In this material:
Insurance - profitable business. The competition in this market is serious, but if you invest once and organize everything correctly, you can get a solid monthly profit. Find out how to open an insurance company, what it takes to start a business, and how to get maximum profit with minimal investment.
Insurance business for a beginner: the basics
Let's figure out how relevant the insurance business is, what pros and cons it has, and what risk factors can overtake you when opening such a company.
Relevance
You can often hear: "No one is immune from ...". And this applies to absolutely everything. People insure everything from real estate to own life. The master will insure the eyesight, the singer - the voice, the perfumer - the scent, etc. Today, even pets are insured.
Insurance is so popular that people even insure their health against certain diseases (such as tuberculosis). And there is both voluntary and compulsory insurance.
The decision to open an insurance company will always be the right one, since such a service has been, is and will be relevant in the market.
Pros and cons of the insurance business
Positive aspects of opening an insurance company or agency:
- High business profitability;
- Increasing demand for insurance among various segments of the population;
- The ability to “customize” your services as flexibly as possible for a specific region of the country;
- You can open a franchise company and offer services on behalf of a reputable company.
Flaws:
- Difficulties with the execution of a large number of documents at the stage of opening a company;
- A large amount for the formation of the authorized capital - from 20 million rubles;
- The need to constantly monitor the market and competitors so that the company is always afloat;
- The risk of various unforeseen situations, due to the frequent appeal of people for insurance payments.
Remember! The insurance business is a profitable but risky business. Therefore, you need to initially weigh all the pros and cons, and only after that start organizing your business.
Risks
The risks of an insurance company's business plan are divided into categories.
up-to-date data is provided after ordering the PSU Market
Problems can arise at any stage of the formation / operation of the enterprise:
- Decreased demand for certain services due to reduced insurance payments;
- Unfair competition from other firms;
- Rising prices for equipment and materials that are extremely important for the normal functioning of the company;
- Increase in the number of affiliates of competitors' firms;
- Increasing the cost of paying for utilities, rent of premises, etc.
Financial
Such risks include delays in payment for goods by counterparties, choosing the “wrong” investor, problems with paying loans, collateral, etc.
Internal risks
The main problems may lie directly in the employees of the company. It is imperative to assess these risks, because the slightest conflicts and misunderstandings between employees can lead to serious problems:
- Strikes. Because of them, work can simply stop for an indefinite period. A common reason is salary delays;
- Disclosure of trade secrets. All important data will be shared with competitors;
- Litigation, fines, inspections. May arise due to the selection of unprofessional employees.
The most profitable types of insurance
One of the innovations is the insurance of large sums of money lying on bank accounts. Under this money, very solid deposits fall, and the cost of such insurance is quite high.
Property insurance will always be popular. Moreover, both ordinary apartment owners and landlords of country villas apply - the price of such property can be several million dollars.
Third advantageous view insurance - auto insurance. It includes both compulsory insurance of the OSAGO type, and other voluntary types that allow you not to worry about car theft or damage by ill-wishers.
Organization plan
To open an insurance company, you need to go through several mandatory steps, and take each one as seriously as possible. These include:
- Registration of an enterprise;
- Rent suitable premises for the office;
- Choice of equipment and furniture;
- Recruitment.
Company registration
AT without fail need to register entity. The form of ownership of the company can be any: LLC (company with limited liability), CJSC or OJSC (closed or open joint stock company).
From the types of activities you need to choose one that contains the word "insurance". But if it is planned to carry out examinations as part of the work, then they should also have a direct connection with insurance.
Important! More on preparatory stage you need to decide whether the company will insure life. This is important because, subject to the provision of such a service, the authorized capital must be at least 20 million rubles.
After registering a company, you need to obtain a license allowing you to provide insurance services. To do this, you need to submit to the Ministry of Finance:
- Constituent documents of the company;
- Business plan;
- Rules for the provision of insurance services;
- Tariff calculations.
The director of the enterprise will need to confirm his qualifications, work experience, and received legal education. The license is issued for about a year, and you will need to pay a state duty for this process. If everything goes smoothly, then the company will be entered into the state register of insurance companies, and you can immediately start working.
