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Here is a free business plan sample for an insurance brokerage firm.

Embarking on the journey to become an insurance broker can be both exciting and daunting. Knowing where to start is crucial.

In the content that follows, we will present to you a comprehensive sample business plan tailored for an insurance brokerage.

As an aspiring entrepreneur in the insurance industry, it's essential to understand that a meticulously formulated business plan is a cornerstone of any successful venture. It serves as a roadmap, guiding you through setting clear objectives, developing strategies, and outlining the steps you need to take to achieve your business goals.

To streamline your planning process and ensure you're on the right track, feel free to utilize our insurance broker business plan template. Our team of professionals is also available to review and refine your plan at no extra cost.

How to draft a great business plan for your insurance brokerage firm?

A good business plan for an insurance broker must reflect the unique aspects of the insurance industry.

To start, it is crucial to provide a comprehensive overview of the insurance market. This includes current statistics and identifying emerging trends in the industry, as illustrated in our insurance broker business plan template .

Then, you should articulate your business concept effectively. This encompasses your vision, pinpointing your target market (for instance, individuals, small businesses, corporate clients), and the distinctive positioning of your insurance brokerage (specialized coverage, customer service excellence, technology integration, etc.).

The subsequent section should delve into market analysis. This requires a thorough understanding of the competitive landscape, industry trends, and client needs and expectations.

For an insurance broker, it is imperative to outline the range of insurance products and services you plan to offer. Describe your offerings - life, health, property, casualty, liability insurance, etc. - and explain how they align with the demands and preferences of your target clientele.

The operational plan is equally important. It should detail the location of your brokerage, the structure of your client service and back-office teams, partnerships with insurance providers, and the client acquisition and retention process.

For an insurance broker, it is essential to emphasize your expertise in risk assessment, knowledge of insurance products, and commitment to ethical standards and client confidentiality.

Next, address your marketing and sales strategy. How will you engage and maintain a client base? Consider promotional tactics, client loyalty programs, and cross-selling opportunities (for example, bundling different types of insurance).

Adopting digital strategies, such as a professional website or an active social media presence, is also vital in the modern marketplace.

The financial framework is another critical component. This includes the initial capital requirement, revenue projections, operational expenses, and the point of profitability.

In the insurance brokerage field, understanding commission structures and managing cash flow is crucial, so meticulous planning and financial acumen are necessary. For this, you can refer to our financial forecast for an insurance broker .

Compared to other business plans, an insurance broker's plan must pay special attention to regulatory compliance, licensing requirements, and the importance of building trust with clients.

A well-crafted business plan will assist the broker not only in refining their strategy and approach but also in attracting investors or obtaining financing.

Lenders and investors seek robust market analysis, realistic financial projections, and a clear grasp of the day-to-day operations of an insurance brokerage.

By presenting a thorough and substantiated plan, you showcase your professionalism and dedication to the success of your brokerage.

To achieve these goals while saving time, simply fill out our insurance broker business plan template .

A free example of business plan for an insurance brokerage firm

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for an insurance broker .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The insurance industry is a vital component of the global financial services sector.

Recent estimates value the global insurance market at over 5 trillion dollars, with projections indicating continued growth, driven by an increasing population, economic development, and the diversification of insurance products.

In the United States alone, there are over 6,000 insurance brokerage firms, contributing to an annual revenue of approximately 120 billion dollars for the insurance brokerage and agency sector.

These statistics underscore the critical role insurance brokers play in the economy, providing risk management solutions and peace of mind for individuals and businesses alike.

The insurance industry is experiencing significant trends and innovations that are reshaping the way brokers operate.

Technological advancements, such as artificial intelligence and big data analytics, are transforming the underwriting process and enabling more personalized insurance products.

Insurtech startups are introducing disruptive models, including on-demand insurance and peer-to-peer platforms, catering to the modern consumer's desire for flexibility and convenience.

There is also a growing emphasis on cyber insurance, as businesses become increasingly aware of the risks associated with digital operations.

Moreover, the industry is seeing a shift towards sustainable and socially responsible insurance practices, with products designed to support green initiatives and ethical investments.

Consumer demand for transparency and ease of access is leading to the rise of online insurance marketplaces and mobile applications, simplifying the process of comparing and purchasing insurance policies.

