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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

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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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How To Write an Insurance Company Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for insurance companies that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every insurance company owner should include in their business plan.

Download the Ultimate Insurance Business Plan Template

What is an Insurance Company Business Plan?

An insurance company business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an Insurance Company Business Plan?

An insurance company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Insurance Company Business Plan

The following are the key components of a successful insurance company business plan:

Executive Summary

The executive summary of an insurance company business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your insurance company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your insurance company , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your insurance company firm, mention this.

You will also include information about your chosen insurance company business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of an insurance company business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the insurance industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of an insurance company may include individuals, families, small businesses, and large corporations.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or insurance company services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your insurance company may have:

• Specialized industry knowledge
• Proven track record
• Strong customer relationships
• Robust product offerings
• Innovative solutions

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. 
• Or, you may promote your insurance company business via word of mouth.

Operations Plan

This part of your insurance company business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an insurance company include reaching $X in sales. Other examples include expanding to a new geographic market, launching a new product or service line, or signing on new major customers.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific insurance industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Insurance Company

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Insurance Company

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup insurance company business.

Sample Cash Flow Statement for a Startup Insurance Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your insurance company . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it. All in all, a business plan is a key to the success of any business.  

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Top 5 Insurance Business Plan Templates with Examples and Samples

Success in the insurance business is not about avoiding risks, but rather understanding and managing them effectively.

- Warren Buffett

With his remarkable business acumen, Warren Buffett shares a profound quote that captures the essence of what it takes to succeed in the insurance industry. In a world filled with uncertainties, insurance serves as a safety net, providing individuals and businesses with financial protection against unforeseen events.

Insurance agency leans on insurance business plan templates as their trusted allies, helping them through the complexities of the industry. These templates offer an insurance broker/ insurance agency structured framework to clearly define goals, strategies, and financial projections.

In this blog post, we are here to lend a helping hand and introduce you to some of the best insurance business plan templates. Whether you're venturing into a new start-up in some type of insurance like, home, life, health, automobile insurance or seeking to revamp your current insurance plan, these templates will serve as your guiding star by unveiling the finest selection of insurance business plan templates.

Elevate Your Planning with These Top 5 Insurance Business Plan Templates

Template 1 - insurance business plan powerpoint presentation slides.

This insurance business plan template presents a captivating blend of functionality and aesthetics. This content-ready PPT slide showcases the critical success factors, mission, vision, and start-up summary, while also incorporating a potential growth analysis, including SWOT analysis and Porter's five force analysis model, customer analysis, and market sizing. While adopting an appealing color palette of soothing blues, vibrant yellows, and sophisticated greys, this engaging color blend evokes a sense of trust, professionalism, and stability that are essential attributes in the insurance industry and also instils confidence in your brand. Check out more about this template here.

Download Now!

Template 2 - Insurance Business Plan Word Document Template

Designed with meticulous attention to detail, this template offers a versatile solution for insurance agencies, brokers, and professionals. It includes comprehensive sections covering every vital aspect of an insurance business plan. It encompasses market analysis, target audience identification, marketing strategies, financial projections, risk assessment, and growth plans. Its inclusive approach ensures a thorough and well-rounded plan. Get your hands on it now and leave your audience in awe with each and every delivery.

Template 3 - Insurance Business Plan PowerPoint Template Bundles

This template offers twelve slides with high-quality visuals, graphics, and images to showcase your expertise effectively. Each slide focusses different aspects of insurance, making information interpretation easier for your audience. The well-researched content stimulates strategic thinking, ensuring your message is conveyed with ease. The design's standout feature is its editable elements, allowing customization of colors, fonts, backgrounds, and more. Grab this template now for unique and captivating presentations every time.

Template 4 - Market Share Assessment for Insurance Business Plan

This ready to use PPT template is expertly designed to highlight market share assessment for an insurance business plan. It consists of a pre-built pie-chart to exhibit the scenario of a market place of insurance companies.  Discuss different insurance market characteristics and help your audience make informed decision with this pre-designed PPT slide.  Grab your copy now and confidently deliver a persuasive presentation that convinces your audience.

Template 5 - Business Insurance Actionable Steps Template

This ready-made PPT template covers the usage of insurance plan for organizations. Use this flexible PPT diagram and craft a compelling presentation to persuade your audience to invest in different insurance options that safeguard their finances and assets. It offers a structured approach, ensuring that the plan aligns with goals and captures the attention of stakeholders. With its visually appealing design, compelling graphics, and concise text, convey complex information in a clear and impactful manner.

Using business plan templates for an insurance broker agency is a game-changer. It streamlines the planning process, ensuring a clear roadmap for success. We have highlighted the top 5 insurance business plan templates and examples, showcasing their effectiveness in guiding your business strategy. Don't miss out on this opportunity to leverage these templates as a springboard for your own business plans, tailoring them to suit your unique goals. For further assistance, we recommend exploring additional resources and tools that can enhance your business planning journey. Check out this page to unlock your agency or brokerage's full potential.