Office space
The office must have a representative look that inspires confidence - no one will carry their money to a company whose office is located in an old garage. Every client wants to come to a company with a respectable image and a good reputation.
The area of the premises must be chosen so that not only the working staff can fit in, but also so that the incoming customers feel comfortable. If the company is its own, then it must have a head office (at least 600 sq.m.), And city branches (200-300 sq.m. each).
The premises must be repaired, clean air, an atmosphere that inspires confidence. The design of offices should be the same, and designed in a single corporate style, which creates a good impression.
Furniture and equipment
Must form a positive opinion among visitors. Buy new, modern furniture highest quality. For each workplace you need to purchase equipment:
- Modern computer;
- Printer;
- Telephone;
- Fax;
- Scanner.
It is necessary to provide each employee with reliable access to the Internet, a dedicated telephone line. The office should have Appliances: kettle, refrigerator, microwave oven, etc.
Employees
You need to hire professionals who can not only serve visitors, but quickly solve pressing problems. Neglect interviews, studying resumes, etc. not worth it.
If examinations are carried out, then you can not recruit experts into your staff, but hire a specialist “from outside”, concluding an official deal with him. But, it is important to carefully study the company to which you plan to contact, and check all its documentation.
Advertising campaign: attracting the maximum number of customers
You need to promote the company based on the package of services provided. For example, if health insurance is being advertised, then you should contact large firms directly. market enterprises who want to improve working conditions for their employees.
The most popular customer acquisition channels are banks and car showrooms. Minus - they are used by most insurance companies. Initially, you will have to lower the prices for services in order to win the first customers.
The third channel to attract customers is to expand the range of services provided. You can use the insurance cross-selling scheme when several insurance options are offered at once.
The money side of the issue
As part of the business plan of an insurance agency or company, you need to calculate the initial and ongoing costs, and then predict the expected profit.
Initial investment and running costs
For each specific case, the initial amount will be different. It also depends on the region of Russia. But, speaking of approximate initial investments, it is worth mentioning the amount of 7,000,000 rubles.
What does it include:
- Room rental - 50,000 rubles. in a year;
- Preparation of documentation - 700-900 thousand rubles;
- Repair of premises and purchase of equipment - 2 million rubles;
- Advertising campaign - 3 million rubles;
- Administrative costs - 1 million rubles.
Total: 7 million rubles
Current expenses will consist of:
- Issues wages employees;
- Phone/Internet payments;
- Payments for utility services;
- Unforeseen expenses (for example, due to a breakdown of equipment);
- Printing of advertising literature;
- Promotion of the company in the market;
- Etc.
Profitability
To profit from insurance business constantly growing, you need to closely monitor all changes in the market, and monitor the activities of competitors. This is the only way to create an effective marketing plan and promptly make changes to the list of company services.
Important! To increase profits, it is not necessary to raise prices for services, it is much better to expand the list of services. Average profit with this approach, in a city with a population of 1 million or more, it will be 5-10 million rubles.
More about the profitability of the insurance business and payback periods
If the business plan of the insurance company was prepared in accordance with all the rules, then the profitability of the business will be about 2% per month of the invested funds. In order to accurately assess the profitability, you need to divide the monthly expenses by profit. On average, investments in an insurance company will pay off in about 4-5 years.
Auto insurance. How to start an insurance business
The insurance business in Russia is one of the few areas that, even today, during a protracted economic downturn, does not lose its relevance. Therefore, in this publication, we would like to consider the question of interest to many how to become an auto insurance agent.
Let's try to figure it out
Before talking about the steps that you need to take in order to start this business, you need to decide exactly how you want to implement it. To do this, you need to answer the following questions:
Do you want to be a company agent or represent the interests of several?
Do you have enough resources to implement this idea?
What kind of car insurance services do you want to provide?
And only after you determine all these nuances, you can begin to draw up a business plan, and calculate your potential profit.