These trends highlight the dynamic nature of the insurance industry and the need for brokers to stay informed and adaptable to meet the evolving needs of their clients.

Success Factors

Several key factors contribute to the success of an insurance broker.

Expertise and knowledge of the insurance market are paramount. A broker who can navigate the complex landscape and offer tailored advice is invaluable to clients.

Building strong relationships with clients through trust and transparency is essential for long-term success and referrals.

Having a strategic online presence, including a user-friendly website and active social media engagement, can significantly enhance visibility and accessibility.

Efficient and responsive customer service is crucial for client satisfaction and retention.

Lastly, the ability to innovate and offer new insurance solutions that align with current trends, such as cyber insurance or eco-friendly policies, can set a broker apart in a competitive market.

The Project

Project presentation.

Our insurance brokerage project is designed to address the complex and evolving insurance needs of individuals and businesses. Strategically located in a business district with a high concentration of both residential and commercial entities, our brokerage will offer a comprehensive range of insurance products, including health, life, property, and liability insurance, all tailored to the unique requirements of our clients.

We will focus on providing personalized risk assessment, policy comparison, and expert advice to ensure our clients receive the best coverage at competitive rates.

Our insurance brokerage aspires to become a trusted advisor and partner, empowering clients to make informed decisions about their insurance needs and financial security.

Value Proposition

The value proposition of our insurance brokerage project is centered on delivering expert, unbiased advice and customized insurance solutions that protect our clients' assets and provide peace of mind.

Our commitment to integrity, transparency, and client education sets us apart, offering a seamless and supportive insurance buying experience. We aim to simplify the complex world of insurance for our clients, ensuring they have the right coverage for their specific circumstances.

We are dedicated to building long-term relationships with our clients, providing ongoing support and assistance as their insurance needs evolve over time.

Our brokerage seeks to be a cornerstone in the community, offering not just insurance policies, but a commitment to the safety and well-being of our clients and their families.

Project Owner

The project owner is an experienced insurance professional with a deep understanding of the industry's challenges and opportunities.

With a background in risk management and a strong track record in client relations, he is determined to establish an insurance brokerage that stands out for its client-centric approach and dedication to excellence.

With a vision of providing peace of mind and financial security, he is committed to offering tailored insurance solutions while contributing to the stability and prosperity of the local community.

His expertise and passion for helping others navigate the complexities of insurance make him the driving force behind this project, aiming to become a reliable and knowledgeable ally for those seeking to protect what matters most.

The Market Study

Market segments.

The market segments for this insurance brokerage are divided into several categories.

First, there are individuals seeking personal insurance solutions, such as life, health, auto, and home insurance, who require tailored policies to protect their assets and well-being.

Next, there are small to medium-sized businesses in need of commercial insurance to safeguard their operations, including liability, property, and workers' compensation coverage.

The market also includes niche segments such as professionals requiring specialized insurance products like malpractice or errors and omissions insurance.

Finally, financial advisors and wealth managers can be a key segment by referring clients who need comprehensive insurance strategies as part of their financial planning.

SWOT Analysis

A SWOT analysis of this insurance brokerage project reveals several aspects.

Strengths include a strong network of insurance providers, expertise in risk assessment and policy customization, and a commitment to client education and service excellence.

Weaknesses could include the challenge of building brand recognition in a market with established competitors and the need to stay current with ever-changing insurance regulations.

Opportunities lie in leveraging technology to improve customer service and policy management, as well as in expanding the client base through strategic partnerships and referral programs.

Finally, threats could include economic downturns affecting clients' ability to purchase insurance and the potential for new entrants or disruptive technologies to alter the competitive landscape.

Competitor Analysis

Competitor analysis in the insurance brokerage sector reveals a mix of local, regional, and national firms.

Among direct competitors are other independent brokers, large insurance agencies, and direct-to-consumer insurance companies.

These players compete on factors such as price, range of products, customer service, and technological capabilities.

Potential competitive advantages include personalized client relationships, expertise in niche insurance markets, and a strong local presence.

A thorough understanding of competitors' strengths and weaknesses is essential for developing effective differentiation and client acquisition strategies.