FAQs on Insurance Business Plan

What is an insurance business plan.

An insurance business plan is a detailed roadmap that outlines the goals, strategies, and operations of an insurance company. It holds significant value in the insurance field to set clear objectives, identify target markets, and determine financial projections. For insurance startups, strong business insurance guides the company, lures investors, and ensures essential licenses.

How to start an insurance startup?

To start an insurance agency, one can conduct thorough market research, define your target audience, obtain necessary licenses, develop a comprehensive insurance business plan, establish strategic partnerships, leverage technology, and create a marketing strategy. Adapt and evolve

your strategies to seize industry opportunities.

What are the 4 types of insurance?

The four types of insurance are Health, Life, Home & Automobile insurance. Health insurance helps with medical expenses, life, and annuity insurance provides financial support to loved ones after you pass away, home/property and casualty insurance covers damage or theft of your property, and automobile insurance protects against car accidents.

What are the 7 main types of insurance?

The seven main types of insurance are Property, Marine, Fire, Liability, Guarantee, Social & Life, and annuity insurance. These cover various aspects, including financial support after death, coverage for marine-related risks, liability-related risks, guarantees, social welfare benefits, and protection for damaged assets and personnel injuries by taking property and casualty insurance.

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Insurance Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Insurance Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Insurance Agency Business Plan

You’ve come to the right place to create your own business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their insurance companies.

Essential Components of a Business Plan For an Insurance Agency

Below we describe what should be included in each section of a business plan for a successful insurance agency and links to a sample of each section:

• Executive Summary – In the Executive Summary, you will provide a high-level overview of your business plan. It should include your agency’s mission statement, as well as information on the products or services you offer, your target market, and your insurance agency’s goals and objectives.
• Company Overview – This section provides an in-depth company description, including information on your insurance agency’s history, ownership structure, and management team.
• Industry Analysis – Also called the Market Analysis, in this section, you will provide an overview of the industry in which your insurance agency will operate. You will discuss trends affecting the insurance industry, as well as your target market’s needs and buying habits.
• Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
• Competitive Analysis – This section will provide an overview of your competition, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your insurance agency from the competition.
• Marketing Plan – In this section, you will detail your marketing strategy, including your advertising and promotion plans. You will also discuss your pricing strategy and how you intend to position your insurance agency in the market.
• Operations Plan – This section will provide an overview of your agency’s operations, including your office location, hours of operation, and staff. You will also discuss your business processes and procedures.
• Management Team – In this section, you will provide information on your insurance agency’s management team, including their experience and qualifications.
• Financial Plan – This section will detail your insurance agency’s financial statements, including your profit and loss statement, balance sheet, and cash flow statement. It will also include information on your funding requirements and how you intend to use the funds.

Next Section: Executive Summary >

Insurance Agency Business Plan FAQs

What is an insurance agency business plan.

An insurance agency business plan is a plan to start and/or grow your insurance business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your insurance agency business plan using our Insurance Agency Business Plan Template here .

What Are the Main Types of Insurance Companies?

There are a few types of insurance agencies. Most companies provide life and health insurance for individuals and/or households. There are also agencies that specialize strictly in auto and home insurance. Other agencies focus strictly on businesses and provide a variety of liability insurance products to protect their operations. 

What Are the Main Sources of Revenue and Expenses for an Insurance Agency Business?

The primary source of revenue for insurance agencies are the fees and commissions paid by the client for the insurance products they choose.

The key expenses for an insurance agency business are the cost of purchasing the insurance, licensing, permitting, and payroll for the office staff. Other expenses are the overhead expenses for the business office, utilities, website maintenance, and any marketing or advertising fees. 

How Do You Get Funding for Your Insurance Agency Business Plan?

Insurance agency businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Other options for funding are outside investors, angel investors, and crowdfunding sources. This is true for a business plan for insurance agent or an insurance company business plan.

What are the Steps To Start an Insurance Business?

Starting an insurance business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Insurance Business Plan - The first step in starting a business is to create a detailed insurance business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your insurance business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your insurance business is in compliance with local laws.

3. Register Your Insurance Business - Once you have chosen a legal structure, the next step is to register your insurance business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your insurance business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Insurance Equipment & Supplies - In order to start your insurance business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your insurance business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful insurance business:

• How to Start an Insurance Business

Where Can I Get an Insurance Business Plan PDF?

You can download our free insurance business plan template PDF here . This is a sample insurance business plan template you can use in PDF format.

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Insurance Company Business Plan

An insurance agency can become a profitable business if done right. After all, insurance companies as a business help people deal with uncertainties, and that is something all of us want.

And if you have good negotiation skills, are brilliant at planning, and have a thorough knowledge of how insurance works then you might have thought of having your insurance agency.

If yes, then what are you waiting for?

Get started because now is a time as good as any. All you need is a little industry information and an insurance company business plan to help you have a thriving business.

Industry Overview

The global insurance industry stands at a whopping value of 5.3 trillion US dollars in 2022 and is expected to grow at a rapid pace going forward too.

