business plan for insurance company pdf

Free Download

Insurance Company Business Plan Template

Download this free insurance company business plan template, with pre-filled examples, to create your own plan..

Or plan with professional support in LivePlan. Save 50% today

Available formats:

What you get with this template

A complete business plan.

Text and financials are already filled out and ready for you to update.

• SBA-lender approved format

Your plan is formatted the way lenders and investors expect.

Edit to your needs

Download as a Word document and edit your business plan right away.

• Detailed instructions

Features clear and simple instructions from expert business plan writers.

All 100% free. We're here to help you succeed in business, no strings attached.

Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

More business planning resources

How to Write a Business Plan for Investors

How to Write a Business Plan

Business Plan Template

10 Qualities of a Good Business Plan

How to Start a Business With No Money

Simple Business Plan Outline

How to Create a Business Plan Presentation

Industry Business Planning Guides

Download your template now

Need to validate your idea, secure funding, or grow your business this template is for you..

• Fill-in-the-blank simplicity
• Expert tips & tricks

We care about your privacy. See our privacy policy .

Not ready to download right now? We'll email you the link so you can download it whenever you're ready.

Download as Docx

Download as PDF

Finish your business plan with confidence

Step-by-step guidance and world-class support from the #1 business planning software

The quickest way to turn a business idea into a business plan

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

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!

Don’t you wish there was a faster, easier way to finish your business plan?

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

Don’t you wish there was a faster, easier way to finish your Insurance business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing services .

Other Helpful Business Plan Articles & Templates

Insurance Agency Business Plan Guide + Free Example

July 6, 2023

Adam Hoeksema

The insurance agency industry offers substantial potential for growth and success. While some may perceive managing an insurance agency as a simple task, involving only policy sales and customer interactions, it actually requires careful planning and precise execution to thrive. Therefore, having a well-structured business plan is crucial for achieving success in this industry.

Our primary expertise lies in creating insurance agency financial projections . However, we understand that some of our clients seek comprehensive business plans. That's why we've taken the initiative to delve into this topic and cover the following aspects in our comprehensive insurance agency business plan guide and sample plan: 

Why write a business plan for an insurance agency?

What to include in an insurance agency business plan, insurance agency business plan outline, what type of insurance agency to start, how to analyze the competition for an insurance agency, how to create financial projections for an insurance agency, example insurance agency business plan, insurance agency business plan faqs.

Creating a well-structured business plan is crucial for insurance agency owners seeking financial support from investors, banks, or financial institutions. This plan should encompass a comprehensive evaluation of the insurance market, a clear and strategic approach, and a thoughtful assessment of potential risks and rewards. By showcasing your in-depth understanding of the insurance industry, your growth strategies, and your capability to navigate challenges, a robust business plan increases the likelihood of attracting the necessary funding for your insurance agency venture.

An insurance agency business plan should present persuasive reasons why clients will choose your agency's services, demonstrate why you or your team are the ideal operators for the insurance agency, and provide a robust financial projection to assure potential investors and lenders of the investment's viability. Below is a comprehensive outline of our complimentary insurance agency business plan template.

We suggest the following sections for your Insurance Agency business plan:

Executive Summary

Company Description

Market Analysis

Product and Service Offerings

Marketing Plan & Customer Acquisition

Operating Plan

Financial Plan

Choosing the right type of insurance agency will depend on your interests, expertise, and the market demand in your area. Here are some common types of insurance agencies you could consider starting:

General Insurance Agency:

A general insurance agency deals with a wide range of insurance products, including auto insurance, home insurance, business insurance, liability insurance, and more. This type of agency offers a diverse portfolio of insurance products to cater to a broad customer base.

Specialized Insurance Agency:

Instead of offering a wide range of insurance products, you can focus on a specific niche or industry. For example, you could start a health insurance agency, life insurance agency, or a commercial property insurance agency. Specializing can allow you to become an expert in a particular area and build strong relationships with clients in that niche.

Independent Insurance Agency:

Independent agencies work with multiple insurance carriers, giving them the flexibility to offer a variety of insurance products from different companies. This model allows you to compare coverage options and find the best policies for your clients' needs.

Captive Insurance Agency:

A captive agency represents a single insurance company and sells only that company's policies. While you have less flexibility in terms of product offerings, captive agencies often benefit from the support and training provided by the parent insurance company.

Online Insurance Agency:

With the rise of digital technology, you could consider starting an online insurance agency. This model allows you to reach a broader audience and provide insurance services through a website or app. It can be a cost-effective way to start and operate an agency.

Insurance Brokerage Firm:

Instead of focusing on selling insurance policies directly to clients, you could start an insurance brokerage firm. As a broker, you would act as an intermediary between clients and insurance companies, helping clients find the best coverage at competitive rates.