Competitive Advantages

Our insurance brokerage distinguishes itself through a client-centric approach, ensuring that each policy is carefully tailored to the individual's or business's unique needs.

We offer a comprehensive suite of insurance products from a variety of reputable providers, giving our clients the flexibility to choose the best coverage options.

Furthermore, our commitment to client education empowers individuals and businesses to make informed decisions about their insurance needs.

We take pride in our responsive customer service and our ability to build long-term relationships with our clients, which fosters loyalty and trust in our brand.

You can also read our articles about: - the customer segments of an insurance brokerage firm - the competition study for an insurance brokerage firm

The Strategy

Development plan.

Our three-year development plan for the insurance brokerage is designed to establish a strong foothold in the market.

In the first year, we will concentrate on building a solid client base by offering personalized insurance solutions and exceptional customer service.

The second year will be focused on expanding our services to include online consultations and digital policy management to cater to the tech-savvy consumer.

In the third year, we plan to diversify our insurance offerings and forge strategic alliances with financial advisors and real estate firms to broaden our service portfolio.

Throughout this period, we will remain dedicated to ethical practices, customer education, and adapting to the evolving insurance landscape to ensure we meet our clients' needs and remain competitive.

Business Model Canvas

The Business Model Canvas for our insurance brokerage targets individuals and businesses looking for comprehensive and tailored insurance coverage.

Our value proposition is centered on providing expert advice, competitive pricing, and a wide range of insurance products to suit diverse needs.

We will engage with clients through multiple channels, including our office, online platforms, and community events, utilizing key resources such as our knowledgeable team and industry partnerships.

Key activities include client consultations, risk assessment, and policy customization.

Our revenue streams will be derived from commissions on insurance policies sold and consultation fees, while our costs will be primarily associated with staff, marketing, and operational expenses.

Access a detailed and editable version of our Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is built on trust and expertise.

We aim to educate our target market on the importance of adequate insurance coverage and the benefits of working with a broker. Our approach includes educational workshops, informative content on our website, and personalized insurance reviews.

We will also establish referral programs with local businesses and foster relationships with clients to encourage word-of-mouth recommendations.

Additionally, we will leverage social media and targeted online advertising to increase our visibility and attract a broader clientele while emphasizing our commitment to providing tailored insurance solutions.

Risk Policy

The risk policy for our insurance brokerage is to minimize operational and financial risks while ensuring compliance with industry regulations.

We will implement rigorous data protection measures to safeguard client information and maintain a strict code of ethics to prevent conflicts of interest.

Regular training for our team will ensure that they are up-to-date with the latest insurance products and regulations. We will also maintain a conservative financial strategy to ensure business stability.

Furthermore, we will carry professional indemnity insurance to protect against any legal claims arising from our advisory services. Our priority is to provide secure and reliable insurance brokerage services to our clients.

Why Our Project is Viable

We are committed to establishing an insurance brokerage that prioritizes the unique needs of each client.

With our focus on customer service, adaptability, and a comprehensive understanding of the insurance market, we are confident in our ability to thrive in this competitive industry.

We are enthusiastic about empowering our clients to make informed insurance decisions and look forward to growing a successful and respected brokerage.

We are prepared to make the necessary adjustments to navigate market challenges and are optimistic about the future of our insurance brokerage.

You can also read our articles about: - the Business Model Canvas of an insurance brokerage firm - the marketing strategy for an insurance brokerage firm

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for an insurance broker and our financial plan for an insurance broker .

Initial expenses for our insurance brokerage include securing a professional office space, obtaining the necessary licenses and permits, investing in industry-specific software and technology, purchasing liability insurance, and developing a strong brand identity. Additionally, costs will be allocated for initial marketing efforts to establish our presence in the market and attract clients.

Our revenue assumptions are based on a comprehensive analysis of the local market's demand for insurance products and services, taking into account factors such as demographic trends, economic conditions, and the competitive landscape.

We anticipate a steady growth in client acquisition, starting conservatively and expanding as our reputation for providing tailored insurance solutions and exceptional customer service becomes more widely recognized.

The projected income statement outlines expected revenues from commissions and fees for insurance policies sold, consultation services, and operating expenses (office rent, marketing, salaries, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability and profitability of our insurance brokerage.