Well, now, the actual plan itself is how to become an auto insurance agent.
1. Analyze the market, and determine the circle potential companies with whom you would like to cooperate;
2. Organize contacts with selected companies, get a list required documents. Study it and prepare the complete package;
3. Make up your resume, try to describe in detail your experience and personal qualities that allow you to work in this field;
4. Attend an interview and try to make the best impression;
After all the stages are completed, you can start your activity. You can start your activity! In order for your business to be successful, attend sales trainings, study all the information that will help you master the technologies of attracting new customers. It is necessary to do this, even if you consider yourself the owner of such an experience.
Auto insurance as a business
After the initial stage in the career of an insurance broker has been completed, it's time to think about how to reach the next stage and open an insurance contract sales office. Greatest potential in the range of insurance products, according to many experts, they have auto insurance.
In theoretical terms, the insurance process is a kind of relationship between the insured and the insurer, who are interested in protecting their property interests and liability from any unpleasant consequences. For this, an insurance contract is concluded between the parties, which specifies the amount of the contribution, the amount of payments and the procedure for their implementation.
On the other hand, the obligation of the insurer is to form a certain insurance fund, from which, in the event of an insured event, the insured pays compensation within the framework specified in the contract.
When thinking about how to open auto insurance, whether it is an office representative office or a newly created company, it is important to understand that the goal of the insurer, like any entrepreneur, is profit. AT this case its volume will depend entirely on the number of deals concluded, namely on the volume of sales of CASCO and OSAGO policies. In turn, profit, as well as the size of the insurance fund, is a guarantee of the stability of the company.
Based on practice Russian companies In order to succeed, you need to work in several directions at once. This is due to the fact that, firstly, sales of OSAGO are strictly regulated by the current legislation. And since in this case the insurer cannot influence the final price of the insurance product in any way, then, according to most experts and analysts, the business only selling CMTPL policies is initially not profitable. Secondly, such a multi-purpose project has a better chance of success from a commercial point of view.
On the other hand, the implementation of CASCO policies has a deeper potential than just the implementation of insurance contracts. So, in this case, the entrepreneur has more freedom in the formation of tariffs and coefficients.
But even in this case, it is impossible to say for sure which car insurance is better from a business point of view. Both programs have their own nuances. So OAGO practically does not make a profit, but CASCO has a low level of popularity associated with its high cost.
The combination of these two forms is considered the most rational way of doing business. In addition, as an alternative income, you can consider providing additional services, such as:
Services of an expert and appraiser;
Advisory assistance after an accident;
Technical assistance;
Other insurance products
The listed services can be added as additional options to the CASCO insurance policy.
It was general concepts about auto insurance products. Now let's talk more specifically.
How to open auto insurance (office)
In order to open a point for the sale of CASCO and OSAGO policies, you must first choose the right premises. In order for your costs to justify themselves, your office should be located just in a good place, and where a large number of your potential customers are possible.
According to most businessmen, before entering the new level and wondering how to open a car insurance office, you need to carefully calculate everything. Otherwise, the organized enterprise may not pay back the investment, and the novice businessman will fail.
A good place to open an auto insurance office today can be various shopping centers, business centers and other similar places.
What documents are needed for car insurance
Like any other, auto insurance as a business is, first of all, a registered company, the form of ownership of which is selected depending on the goals and scale of the project being implemented.
If we are talking about the creation of an insurance company, in this case, in addition to registering a legal entity, an appropriate license will be required, which can be obtained only if the authorized capital of the company is paid in full in the amount of at least 120 million rubles.
In the event that an entrepreneur is going to operate as an insurance agency, which, in fact, involves the conduct of an intermediary business, the following will be necessary:
Register an LLC or sole proprietorship;
Conclude agency agreements with partner insurance companies;
rent an office;
What documents are needed for auto insurance, it seems to us, is quite clear.
How to Become a Home Based Auto Insurance Agent
Modern technical capabilities in combination with changes in insurance legislation and the introduction of electronic certificates, has led to the fact that today it is possible to conduct an insurance business without leaving home.