The major reason for the growth of the insurance sector comes from the increasing uncertainty of life, property, and everything else that concerns people.

The increase in disposable income amongst people has also contributed significantly to the growth of the sector.

But as everything good attracts competition, the insurance industry attracts a lot of competition too. And if you want to stand out amongst all of it, you’ll need to be brilliant at what you do. Proper steps to set up your business and planning can help you with that.

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Things to Consider Before Writing Your Insurance Company Business Plan

Know the industry.

The first step towards having a successful business is to research the industry and know what you are getting yourself into. It helps you understand the ins and outs of the business and what steps you should take to help your business succeed. It also helps you stay updated with the latest trends and use them to your advantage.

Get the necessary licenses and permits

As insurance companies are prone to lawsuits, fraud, and other such problems, having all the necessary documents can help you stay on the right side of the law. The licenses and permits act as an assurance for both your clients and your business that you’ll be able to deal with any legal hassle that comes your way. And as you don’t need to worry about the legalities you can focus on what really matters.

Know your audience

Knowing your target audience, their fears, motivations, and preferences can give you the required edge over your competitors. As you know your customers you’re able to serve them better. This eventually makes them return to you and build long-term and mutually beneficial relationships with your customers.

Promote your business

Promoting your business is foundational to success because for your business to work you need to let people know that your business exists. Hence, once you get to know your target audience, it is important to promote your business in a way that speaks to your target audience.

Chalking out Your Business Plan

If you are planning to start a new insurance company, the first thing you will need is a business plan. Use our sample insurance company business plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new insurance business, spend as much time as you can reading through some examples of  insurance-related business plans .

Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample insurance company business plan for you to get a good idea about what a perfect insurance business plan should look like and what details you will need to include in your stunning business plan.

Insurance Company Business Plan Outline

This is the standard insurance company business plan outline which will cover all important sections that you should include in your business plan.

• Keys to Success
• 3 Year profit forecast
• Startup cost
• Funding Required
• Company Ownership
• Company Locations and Facilities
• Service Description
• Competitive Comparison
• Sales Literature
• Fulfillment
• Future Services
• Market Analysis
• Competition and Buying Patterns
• Business Participants
• Distributing a Service
• Cal Roberts, Patrick C. Johnson, Rob Champlain
• Agents (such as Co-operators)
• Mass Markets
• Group Plans – teachers, public employees
• Promotion Strategy
• Distribution Strategy
• Positioning Statement
• Pricing Strategy
• Sales Programs
• Sales Forecast
• Sales Yearly
• Strategic Alliances
• Service and Support
• Organizational Structure
• Startup Funding
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample business plan into your business plan and modify the required information and download your insurance company business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample insurance company business plan

Need help writing your business plan from scratch? Here you go;  download our free insurance company plan pdf  to start.

It’s a modern business plan template specifically designed for your insurance company business. Use the example business plan as a guide for writing your own.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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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!

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

Executive Summary

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 business 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 customers. Provide a snapshot of your marketing plan. 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 agency 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 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.

Industry Analysis

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 agency business (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.

Customer Analysis

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 agencies 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!

Competitive Analysis

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 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.

Marketing Plan

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

Operations Plan

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.

Management Team

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 the insurance agency business. 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.

Financial Plan

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 an 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.

Insurance Business Plan Summary

Putting together a business plan for your insurance agency is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the insurance agency business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful insurance agency.

Download Our Insurance Business Plan PDF

You can download our insurance business plan PDF here . This is a business plan template you can use in PDF format.

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You can download our insurance business plan PDF template here . This is a business plan template you can use in PDF format.

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Launch Your New Insurance Agency With This Business Plan Template

Whether you're a brand new agent or one with several decades of experience, the idea of opening a new insurance agency probably seems daunting—where do you start?

One of the first things you’ll need to do is come up with a business plan for your insurance agency. After all, you can walk into a bank or a potential investor’s office looking for funding, but you won’t get very far unless you have a robust insurance agency business plan that proves you’re on the right track toward turning a profit in the near future.

Follow the steps below when building out your insurance business plan to maximize your chances of securing funding and getting your new agency off to a strong start.

7 Steps To Build Your Insurance Agency Business Plan

1. develop your executive and business summaries..

In business plan terms, the executive summary is the driving force behind your other decisions. It should explain why you’re starting your agency. The business summary is similar, but it should narrow down your “why” into a list of “hows.”

Ask yourself:

• Why do you want to open an agency?
• What types of insurance do you wish to sell?
• What do you hope to accomplish?
• What return on investment do you expect to receive?
• How are you going to generate demand and ensure supply for your service?

Jot your answers down so you can refer back to them as you move forward.

2. Decide whether you want to be a captive agent or an independent agent.

Many large agencies, such as Allstate and Farmers, work with captive agents who can only sell insurance for that specific provider. Independent agents, on the other hand, can sell insurance for multiple providers, but they get locked out of working with the big-name captive carriers who only work with captive agents. (Read more about captive agents here and get a seasoned agent’s POV on both types of agents here. )

Before you can nail down the details of the rest of your business plan, you’ll have to make a choice between these two options.

