before and divide it by the number of cases you sold. That's the average premium per policy. Next, find the average commission for that type of product if you sell for more than one company.

Decide how you're going to reach the people. You might be the best salesman in the country but if you don't have anyone in front of you, you won't make a sale. Lay out the method of reaching prospects. You might have several methods, such as seminars, letters or referrals. This is the most important part of the plan because it details how you are going to make things happen.

Track or estimate your expenses on an annual basis. Don't forget office expenses and travel expenses if you make calls. If you need to purchase equipment for your sales, such as a computer, it also needs to be included. You also need a personal financial statement.

Put It Together

Write your plan. The first page should show the name of your company followed by the words "Business Plan." Your name and contact information should be in the lower

left. The second page is normally your table of contents. Included in that are page numbers for the executive summary, general company description, products and services, marketing plan, operational plan, management and organization, personal financial statement, start-up expenses and your capitalization, financial plan. Additional information, such as population charts, should be contained in appendices.

Write your executive summary. This is the sales pitch you'd use if you sold yourself to an employer. It includes the programs you'll sell and your target clients. Include your previous production here and average premium. Include what you believe is your future in the business and the future of the type of product you sell. The next section is a description of the company, if you're starting one. A mission statement, company or personal goals and business philosophy go here.

Describe the products and services on the products and services page. You'll include use of the insurance product, average premium and commission. Tell why you are better than competitors to market this type of insurance. Describe your competitors from your prospective

Lay out your marketing plan. This is specifics on how you are going to achieve your goal. Use industry data and your own personal data if you have been in the business for a while. Tell about your market, its size, demands, trends and growth potential. List the obstacles and how you intend to overcome them. Show how your customers view your product and its usefulness to them. Include a description of your customers here, also and your competition. If you have a niche market, identify it here. Rate yourself in various areas to successful competitors. Also, describe how you'll reach the clients and your daily work plan.

Put information on the environment page such as a description of the company's whose policies you sell, the products you sell, the legal environment regarding insurance, attitude of the public, your location if you have a storefront and your employees if any.

Organize your personal financial statement for the next page. The page following this is the cost you'll face. If this is a start-up agency, forecast start-up cost for your agency. Include contingencies if you run into a big financial need. This page allows you to compare your needs to your income.

Lay out your financial plan on the next page. Include both a 12-month projection and a 4-year plan. The last section, appendices, includes things such as market research, advertising material and brochures, lists of business assets you own and those needed and all material that supports your plan. When you're done with this page, put it in a binder for a better presentation or more durable copy.

Category: Insurance

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