The projected balance sheet will display assets unique to our business, such as office equipment, software, and potential accounts receivable, against liabilities including any startup loans and operational expenses.

It will provide a snapshot of the financial standing of our insurance brokerage at the conclusion of each fiscal period.

Our projected cash flow statement will detail the inflows from client payments and outflows for business expenses, enabling us to predict our financial requirements. This is crucial for maintaining a healthy cash balance and ensuring smooth operations.

The projected financing plan will identify the specific sources of funding we intend to utilize to cover our initial costs, such as personal investment, business loans, or lines of credit.

The working capital requirement for our insurance brokerage will be diligently managed to guarantee we have sufficient funds to support our day-to-day activities, including office expenses, marketing initiatives, and employee compensation.

The break-even analysis will determine the volume of business we need to transact to cover all our costs, including startup investments, and begin generating profits.

It will signal the point at which our brokerage becomes financially sustainable.

Key performance indicators we will monitor include the client retention rate, the average revenue per client, the expense ratio to evaluate operational efficiency, and the return on equity to measure the profitability of the capital invested in our business.

These metrics will assist us in gauging the financial health and overall success of our insurance brokerage.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for an insurance brokerage firm .

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Insurance Broker Business Plan Template

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Starting an insurance brokerage business can be a daunting task, but having a solid plan in place can make all the difference. Enter ClickUp's Insurance Broker Business Plan Template! This template is your go-to resource for mapping out your strategy, marketing approach, financial forecasts, and operational protocols to set the stage for a thriving insurance brokerage business. With ClickUp's template, you'll be able to:

• Define a clear roadmap for attracting clients and establishing partnerships with insurance providers
• Outline your financial projections for a profitable future
• Establish operational protocols for seamless business operations

Ready to launch your insurance brokerage business to new heights? Get started with ClickUp's comprehensive template today!

Insurance Broker Business Plan Template Benefits

Main elements of insurance broker business plan template.

To effectively plan your insurance brokerage business, utilize ClickUp's Insurance Broker Business Plan Template featuring:

• Custom Statuses: Track progress with statuses like Complete, In Progress, Needs Revision, and To Do for each section of your business plan
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to input specific details and monitor key aspects of your business plan
• Custom Views: Access different perspectives like Topics List View, Status Board View, Timeline Gantt Chart View, Business Plan Table View, and Getting Started Guide to streamline planning and execution
• Strategic Planning: Enhance decision-making with tools like Goals, Gantt charts, and Dashboards to align objectives, visualize timelines, and monitor progress towards business milestones.

How To Use Insurance Broker Business Plan Template

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 you plan to offer, target market demographics, revenue targets, and growth projections. Having a well-defined business plan will serve as a roadmap for your insurance brokerage.

Utilize Goals in ClickUp to set specific, measurable, achievable, relevant, and time-bound objectives for your insurance brokerage.

2. Analyze the market and competition

Conduct thorough market research to understand the competitive landscape and identify opportunities within the insurance industry. Analyze market trends, customer needs, and the strategies of your competitors to position your brokerage effectively.

Use Table view in ClickUp to organize and analyze market research data, competitor information, and key industry insights.

3. Develop your marketing and sales strategy

Create a comprehensive marketing and sales strategy to attract clients and drive business growth. Outline how you plan to reach your target audience, generate leads, and convert prospects into customers. Consider digital marketing, networking events, and partnerships with insurance carriers.

Employ Automations in ClickUp to streamline your marketing processes, automate lead generation tasks, and track the effectiveness of your marketing campaigns.

4. Financial planning and projections

Devote time to creating detailed financial projections for your insurance brokerage. Estimate your startup costs, operational expenses, revenue streams, and potential profits. Develop a realistic financial forecast that will guide your business decisions and help secure funding if needed.

Utilize Dashboards in ClickUp to monitor key financial metrics, track revenue goals, and visualize your financial projections in real-time.

By following these steps and using the Insurance Broker Business Plan Template in ClickUp, you can lay a strong foundation for your insurance brokerage and increase the likelihood of success in a competitive industry.

Get Started with ClickUp’s Insurance Broker Business Plan Template

Insurance brokers and agencies can leverage the Insurance Broker Business Plan Template in ClickUp to streamline their strategy and operations, ensuring a successful and profitable insurance brokerage business.