3. Do a market analysis.

Though it might seem like a tedious process, conducting a thorough market analysis is crucial to your success. Analyzing your local market—including the backgrounds, shopping behaviors, and preferences of your target customers—gives you the insights you’ll need to attract these folks to your business.

Your market analysis will look a little different depending on whether you prefer to be a captive or an independent agent. The state you live in is another factor that will affect your analysis—in fact, it may even influence your decision to be captive or independent.

Take a close look at the demographics of your region.

• How many homeowners live in your state?
• What’s the average insurance premium per home?
• How many people live in each home, on average?
• How many drivers live in your state?
• How many vehicles does the average household own?
• Do you live in an area with an aging population ?
• How many families live in your region?
• What insurance carriers do locals in your state gravitate toward?
• In your area, what might be some successful strategies for retaining clients (rather than just acquiring them)?

These questions are all important, but pay particular attention to the last one. If you open an agency without a plan for client retention, you’re going to struggle. And, unfortunately, this is one of the most overlooked aspects of an insurance agency business plan.

4. Identify where you’ll find your first clients.

It’s one thing to know there are X number of potential clients living in your state, but it’s quite another to have a plan that will help you reach out to those folks and land your first policy sales.

Some investors will require a list of leads before they’ll even consider funding your agency. Even if it’s not a requirement, it’s always a good idea to have a pipeline ready to go. This is where getting set-up for purchasing warm leads from EverQuote can put you in a great position for success.

Plus, tackling this step before you even open your doors will help you better understand the costs you’ll incur—and therefore how much startup funding you will need.

You might also consider other options, such as placing ads in local newspapers, going to networking events, investing in digital marketing, sponsoring local Little League teams, or asking for referrals.

5. Create a financial plan.

Many new agencies fail because their owners overlooked something critical during startup. Do your best to look at your financial plans from every angle:

• Where will you find leads, and how much will they cost?
• What is your advertising budget?
• Does this budget line up with the going rates of local newspapers, billboards, or online ads?
• Do you plan to have 1099 employees or W2 employees selling insurance for your agency?
• How will you decide on a commission and benefits structure for these employees?
• What retention and loss ratios (for clients and employees) do you expect based on the numbers of other agencies in your area?
• How will you handle the delay between policy renewals and income hitting your bank account?
• If there are X amount of people shopping for insurance in your area, what percentage of those people are in a niche you can serve?
• From that percentage of potential clients, how many do you think you can successfully land?
• If you sell policies to these customers, how much will you earn from their premiums?
• How do your projected profits compare to your expected advertising costs, the cost to buy leads, office rent, and other expenses?

Take detailed notes of your calculations, and try to run the numbers a few different ways to obtain a conservative outcome, a likely outcome, and a “best case scenario.”

6. Draw up a formal business plan using a proven format.

Your notes will be incredibly valuable as you move forward, but you’ll need a way to present them clearly and concisely in a way that looks attractive to investors.

Loan officers and investors don’t want to read long-form essays detailing your business background and your ideas for the future. Keep your format simple and straightforward, with clear sections that answer the questions investors will want to know.

We recommend a format similar to the following:

Executive Summary Overall mission Primary objectives Keys to success Financial plans Profit forecast for at least three years Business Summary Business overview Summary of startup costs Funding you’ll require Company executives/ownership Services Services you provide Market Analysis Overall business analysis Details of your competition Buying patterns of your competition Your planned buying patterns Market segmentation and analysis Target market strategies Include details for each market segment Strategy Your competitive edge Marketing strategy Sales strategy Yearly sales projections Key milestones Management Your plan for finding staff Financial Plan Funding you have accepted Funding you will need Detailed startup costs Calculations for your break-even point Projected profit Yearly profit Gross and net yearly profit Anticipated losses, if any Cash flow patterns Plans for balance sheet Calculations of important business ratios

7. Revise and adjust your plan over time.

You may not secure funding for your agency immediately. Even if you do, you’ll likely find that your real world numbers don’t match up exactly with your calculated projections. Plus, carriers frequently change their underwriting policies, and the economy itself is always in a state of flux.

Keep your business plan current by updating the information anytime circumstances change.

Start your journey with a full lead pipeline from EverQuote.

One of the scariest parts about starting a new agency is not being certain where and when you’ll be able to start making sales.

Skip the fear and the unknown and go right to making sales with warm real-time leads from EverQuote. Whether you’re still trying to find startup funding or your doors are already open, you can always boost your business and maximize your chances of a steady income by working with EverQuote.

Connect with us today.

Topics: Featured , Insurance Agency Growth

About the Author Chris Durling, VP of P&C Sales

Chris Durling is a visionary leader in P&C insurance sales and distribution, with over 10 years of experience in the industry.