If you are thinking about how to become an auto insurance agent at home, then the answer is obvious. You need to create a thematic portal through which you can invite all its visitors to offer your insurance offers.
However, one should not think that such a business concept will automatically generate income. Working through the Internet is a labor that takes not only time, but also requires a constant investment of other resources, such as money and a constantly updated knowledge base of the owner of such a business.
At the end of the publication, I would like to dwell on one more important point. When choosing auto insurance as a field of activity, which companies are better to choose as a partner.
In fact, when answering this question, it is very difficult to give specific recommendations, but we want to highlight a certain group of criteria that can be used when choosing a business partner.
The insurance company whose insurance products you are going to sell must have:
reliable reputation;
stable history;
comfortable conditions for cooperation;
an extensive branch network.
This is not the whole list of aspects to which you should pay attention. Nevertheless, even this is enough to understand in which direction it is necessary to move on.
Insurance today is considered one of the most promising and fastest growing areas. Russian business. The generally accepted classification has three main types of insurance: personal, property and liability. Auto insurance should be singled out as a special category, which attracts more and more entrepreneurs every year.
The interest shown by enterprising people in this type of activity is understandable - the number of cars is growing steadily, at the same time, the share of Vehicle purchased in the primary market. Most people who buy a new car prefer to protect themselves from the risk of damage or theft of property by concluding a CASCO agreement. In addition, motor third party liability insurance (OSAGO), recognized as mandatory in our country since 2003, does not lose its relevance today. Learning how to open an auto insurance office and what are the patterns of operation in this industry will help you establish own business with good prospects.
In a broad sense, insurance is a special type of relationship between two entities, one of which, the insured, is interested in protecting himself, his property and his liability from the onset of all kinds of adverse events. To this end, he concludes an agreement with the insurer, which must indicate the object of insurance, the amount of the insurance premium, as well as the amount and procedure for making payments.
The insurer, in turn, having a certain capital, assumes obligations to compensate for damage to the insured in the event of an insured event within the framework established by the contract and current legislation. The goal of any insurer, as an entrepreneur, is to make a profit, and the effectiveness of such a business directly depends on the number of transactions concluded. It is possible to ensure the financial stability of your enterprise only by forming a sufficient insurance fund.
Important! It should be understood that insurance in general, and auto insurance in particular, is a rather risky type of activity, since the occurrence of an insured event, and hence the need to make payments several times higher than insurance premiums, does not depend on the entrepreneur providing such services.
As for the objects of activity, auto insurance as a business provides for 2 fundamentally different areas:
- property CASCO insurance - is voluntary, the object is the car itself, it is insured against possible damage, as well as against theft;
- obligatory OSAGO liability insurance - the property interests of the car owner are recognized as an object, which are associated with obligations that arise as a result of harm to health and life of third parties, as well as their property (in other words, in the event of an accident that occurred through the fault of the insurer, the possible damage to the participants in such an accident is compensated by insurance company within the limits specified in the contract).
As domestic practice shows, it is inexpedient to work in only one direction. The fact is that OSAGO is strictly regulated by the authorities state power, tariffs for this type of insurance are established exclusively by the Government of the Russian Federation. The insurer cannot influence the final cost of the policy. According to experts, a business designed only for the sale of OSAGO insurance is obviously unprofitable.
In turn, CASCO opens up good opportunities for the insurer to earn money, as it involves independent management of tariffs and adjustment factors. However, due to its high cost, and also because it is not mandatory, CASCO is much less in demand among car owners.
The best solution for auto insurance business is the combination of both directions, as well as the provision of additional paid services, for example:
- assessment and expertise;
- assistance in case of an accident;
- life insurance;
- rendering technical assistance in case of an accident.
All these items can be included in the cost of insurance.
Having received general idea about auto insurance, we will understand issues related to organizing a business.
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If you are looking to start your own auto insurance business, you can follow one of the paths below. The choice will depend primarily on how starting capital you have, as well as on the scale of the enterprise you want to build.