To begin, click on "Add Template" to incorporate the Insurance Broker Business Plan Template into your ClickUp Workspace. Specify the Space or location where you want to apply this template.

Next, invite relevant team members or partners to your Workspace to kickstart collaboration.

Here's how you can maximize the potential of this template:

• Utilize the Topics view to categorize different aspects of your business plan such as strategy, marketing, and finance
• Track progress using the Status view to monitor tasks under Complete, In Progress, Needs Revision, and To Do categories
• Create a detailed timeline in the Timeline view to set deadlines and milestones for key initiatives
• Dive into the specifics of your business plan using the Business Plan view to outline strategies, projections, and protocols
• Refer to the Getting Started Guide view for a comprehensive overview and step-by-step instructions on using the template effectively
• Incorporate custom fields like Reference, Approved, and Section to add specific details and approvals to your business plan
• Update task statuses as you progress through the plan to keep stakeholders informed
• Monitor and analyze tasks to ensure the successful implementation of your business plan.

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Insurance Agency Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 3,000 entrepreneurs and business owners create business plans to start and grow their insurance agencies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an insurance agency business plan template step-by-step so you can create your plan today.

Download our Ultimate Insurance Business Plan Template here >

What is an Insurance Agency Business Plan?

A business plan provides a snapshot of your insurance agency as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Insurance Agency

If you’re looking to start an insurance agency or grow your existing insurance agency you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your insurance agency in order to improve your chances of success. Your insurance agency business plan is a living document that should be updated annually as your agency grows and changes.

Source of Funding for Insurance Agencies

With regards to funding, the main sources of funding for an insurance agency are personal savings, credit cards, bank loans, and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate the business.

The second most common form of funding for an insurance agency is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund an insurance agency unless it is based on a unique, scalable technology.

Finish Your Business Plan Today!

How to write a business plan for an insurance agency.

Your insurance agency business plan should include 10 sections as follows:

Executive Summary

• Company Overview

Industry Analysis

Customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of insurance agency you are operating and the status; for example, are you a startup, do you have an insurance agency that you would like to grow, or are you operating multiple insurance agency locations already.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the insurance agency industry. Discuss the type of insurance agency you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of insurance business you are operating.

For example, you might operate one of the following types:

• Direct Writer / Captive : this type of insurance agency only sells one insurance company’s products – like Allstate or State Farm
• Independent Insurance Agent : this type of insurance agency is privately-owned, and sells policies with may different insurance companies

In addition to explaining the type of insurance agency you operate, the Company Analysis section of your own business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new location openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

In your industry analysis, you need to provide an overview of the insurance business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the insurance industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards weather-related policy purchases, it would be helpful to ensure your plans call for flood insurance options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your insurance company business plan:

• How big is the insurance industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key insurance carriers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your insurance agency. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

The customer analysis section of your insurance agency business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, households, businesses, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of insurance agency you operate. Clearly baby boomers would want different pricing and product options, and would respond to different marketing promotions than recent college graduates.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most insurance businesses primarily serve customers living in their same geographic region, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Insurance Business Plan in 1 Day!

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With Growthink’s Ultimate Insurance Business Plan Template you can finish your plan in just 8 hours or less!

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other insurance agencies.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes self pay and public (Medicare, Medicaid in the case of health insurance) insurance or directly working with an insurance carrier. You need to mention such competition to show you understand that not everyone who purchases insurance does so through an insurance agency.

With regards to direct competition, you want to detail the other insurance agencies with which you compete. Most likely, your direct competitors will be insurance agencies located in your geographic region.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What insurance products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior insurance agency products/services?
• Will you provide insurance agency products that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an insurance agency, your marketing plan should include the following:

Product : in the product section you should reiterate the type of insurance agency that you documented in your Company Analysis. Then, detail the specific products/services you will be offering. For example, in addition to P&C insurance, will you also offer life insurance?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your insurance agency. Document your location and mention how the location will impact your success. For example, is your insurance agency located next to the Department of Motor Vehicles, or a heavily populated office building, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your insurance agency marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your insurance agency’s front store extra appealing to attract passing customers
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations (e.g., auto dealerships or car rental stores)
• Local radio advertising
• Banner ads at local venues

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your insurance agency such as serving customers, procuring relationships with insurance carriers, negotiating with repair shops, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your 500th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

To demonstrate your insurance agency’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in an insurance agency. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in insurance agencies and/or successfully running small businesses.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you acquire 20 new customers per month or 50? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your insurance agency location and/or website, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a successful insurance agency:

• Location build-out including design fees, construction, etc.
• Marketing expenses
• Website development
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Free Insurance Business Plan Template

You can download our insurance business plan PDF or sample insurance business plan to help you get started on your own business plan.