Before deciding on the type of insurance agency to start, conduct thorough market research to assess the demand for different types of insurance in your area. Also, consider your own skills, knowledge, and passion for specific insurance sectors. Having a clear understanding of your target market and your own expertise will guide you in making the right decision for your insurance agency. Additionally, make sure to comply with all legal and licensing requirements for insurance agencies in your region.

When it comes to analyzing the competition in the insurance agency industry, there are a few valuable tools you can use, with one of the most useful being Ahrefs.

Ahrefs is a powerful SEO tool that enables you to research and dissect your competitor insurance agencies' online presence. By inputting a competitor's website into Ahrefs, you can gain valuable insights into their organic traffic and the specific keywords responsible for driving that traffic.  For example, in Indianapolis we can see that Carson Insurance Agency is receiving roughly 100 monthly visitors from organic traffic.  

The tool provides valuable data on your competitor's organic traffic and highlights the keywords that are leading visitors to their website.

By understanding the keywords and SEO strategies employed by your insurance agency competitors, you can tailor your content and marketing strategies to effectively compete in the same areas or identify niche segments that may be underserved. This knowledge can help enhance your insurance agency's online visibility, attract more customers through search engines, and position your business for success in the competitive insurance industry.

SWOT Analysis: While not a digital tool SWOT analysis can be incredibly helpful in analyzing competition. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. By comparing these aspects between your agency and your competitors, you can identify areas where you might have a competitive edge or areas where you need to improve. Many business websites and educational institutions offer free SWOT analysis templates and guides that can be easily adapted for an insurance agency.

In the insurance agency industry, financial projections are influenced by distinct factors such as client acquisition rates, policy pricing, seasonal demand, and operational expenses. Using an insurance agency financial projection template can simplify the process and boost your confidence. However, accurate financial projections serve a greater purpose than just showcasing revenue potential; they paint a clear picture of the path to profitability and the achievement of your insurance business goals. By considering these crucial elements, you can create a solid financial plan that guides your agency towards success and ensures the realization of your objectives.

To create precise projections, follow these key steps:

Estimate startup costs for your insurance agency, including office space, technology infrastructure, licensing and certifications, marketing, and initial staff training.

Forecast revenue based on projected client acquisition rates, average policy premiums, and potential growth in your customer base.

Project ongoing operational costs , such as staff salaries, rent, technology maintenance, marketing expenses, and administrative overhead.

Estimate costs related to providing insurance policies and services, such as commission payouts to agents, underwriting expenses, and claims management.

Calculate the capital needed to launch and sustain your insurance agency, covering initial expenses and providing working capital for continued growth.

While financial projections are essential for your insurance agency's business plan, seek guidance from experienced professionals in the insurance industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about insurance market trends and evolving customer preferences to ensure your financial plan aligns with your goals and positions your insurance agency for long-term success.

Explore our comprehensive Insurance Agency Business Plan below. For your convenience, a downloadable Google Doc version of this insurance agency business plan template is available, allowing you to personalize and tailor it to your specific needs. Additionally, a helpful video walkthrough is provided, guiding you through the process of customizing the business plan to perfectly align with your unique insurance agency concept.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

Briefly introduce the company's background, products or services, and target market.

      -  Example: SecureRide Auto Insurance Agency is a leading provider of auto insurance solutions in Atlanta, Georgia. We specialize in offering comprehensive coverage options tailored to meet the unique needs of drivers in the area.

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example: Establish SecureRide as the go-to auto insurance agency in Atlanta, capturing a significant market share and achieving a 40% increase in policyholders within the first year. 

        - Example: Long-term: Expand our presence in Georgia and neighboring states while maintaining a high level of customer satisfaction.

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example: At SecureRide, our mission is to provide reliable and affordable auto insurance coverage to drivers in Atlanta. We are committed to ensuring our customers have the peace of mind they deserve on the road by delivering exceptional service and tailored insurance solutions.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example: Delivering competitive pricing and flexible coverage options tailored to our customer's needs. We prioritize superior customer service, ensuring responsiveness, transparency, and personalized support

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: SecureRide Auto Insurance Agency was established by Mark and Emily Roberts, who have a combined experience of over 20 years in the insurance industry. Mark brings expertise in risk assessment and underwriting, while Emily has a strong background in sales and customer relations.

   2.2. Legal Structure

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: SecureRide Auto Insurance Agency operates as a limited liability corporation (LLC)

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: SecureRide sets itself apart by offering customizable auto insurance coverage tailored to each client's specific needs. Our advanced technology allows for quick and accurate quotes, efficient claims processing, and a seamless customer experience.