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• Business Insurance

Types of Business Insurance Plans: How to Decide Which Is Right for You

Insurance can help you protect your business from a variety of risks. Some of the most common types of business insurance plans include:

• General liability insurance
• Commercial property insurance
• Business income insurance
• Professional liability insurance
• Workers’ compensation insurance
• Employment practices liability insurance
• Product liability insurance
• Commercial auto insurance
• Commercial umbrella insurance
• Cybersecurity insurance

Understanding how each type of business insurance (also referred to as commercial insurance ) works can help you determine which coverage options you may need.

Key Takeaways

• Business insurance is designed to protect business owners from financial losses associated with a range of covered events.
• Different types include general liability, commercial property, and workers’ compensation insurance.
• Like other types of insurance, business insurance can require you to pay premiums as well as deductibles.
• There are several different varieties of business insurance that you could use to protect your business.
• Purchasing a package policy that includes several different types of coverage is one way to save money on business insurance.

Types of Business Insurance

The figures listed above represent the average monthly cost of various small business insurance products, according to Insureon, an online marketplace for small business insurance. The actual cost of insuring a small business may be lower or higher, depending on your unique situation and needs.

1. General Liability Insurance

General liability insurance provides liability coverage if your business is sued. This type of coverage is fairly comprehensive and can protect you against claims stemming from a number of different circumstances.

What risks does it protect against? General liability insurance protects you against lawsuits filed by people outside of your company, such as suppliers or customers.

What costs does it cover? This type of policy can cover the costs of a lawsuit, including settlements paid to claimants and medical expenses related to personal injury claims.

Forgoing general liability insurance could leave your business open to significant losses if you’re sued.

2. Commercial Property Insurance

Commercial property insurance protects your business property against a wide variety of losses. For example, if your property is damaged as a result of a natural disaster or civil unrest, your policy could pay to repair or replace affected assets. A civil authority provision addresses business closures as a result of government actions after a disaster or life-threatening event.

What risks does it protect against? Commercial property insurance covers damage resulting from fire, smoke, wind, hail, civil disobedience, and vandalism .

3. Business Income Insurance

Business income insurance is a type of coverage designed to supplement commercial property insurance. This kind of policy protects you if your business income is interrupted due to property damage .

What risks does it protect against? Business income insurance protects you against missing income associated with the slowdown or suspension of business resulting from damage to property.

What costs does it cover? This type of policy helps to replace lost income from operations.

4. Professional Liability Insurance

Professional liability insurance is liability coverage for losses resulting from perceived mistakes that you made in doing your job. You may purchase this type of insurance to supplement any events not covered by a general liability policy.

What risks does it protect against? Professional liability insurance can protect against lawsuits that may arise as a result of negligence, malpractice , or errors.

What costs does it cover? This type of policy can pay out benefits to cover lawsuit settlements and legal fees.

5. Workers’ Compensation Insurance

Workers’ compensation insurance is a type of liability coverage that protects your business if one of your employees gets injured on the job. State law can determine what types of businesses are required to have workers’ compensation coverage.

What risks does it protect against? Workers’ compensation insurance is designed to cover on-the-job injuries.

What costs does it cover? This type of policy can pay medical bills for injured employees and provide them with income replacement until they’re able to return to work.

6. Employment Practices Liability Insurance

Employment practices liability insurance is intended to protect your business from lawsuits stemming from claims relating to unlawful hiring or employment practices. If you’re sued, your policy could pay legal fees or settlements to claimants.

What risks does it protect against? Employment practices liability insurance can cover a range of situations, including lawsuits filed in connection with wrongful termination , discrimination, sexual harassment, and retaliation.

What costs does it cover? This type of policy can cover legal fees and settlements.

7. Product Liability Insurance

Product liability insurance protects businesses that manufacture or produce tangible products. Specifically, this coverage insures against claims for defective products that cause injury or bodily harm.

What risks does it protect against? Product liability insurance protects your business when someone sues you over a defective product that has caused injury, bodily harm, or death.

8. Commercial Auto Insurance

Commercial auto insurance works similarly to personal car insurance, but it’s designed to protect business vehicles. The type of coverage you need and the coverage limits required can vary from state to state.

What risks does it protect against? Commercial auto insurance protects you against damage related to accidents, vandalism, or theft of company vehicles.

What costs does it cover? This type of policy can cover repair costs, medical bills, legal fees, and settlements.

9. Commercial Umbrella Insurance

Commercial umbrella insurance is designed to cover risks not covered by other types of business insurance. For example, if you’re sued and you’ve maxed out the coverage limits of your general liability policy, an umbrella policy could help to fill the gaps.

What risks does it protect against? Commercial umbrella insurance can help you to minimize financial losses stemming from lawsuit settlements that exceed other business insurance coverage limits. 

What costs does it cover? This type of policy covers legal fees and settlements. 

10. Cyber Liability Insurance

Cyber liability insurance, also known as cybersecurity insurance, is designed to cover liability and property losses relating to the electronic transfer or sharing of data. This type of insurance is becoming increasingly important as more businesses are targeted by hackers and identity thieves online.