If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate Insurance Business Plan Template has numerous features not available in the free template including its financial projections template which automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements.

Insurance Business Plan Summary

Putting together a business plan for your insurance business will improve your company’s chances of success. The process of developing your plan will help you better understand the insurance market, your competition, and your customers. You will also gain a marketing plan to better attract and serve customers, an operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Additional Resources for Insurance Agents

• How to Write a Marketing Plan for an Insurance Agency
• How to Start an Insurance Agency
• Association for Independent Agents
• Business License Requirements By State For Insurance Agencies

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Insurance Company Business Plan

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Acme Insurance

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

By focusing on its strengths, its present client base, and new value priced products in the next year, Acme Insurance plans to increase gross sales by 10% and profit by 15%.

Our Keys to Success and critical factors for the next year are, in order of importance:

• Identify “Target Markets.”
• Institute our Property inspection program.
• Begin our “Insurance Partners” program.
• Develop a profitable property program.
• Provide small businesses with an affordable basic business package.

Acme Insurance Incorporated has been profitable, but recently we have had  declining market share  and this must be addressed. Therefore our goals are:

• To re-establish Acme Insurance Inc. as the market leader in quality and value-priced insurance products in Smalltown District.
• Establish good working relationships with our present insurance markets by meeting with their decision makers and plotting a mutual plan for success. Get commitments for support and products that we can market in our trading area starting April 1st of Year 1.
• Investigate new markets that meet our marketing criteria by a) committing to small rural brokerage; b) providing products suitable to our economic and social climate; and c) plans for the upload and download of insurance policies.
• Provide sales incentives to staff to meet sales goals of 10%.
• Complete inspection of all Pilot homeowners within one month before renewal date.
• Formulate plans to acquire another brokerage

Acme Insurance Inc. is dedicated to providing insurance products that provide quality protection with value pricing. We wish to establish a successful partnership with our clients, our staff members, and our insurance companies, that respect the interests and goals of each party.

Success will be measured by our clients choosing us because of their belief in our ability to meet or exceed their expectations of price, service, and expertise.

In order to implement our strategic goals, we will focus on developing the following tools.

• Knowledgeable, friendly staff that can empathize with our consumers needs and circumstances, especially in handling a loss.
• Policies that meet or exceed the expectations of our clients, and that are affordable, available, and understandable.
• Policies and endorsements delivered on time with minimal errors.
• A commitment to an annual insurance review for all of our clients. A phone call is more than any direct mass marketer offers. We believe personal contact and service is the cornerstone of our success.

Acme Insurance primarily markets and services Personal Lines Insurance. Its customers are mostly rural, lower income families or long time resident senior citizens who demand value priced insurance premiums in keeping with their lower and fixed incomes.

We also provide insurance to small business, mostly family-run seasonal operations primarily focused on the tourist trade.

Acme Insurance is a privately incorporated company in the Smalltown district and is licensed to transact both Life and General Insurance. The shares are held equally by John Smith and Peter Smith.

Our Insurance and Real Estate brokerage operates from two central locations. Our modern attractive office in Smalltown, at 178 Small Street, is located in a small plaza which is owned by the principals of our brokerage. It comprises 2,000 square feet.

In Nexttown, we operate from an 800 square foot, one-story brick veneer building overlooking Lake Small, which again is owned by the principals of our firm. The office is strategically located across from the Post Office.

We have stressed to our insureds the importance of good communication between the broker and client to insure proper coverage is in place. We have noticed as our clients become better informed about insurance that there has been a tremendous increase in clients wishing in-depth discussions about their policy coverage and how they can get the most value for their insurance dollar.