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: Focuses on serving the residents of Atlanta, Georgia, and its surrounding areas. Our primary target market includes drivers of all ages and backgrounds who seek reliable, affordable, and comprehensive auto insurance coverage.

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The auto insurance industry in Atlanta, Georgia, is a thriving and competitive market, driven by the high number of vehicles on the road and the state's insurance requirements. With a growing population and an increasing emphasis on vehicle safety, the demand for reliable auto insurance coverage is expected to continue rising.

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: Atlanta Auto Insurance Company: A national insurance company with a branch in Atlanta, providing a wide range of auto insurance policies. 

        - Example: Indirect competitors:  EasyInsure Online: An online insurance platform that allows customers to compare and purchase auto insurance policies from various providers. 

3.3. Target Market Analysis

Explores the company's target customers, their demographics, preferences, and pain points.

        - Example: SecureRide’s target market in Atlanta, Georgia consists of young professionals, families and homeowners, commuters and business professionals, high-value vehicle owners, and retirees and seniors. 

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: SecureRide can seize market opportunities by leveraging digital marketing strategies to reach a broader audience, offering innovative coverage options such as usage-based insurance, and establishing partnerships with local car dealerships and auto repair shops. 

• Example 1: Conduct a survey among Atlanta residents to assess their knowledge of auto insurance providers and their satisfaction with existing options. This will help identify gaps in the market and potential opportunities for SecureRide. (e.g., 65% of surveyed residents are unaware of any specialized auto insurance agencies in Atlanta, indicating a potential market niche)
• Example 2: Analyze the market share and customer satisfaction ratings of established auto insurance companies in Atlanta to understand the competitive landscape and areas for differentiation. (e.g., Company X holds a 30% market share but receives consistently low customer ratings for claims handling, suggesting an opportunity for SecureRide to excel in customer service)
• Example 3: Keyword search volume to see growth in demand or specific types of boutique insurance needs

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: SecureRide offers a comprehensive range of auto insurance coverage options, including liability insurance, collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, and additional specialized coverage for high-value vehicles or specific driver profiles.

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: SecureRide adopts a competitive pricing strategy based on market analysis, offering affordable premiums and flexible payment options to ensure accessibility and value for customers.

4.3. Sales Strategy

  Explains how the company plans to generate sales and build

customer relationships.

        - Example: SecureRide will leverage a multi-channel sales approach, utilizing a combination of online platforms, direct sales efforts, and strategic partnerships with car dealerships and automotive service providers.

 Describes the methods through which the company will deliver its products or services to customers.

        - Example: SecureRide primarily operates through its physical office location in Atlanta, Georgia. Additionally, the company will have an online presence through a user-friendly website and mobile app allowing customers to conveniently access information, request quotes, and manage their policies.

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example: SecureRide will implement targeted digital advertising campaigns, including search engine marketing, social media advertising, and online display ads, to increase brand visibility and attract potential customers.

• Example 1: Develop partnerships with local car dealerships and auto repair shops to offer exclusive discounts on insurance policies to their customers. This can generate initial traction and referrals. (e.g., SecureRide establishes partnerships with three prominent car dealerships, resulting in 50 policy sales within the first month)
• Example 2: Launch a targeted digital marketing campaign that emphasizes SecureRide's competitive rates, personalized customer service, and quick claims processing. This can attract potential customers seeking a more customer-centric auto insurance experience. (e.g., The campaign generates 500 leads and converts 20% of them into policyholders within the first quarter)
• Example 3: Build a social following or Youtube channel that simplifies auto insurance for everyday people that can serve as a possible customer base when the business launches.

5. Operations and Management

5.1. facility location and layout.

 Specify the agency’s physical business location and refers to the internal arrangement and organization of the space.

        - Example: SecureRide is strategically located in a prime area of Atlanta, Georgia, ensuring easy accessibility for clients and proximity to major transportation routes. The facility is designed with a customer-centric approach, providing a welcoming reception area, private consultation rooms, and a well-organized layout that promotes efficient workflow and privacy for sensitive discussions

5.2. Staffing and Expertise: 

Ensures the agency can effectively serve its clients and provide comprehensive insurance solutions.

        - Example: SecureRide has a team of experienced insurance professionals who possess in-depth knowledge of the auto insurance industry, including underwriting, claims processing, risk assessment, and customer service. 

5.3. Customer Service:

 Involves the process of providing support to policyholders and potential customers throughout their insurance journey.

        - Example: Customer satisfaction and retention are key objectives for SecureRide. The agency strives to deliver personalized assistance to clients, addressing their insurance needs, offering guidance in policy selection, and providing prompt and efficient claims assistance. 