What risks does it protect against? Cybersecurity insurance can protect your business if any electronic or digital data is stolen or otherwise compromised.

What costs does it cover? This type of policy can provide liability protection related to lawsuits or cover the cost of upgrading or restoring cybersecurity systems.

How to Choose the Right Business Insurance Plan

Choosing the right business insurance is important because you don’t want to leave certain aspects of your business unprotected or overpay for coverage. Asking the right questions can help you better evaluate your needs.

Some of the most important questions to answer include:

• How many employees does the business have?
• Does the business have a physical location, or does it operate online only?
• Is there any business equipment that will need to be insured?
• What types of liability risks does the business face?
• Are there any vehicles that will need to be covered?
• What would happen if the business is interrupted by a natural disaster or another situation that’s beyond my control?
• Will I need insurance to cover special situations? For example, will it be necessary to buy key person insurance if I plan to sell or transfer the business to my heirs?

It’s also a good idea to weigh other factors when choosing insurance options. For example, you’ll likely need to think about how much liability coverage is appropriate or what type of premiums your business can afford to pay.

Also, consider what types of coverage may be required based on state law or the industry in which you operate. For example, individuals who work in financial services may be required to have professional liability insurance.

Joining a professional association in your field may allow you to unlock business insurance discounts.

How to Get Business Insurance

If you’re ready to purchase business insurance, it helps to know what to expect. The process isn’t that different from buying other types of insurance. Here’s how to buy business insurance, step by step.

1. Assess Your Business Risk

The types of risk factors that affect your business can determine which types of business insurance you might need.

For example, say that you run an HVAC repair business. You have 10 employees, eight of whom drive work vans to customers’ homes or businesses. In that case, it would make sense to have a commercial automobile policy in place to insure those vehicles.

What if you have no employees and run your business solo? You may not need an auto policy if you drive your own vehicle for work and are covered by personal car insurance. And workers’ compensation coverage may not be necessary, either.

Looking at your business through the lens of risk can help you narrow the types of insurance coverage that may be appropriate and what you can do without.

2. Understand What’s Covered

By now, you should be familiar with the different types of business insurance. When putting together a policy, it’s helpful to know two things:

• What’s covered
• What’s excluded

You don’t want to be taken by surprise if you need to file a claim , only to find out that there’s a gap in your coverage. Reviewing the details of a business insurance policy with the help of an agent or broker can help you pinpoint any potential holes in your plan that could leave your business vulnerable.

3. Compare Quotes for Business Insurance

Many companies offer business insurance, and all of them price their policies differently. The main pricing considerations for business insurance include what you’ll pay in premiums and what you’ll shell out for a deductible , should you need to file a claim.

Providing as much information as possible about your business, including the number of employees, annual revenue, and value of business property, can help you get the most accurate insurance quotes.

Getting one quote is a good start, but it’s helpful to have other quotes to compare it with. At a minimum, it may be a good idea to get at least three quotes for business insurance so you have a better idea of the price range you’re working with.

If you’re buying multiple policies to cover different things, get quotes for each. You may want to take quotes for individual policies and compare them with pricing for bundled business insurance to see if bundling might save you any money.

When do I need business insurance?

Generally, you need to have business insurance if you’re concerned about the possibility of financial losses stemming from liability claims or other events. If you don’t have the proper insurance in place, you could take a sizable financial hit if you’re sued for damages. Business insurance may also be necessary if it’s mandated by law in the state where you operate.

Should I buy stand-alone policies or a bundled business insurance package?

If you only need one or two types of business insurance, then it could make sense to choose stand-alone policies. On the other hand, if you’re looking for more comprehensive coverage, then you may benefit more from purchasing a business insurance package or bundle. Buying bundled insurance potentially could be more cost-effective if you’re able to get multiple policies at discounted rates.

What types of business insurance would I need if I work from home?

Working from home doesn’t negate the need to have business insurance. At a minimum, it may be advisable to have general liability insurance in place. You also may want to purchase insurance to cover any business property that you use while working from home if it’s essential to your business operations.

The Bottom Line

Business insurance can be invaluable if you find yourself in a worst-case scenario and need to file a claim. Taking time to compare the different types of business insurance can help you determine which policy or policies are best suited to your needs. Once you know what coverage you need, you can take the next step and compare quotes from the best small business insurance companies .

Insureon. “ Product Liability Insurance .”

North Carolina Department of Insurance. “ Types of Insurance for Your Business: General Liability .”

U.S. Small Business Administration. “ Get Business Insurance: Six Common Types of Business Insurance .”

IRMI (International Risk Management Institute). “ Business Income Coverage (BIC) .”

North Carolina Department of Insurance. “ Workers Compensation .”

IRMI (International Risk Management Institute). “ Employment Practices Liability Insurance (EPLI) .”

North Carolina Department of Insurance. “ Types of Insurance for Your Business: Automobile .”