Option 1. Creation of an insurance company
This option is the most expensive and labor intensive. When opening an insurance organization, it is necessary to be guided by the requirements of Russian legislation, namely:
- chapter 48 of the Civil Code of the Russian Federation;
- the law "On the organization of insurance business in the Russian Federation";
- the federal law No. 40-FZ "On Compulsory Insurance of Civil Liability of Vehicle Owners".
According to the above regulatory documents, the insurance company must have the status of a legal entity, that is, in order to obtain a work permit, it is necessary in the tax service.
In addition, such a company will need a license to carry out insurance activities. Since 2013, the licensing authority has been the Insurance Market Department of the Central Bank of the Russian Federation. In order to obtain a license, it is necessary to provide the licensing authority with documents proving that the organization has an insurance reserve sufficient for conducting activities. The main requirement is the presence of a fully paid authorized capital in the amount of at least 120 million rubles.
Important! It is not allowed to contribute borrowed funds and pledged property to the authorized capital.
The requirements for the licensee in the case of motor insurance also include:
- minimum experience in the field of CASCO and OSAGO insurance - 2 years;
- availability of an authorized representative in each of the constituent entities of the Russian Federation;
- Access to automated system compulsory insurance;
- membership in a professional association, which is the Russian Union of Motor Insurers (RSA), etc.
The law also establishes requirements for the insurance portfolio of such organizations. The amount of insurance premiums (contributions) that fall on OSAGO and CASCO insurance in the total amount should not exceed 50%. That is, a company cannot only deal with vehicle insurance and motor third party liability, the scope of its services should be much wider to ensure financial stability.
From all it follows that in order to open your own insurance company, you need to have a large start-up capital and significant experience in the insurance industry. But along with this option, there are other, more available ways make money from car insurance.
Option 2: Work as an agency
This is a simplified version of the implementation of insurance activities and, in fact, it is an intermediary scheme. That is, you do not need to create a legal entity and obtain the appropriate license. You can work in status individual entrepreneur and represent the interests of several existing insurance companies at once.
How to open an auto insurance office? To do this, you need to follow a few relatively simple steps:
- choose the companies with which you will cooperate and make a request for the conclusion of an agency agreement;
- pass interviews and prove their usefulness to representatives of insurance organizations, conclude contracts and, if necessary, undergo training (requirements for agents may vary);
- rent and equip an office space with Internet access;
- to advertise their services.
The profit of such a business will consist of an agency fee, provided as a percentage or a certain amount from each issued policy. Efficiency will depend entirely on your communication skills, activity and professionalism. More customers - more issued insurance - more profit.
The amount of remuneration for agents is not usually disclosed openly, it can be clarified with representatives of a particular insurance company in person. If you believe the reviews of already operating agencies, earnings range from 10 to 30% of the cost of the policy.
The advantages of this format of work compared to opening your own insurance company include the fact that the entrepreneur practically does not risk anything. In the event of an insured event, cash payments are made by the insurer whose product was sold to the client.
Important! The insurance agent is responsible for maintaining the data of the insurer representing trade secret, non-disclosure of personal data of clients (insured), as well as for the safety Money received from policyholders and proper use of insurance policy forms.
Opening an insurance agency according to this scheme is the most common option for a car insurance business that does not require significant financial investments at the start, and at the same time, allowing you to make good money.
For more information about the principles of the insurance agency, see the following video:
Option 3. Brokerage
Another option to build in the auto insurance industry is to become a broker. A broker is a classic intermediary. Its difference from the agent is that it cannot represent one of the parties to the insurance contract. He has the right to act in the interests of one party or another as an independent subject of insurance.
Thus, by carrying out brokerage activities, an entrepreneur on contractual terms can receive cash reward either from the insurer or from the insured (only from one party) for the performance of certain functions. Most often, it is insurers who resort to the services of brokers, the most popular among which are:
- advice in choosing an insurance company;
- assistance in drafting the contract;
- selection of the optimal insurance product;
- support and amendments to the contract, etc.
Services of such intermediary enterprises, as a rule, are paid in the form of a fixed fee.