• Example: SecureRide's founding team brings a wealth of industry experience, ensuring a deep understanding of the auto insurance landscape and customer needs. For example, Mark Roberts, the CEO, has over 15 years of experience in the insurance industry, specializing in auto insurance. Sarah Roberts, the COO, has a background in risk management and claims handling, ensuring efficient operations and superior customer service.

5.4. Technology and Systems:

Refers to the utilization of advanced technological tools, software systems, and digital platforms .

        - Example: SecureRide leverages advanced insurance management systems and technology solutions to streamline operations, enhance efficiency, and improve customer experience. These systems enable seamless policy management, online quoting and applications, secure data storage, claims processing, and effective communication with clients. 

All of the unique Insurance Agency projections you see here were generated using ProjectionHub’s Insurance Agency Facility Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

  Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to breakdown how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of SecureRide. We estimate needing around $190,000 to cover our startup costs as well as cover losses until we become cash flow positive. $90,000 will come from personal investment & a small equity investment from another partner, and then we are seeking a $100,000 business loan.

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  SecureRide projects $359,000 in revenue in the first year. The company anticipates steady growth in revenue over the initial five-year period.

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: SecureRide's expenses include property lease, accounting, advertising, commissions, utilities, and software costs.

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: SecureRide’s expects to achieve profitability within the first few years of operation.

 Outlines the company's projected cash inflows and outflows.

        - Example: SecureRide cash flow projections account for fluctuations & onboarding additional agents.

  Determines the point at which the company's revenue equals its expenses.

        - Example: SecureRide anticipates reaching its break-even point in year 3 but the industry is very low margin.

Watch how to create financial projections for your Insurance Agency

Key Point  4 

• Example 1: Benchmark SecureRide's projected premium rates against industry averages and adjust accordingly to remain competitive while ensuring profitability. (e.g., SecureRide's projected average premium rate aligns with the industry average, indicating a realistic pricing strategy)
• Example 2: Conduct a thorough analysis of loss ratios and claim settlement ratios in the auto insurance industry to estimate SecureRide's potential expenses for claims payouts. (e.g., SecureRide projects a 70% claim settlement ratio, based on industry benchmarks, to ensure adequate reserves for potential claims)
• Example 3: Evaluate potential risks and their financial implications, such as increased competition, supply chain disruptions, or changing market conditions. (e.g., A 5% increase in the price of coffee beans could lead to a 2% decrease in CozyCorner's net profit margin)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

• Example: SecureRide's founders demonstrate their commitment to the business by investing a significant portion of their personal funds into the company's initial capital. They are also willing to personally guarantee loans and secure necessary insurance licenses and certifications, showcasing their dedication and belief in SecureRide's success.

How do I start an insurance agency?

To start an insurance agency, you'll need to obtain the necessary licenses and certifications, develop relationships with insurance carriers, determine your target market and insurance specialties, establish an office or online presence, create a marketing strategy, and hire and train staff.

How can I attract clients to my insurance agency?

To attract clients, develop a strong online presence and professional website, network with other professionals and businesses in related industries, offer valuable content through blog posts or educational resources, utilize social media platforms, and provide exceptional customer service.

What types of insurance should my agency offer?

The types of insurance your agency should offer may vary based on your target market and expertise. Consider offering common insurance lines such as auto, home, life, health, business, and specialty coverages based on the specific needs of your clients.

How can I stay updated with the latest insurance trends and regulations?

Stay updated with the latest insurance trends and regulations by joining industry associations, attending relevant conferences or seminars, participating in continuing education programs, subscribing to industry publications, and actively engaging with insurance carriers and professional networks.

How can I build trust and credibility as an insurance agency?

Build trust and credibility by providing transparent and reliable insurance information, maintaining strong relationships with reputable insurance carriers, offering personalized coverage recommendations, being responsive to client needs and inquiries, and being actively involved in the community you serve.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

Other Stories to Check out

8 ways to enhance your chances of getting approved for an sba loan.

Learn practical steps to increase your SBA loan approval odds. This guide offers 8 straightforward strategies from an experienced SBA loan officer.

Your Guide to the SBA Loan Application Process

Start your SBA loan application with confidence using ProjectionHub's comprehensive, free SBA Loan Application Checklist. Discover essential tips and resources from experienced professionals to streamline your loan process and enhance your approval chances.

How To Start a Self-Storage Unit Business and How Much Will it Make?

Self Storage facilities seem to be popping up all over the place recently and there's no slow down in sight. Follow this step by step to understand the basics of how to get your self storage business started, how much it will cost, and how much you stand to make!

Have some questions? Let us know and we'll be in touch.