Our company’s strength lies in the quality and depth of our products and staff. Our offices, unlike our competition, are open six days a week. Because of our larger staff, we are able to service our clients even when a client’s broker is busy or out of the office on inspections.

Our staff has specialists in commercial insurance that can properly service and underwrite local business. We also have some quality commercial markets unavailable to our competition.

Our Real Estate division, which is a separate company, helps with market value and replacement cost analysis when required.

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 recession has curtailed insureds from properly maintaining their homes and automobiles, and insurance fraud has become a major issue for the entire insurance industry.

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 now have announced they will open stand alone insurance offices to retail insurance.

In spite of the above, we believe that the independent broker will survive. We are more automated than most service industries. We are close to the customer, regardless of some insurance companies’ attempts to sever the traditional broker-client relationship. Our clients, in most cases, still do not care or know which company we place them with. They trust our judgement in selecting the proper coverage and company to place them in.

Upload/download capabilities are in many brokers offices, including our own. This will cut costs, improve efficiency and accuracy, and help us meet the competition from banks and direct writers. Companies that truly value and trust the broker distribution system will align themselves with professional brokers and grant more underwriting authority similar to Lloyds.

Among the substitutes that are our main competition we have Local independent brokers, Agents (such as Co-operators), Mass Markets, Mass merchandise programs heavily advertised over the radio such as “Gray Power”, and Group Plans.

We have depended in the past on a small advertisement in our local newspaper, listings in the Yellow Pages, and word of mouth. However with the changes in the market today, we must begin to investigate alternate ways to put our name in front of the public. We have set out several criteria for our marketing campaign that include”

• All advertising has to emphasize our differentiation point rather than price.
• We must sell the company, not the product. In spite of some companies’ efforts to minimize the importance of the broker, our clients still identify with the broker, not the insurance company.
• We must improve and increase our contacts with our clients.
• Make contacts and support senior citizen groups and cottage associations.

Based on these changes in our goals, outlook, and company culture, we anticipate that we will be able to increase revenues substantially by year 3 of the plan and increase net profit handsomely. The company does not anticipate any cash flow problems.

1.1 Mission

1.2 Objectives

• Investigating new markets that meet our marketing criteria by a) committing to small rural brokerage; b) providing products suitable to our economic and social climate; and c) plans for the upload and download of insurance policies.
• Formulate plans to acquire another brokerage.

1.3 Keys to Success

We believe the keys to success in a small town insurance business are:

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

2.1 company ownership, 2.2 company history.

Acme Insurance was founded as a sole proprietorship in 1938 and was owned and operated by the founder Stan Smith. He originally ran the operation from his home, but moved to the business section of Smalltown when he outgrew his home based operation.

In 1972, the company constructed a new office building in the main business section and over the course of the last 15 years has purchased four other brokerages, one of which led to the establishment of our branch office in Nexttown.

In 1988, a new company was formed “Acme Insurance Inc.” which bought the insurance business from “Acme Insurance Limited.” All shares in the new company are owned by John S. Smith and Peter Smith.

Today, the fourth generation of Smiths, Stephen and Jason Smith, are working in the firm. We are also gratified to report that our founder, Stan Smith, is still in our office every day, and although still licensed, he is only active in a “goodwill ambassador” capacity.

2.3 Company Locations and Facilities

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.

3.1 Service Description

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.

3.2 Competitive Comparison

Since we are brokers, (not agents such as Co-operators), we have access to a range of standard and specialty markets.

3.3 Sales Literature

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.

3.4 Fulfillment

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).

3.5 Technology

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.

3.6 Future Services

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.

Market Analysis Summary how to do a market analysis for your business plan.">

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.

4.1 Market Segmentation

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.

4.2 Service Business Analysis

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.

4.2.1 Main Competitors

Local independent brokers Cal Roberts, Patrick C. Johnson, Rob Champlain

• Strengths – alternate markets, especially small farm mutuals, that still continue to give low prices, still continue to write wood stoves, and allow discounts and underwriting terms such as table 1 rates on homeowners within 8 km of fire hall protection.
• Weakness – most are smaller, one-man operations that do not have the backup or finances to aggressively impact the marketplace.
• Strengths – Large advertising budget and competitively priced products. Their commercial is difficult to compete against in some cases because they seem to not have the same restrictions on underwriting as our markets. Also they have large capacity to write certain risks.
• Weakness- one small operation that does not have the same hours as our offices. Staff, because of salary, do not appear to be very knowledgeable or aggressive.