North Carolina Department of Insurance. “ Types of Insurance for Your Business: Excess and Umbrella .”

North Carolina Department of Insurance. “ Emerging Coverages: Cyber Liability Insurance ,” select “What might a Cyber Liability Insurance Policy cover for a business?”

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Best overall: Blue Cross Blue Shield

Best for low-cost plan options: kaiser permanente, best for transparency: unitedhealthcare, best for customer service: humana, best for health expense funds: aetna (cvs health).

As a small-business owner, the decision to offer health insurance to your employees is a personal one. If you have fewer than 50 employees, you are not required by law to offer a group health insurance plan. But you may still want to consider it as a tool to hire and retain workers and to claim tax benefits for your business.

Choosing the right group health insurance plan for your employees depends on your budget and also factors like the number of employees you have, how old they are and where they live. You can purchase insurance through the federal government’s Small Business Health Options marketplace, directly from an insurance provider or using an insurance broker.

» MORE: How much does small business health insurance cost?

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Largest provider network in the country.

Limited plan details available online; must talk to a sales representative.

Why we like it: Blue Cross Blue Shield is an association of 35 locally operated insurance companies throughout the country. Together, the association provides access to 93% of doctors and 96% of hospitals nationwide. This means finding in-network doctors should not be a problem for your employees anywhere in the country.

Blue Cross Blue Shield provides a variety of plan options for your employees, including preferred provider organizations, health maintenance organizations and high-deductible health plans, as well as group dental and vision plans. The company ranks well in J.D. Power’s 2021 Commercial Member Health Plan Study, which measures member satisfaction. Blue Cross Blue Shield wins the top spot in eight U.S. regions.

For 2019, the average rating for Blue Cross Blue Shield plans on the National Committee for Quality Assurance website was 3.5 on a scale of 1 to 5. The NCQA rates plans on factors such as clinical quality and member satisfaction.

Low-cost HMO plans.

Small-business plan comparisons available online.

Available only in California, Colorado, Georgia, Hawaii, Maryland, Oregon, Virginia, Washington and Washington, D.C.

Why we like it: Kaiser Permanente is only available in a handful of states but it is well-rated in those regions, according to the J.D. Power study. Its average rating on the NCQA website is also high, at 4.3. Kaiser is best known for its HMO plans, which it offers at a low cost because patients are generally required to see providers within a small network. As a small-business owner, you can easily view the details of all of Kaiser's group offerings, including pricing information, on its website.

Comparison tool for small-business plans available online.

Available in all 50 states.

Does not rank in J.D. Power’s Commercial Member Health Plan Study of top insurers.

Why we like it: UnitedHealthcare is the largest insurance company in the country by market share; it works with more than 1.3 million physicians and care professionals, and 6,500 hospitals. Its small-business plan comparison tool makes it stand out from the competition. You can enter some basic information about your business and compare plan costs and features easily on UnitedHealthcare’s website. On average, the company’s NCQA rating is 3.4.

Plan details available online.

Smaller provider network than other insurers.

Why we like it: Humana is ranked well for customer service according to the J.D. Power study. The company’s customer service was also rated the best in the health insurance category of Newsweek’s annual Best Customer Service report two years in a row, for 2019 and 2020. On average, its plans had an NCQA rating of 3.4. Humana offers five types of plans geared toward small businesses and lists the features of each on its website.

Large network of providers.

Limited plan details available online.

Why we like it: Aetna has a comprehensive set of health expense funds that you can offer employees for pre-tax savings, such as health savings accounts and flexible savings accounts, as well as health and retirement reimbursement arrangements. (Note: Aetna’s HSA option is paired only with its high-deductible health plans.) Aetna ranks high on J.D. Power’s Commercial Member Health Plan Study and has an average NCQA rating of 3.3.

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Safety net home insurance plans are becoming the only option for many in disaster-prone states

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Paul Felber’s two-acre property in East San Diego County is lush and green after this year’s winter rainstorms.

The 72-year-old retiree doesn’t just maintain his yard. He’s trying to transform it.

“What I really wanted to focus on was trying to restore, as much as possible, a native plant community on this property,” he said.

There’s a certain zen ritual to it all. Yank out the non-native mustard and star thistle plants. Nurture the budding Penstemons and California lilacs.

And according to Felber, that’s not the only challenge with his property.

“I live in a high fire risk — in fact, I live in an extreme high fire risk area,” he said.

Felber and his wife have cut back much of the flammable vegetation bordering their home and spent more than $60,000 to harden it against wildfire. But home insurance companies weren’t impressed. In the last five years, the Felbers were dropped by two different companies.

“Nobody else was available to insure our property,” he said. “So I ended up on the California FAIR Plan.”

Their annual premium over the last several years increased from about $1,500 to $5,500.

It’s a familiar story in places threatened by climate-fueled disasters. Private insurance companies are retreating, leaving safety net insurance plans — often called “FAIR Plans” — to fill the gap.