Mass Markets

• Strengths – large advertising budget and very competitive prices.
• Weakness – not local and largely unknown to our clients at the present time.

Our own Companies

• Strengths – already known to our clients; will be competitively priced.
• Weakness – an unknown quantity to our insureds. Also, if their people skills are similar to what they now exhibit, they will have great difficulty empathizing with the client and selling the client what he needs, not what they think he needs.

Mass merchandise programs heavily advertised over the radio such as “Gray Power”

• Strengths – price.
• Weakness – a still untried, unknown quantity.

Group Plans – teachers, public employees

• Strength – group pricing.
• Weakness – very little obviously, since we insure very few of the professions.

4.2.2 Competition and Buying Patterns

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.

4.2.3 Business Participants

• Cal Roberts Insurance
• Markets – Royal, Dominion of Canada
• Patrick C. Johnson
• Markets – General Accident, Canadian Surety
• Rob Champlain
• Markets – Farmer’s Mutual, National Frontier
• Co-Operators
• Silver Power
• Markets – Trafalger
• Con-struct Direct

4.2.4 Distributing a Service

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.

Strategy and Implementation Summary

• Emphasize service and ongoing support . We must avoid selling only one policy at the lowest price for each customer and concentration account selling which greatly enhances client retention.
• Build an Insurance Partnership . The customer does not want to shop every year for a new broker. Concentrate on building a long term relationship with our customers and make the client and our staff appreciate the value of a long-term relationship.
• Focus on target markets . We must focus on personal and business customers that we identify and select to insure, instead of allowing potential customers to choose us, which could result in our brokerage attracting problem clients from other brokers.

5.2 Marketing Strategy

• Emphasize service and support.
• Build a partnership business based on account selling.
• Focus on senior, claims-free personal lines business and the profitable, well-run, small family business.
• Target small, non-franchise business that does not have access to group insurance plans.
• Investigate acquiring other brokerages in our area.

5.2.1 Promotion Strategy

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.

• All advertising has to emphasize our differentiation point rather than price. We will be developing a “Now what do I do?” message to emphasize the need for dealing with Acme’s insurance professionals so that in the event a loss occurs, you know you have the proper protection.
• We must improve and increase our contacts with our clients. All clients should be contacted before renewal to ensure covers are current and adequate. Also, new insurance should be solicited. We are investigating the production of a company newsletter or use of the I.B.A.O. newsletter which is distributed on a bi-annual basis.
• We have put our email address in our newspaper advertising, but we must be careful about attracting clients from out of the area who may be difficult to service and properly inspect.
• Make contacts and support senior citizen groups and cottage associations. Identify sports and hobby groups that involve seniors and cottagers.

5.2.2 Distribution Strategy

• Select Seniors We will give special attention to this market in our advertising. We will make a concerted effort to support and sponsor seniors programs in our area. We will seek out Cottage associations and offer support and advice to attract new senior clients who are recently retired or about to in the near future.
• Insurance Partners We will include inserts in renewal, endorsements, and correspondence stressing the importance of the insured taking an active interest and responsibility for trying to control the severity and number of claims. Our staff should take every opportunity, when discussing insurance with a client, to emphasize the consequences of multiple claims.
• Business Partners Again we should encourage insureds to take responsibility for controlling claims in partnership with their broker by installing alarm systems and continuing to maintain and upgrade their property. We should stress the benefit that good loss ratios help to control rates and ensure markets that want to write their business.

5.2.3 Positioning Statement

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.

5.2.4 Pricing Strategy

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.

5.3 Sales Strategy

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.

5.3.1 Sales Programs

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.

5.3.2 Sales Forecast

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.

5.4 Strategic Alliances

Some of our present companies have surveyed us to investigate co-operative advertising but we have not committed to any programs at present.

5.5 Service and Support

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.

5.6 Milestones

We have listed our plan milestones in the table below.

5.7 Service and Support

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.

6.1 Organizational Structure

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.

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