In Florida and North Carolina, these last-resort plans have ballooned in recent years due to increasingly devastating storms and hurricanes. In California, where wildfires are getting more extreme, the number of FAIR Plan policies has tripled since 2018 to more than 375,000 .

“It’s been a tremendous increase in a very short period of time,” said Victoria Roach, president of California’s FAIR Plan, during a state Assembly hearing in March. Roach declined multiple interview requests.

“There’s not a lot of options out there for people,” she said at the hearing. “And so, instead, the FAIR Plan is quickly moving to be the first resort for a lot of people.”

California’s FAIR Plan is a state-mandated insurance pool run by private insurance providers that do business in the state. But it’s costly for homeowners and doesn’t provide comprehensive coverage. So the idea has always been to move people back into the traditional insurance market as quickly as possible.

Still, these days, many homeowners find themselves stuck on the safety net plan for years.

“The growing FAIR Plan is really what keeps me up at night,” said California Insurance Commissioner Ricardo Lara. “It puts the highest risk properties into one pool.”

That means a bad wildfire season could destroy many homes on the FAIR Plan, triggering an avalanche of costly payouts. And that could drain the plan’s financial reserves.

Lara said this scenario would further destabilize the state’s insurance market.

“Getting people off the FAIR Plan and back into a competitive market is one of my top goals,” he said.

Lara has proposed a plan that would require insurance companies to write more policies in fire-prone areas. Though there’s a tradeoff — the state would make it easier for those companies to raise rates.

Lara believes the reforms will bring more competition and predictability to California’s shaky insurance market.

But Felber, the retiree outside of San Diego, said he’ll believe the change when he sees it.

“It leaves me hanging out in the wind while, from my perspective, corporate America and government try to come to some agreement,” he said. “Which usually, in my experience, takes a long time.”

While he waits, Felber’s yard will keep him plenty busy. After all, the invasive cat’s ear plants this year have been especially stubborn.

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 How to Create a Business Plan for a Health Insurance Agency

Starting an insurance agency is a rewarding venture that demands meticulous planning and strategic foresight. One of the essential tools in this journey is a well-crafted business plan. A business plan not only guides your agency through its initial stages but also serves as a roadmap for growth and sustainability. In this blog post, we will explore why a business plan is crucial for an insurance agency and outline the key components that should be included in it.

Why is an Agency Business Plan Important?

Provides direction and focus.

A business plan is like a compass for your insurance agency. It defines your goals, outlines your strategies, and establishes the milestones you need to achieve. This direction helps you stay focused on what’s important, ensuring that every action you take aligns with your overall objectives.

Attracts Investors and Partners

If you’re looking to secure funding or attract business partners, a comprehensive business plan is indispensable. Investors want to see a clear and detailed plan that demonstrates the potential for profitability and growth. A well-prepared business plan shows that you’ve done your homework and are serious about your venture.

Identifies Potential Challenges

Every business faces challenges, and an insurance agency is no exception. A business plan helps you anticipate potential obstacles and devise strategies to overcome them. By thinking ahead, you can mitigate risks and navigate through tough times more effectively.

Sets Benchmarks and Metrics

A business plan establishes benchmarks and key performance indicators (KPIs) to measure your agency’s progress. These metrics allow you to track your performance, identify areas for improvement, and make informed decisions to drive growth.

Ensures Operational Efficiency

Detailed planning helps streamline your operations. By defining processes, roles, and responsibilities, a business plan ensures that your team operates efficiently and effectively, minimizing wasted time and resources.

What Should Be Included in the Business Plan for an Insurance Agency?

Creating a robust business plan involves several key components. Here’s a comprehensive guide to what should be included:

Executive Summary

The executive summary provides a snapshot of your agency. It should include your mission statement, business objectives, and an overview of your strategies. This section should be concise yet compelling to capture the interest of readers, especially potential investors.

Company Description

This section offers a detailed description of your insurance agency. Include information about your agency’s history, the types of insurance products you offer, the market you serve, and your unique selling propositions (USPs).

Market Analysis

Conduct a thorough market analysis to understand the landscape you’re operating in. Identify your target market, analyze your competitors, and outline market trends. This analysis should demonstrate your understanding of the market and justify the demand for your services.

Organization and Management Structure

Detail your agency’s organizational structure. Include information about the ownership, management team, and board of directors if applicable. Describe the roles and responsibilities of each team member and highlight their qualifications and experience.

Products and Services

Provide a detailed description of the insurance products and services your agency offers. Explain the benefits of each product, your pricing strategy, and any unique features that set your offerings apart from the competition.

Marketing and Sales Strategy

Outline your strategies for attracting and retaining clients. This should include your marketing plan, advertising strategies, sales tactics, and customer service approach. Define your brand positioning and explain how you plan to communicate your value proposition to your target market.

Operational Plan

The operational plan details the day-to-day operations of your agency. Include information about your business location, facilities, technology, and equipment. Describe your workflow processes, customer service protocols, and any other operational details critical to running your agency smoothly.

Financial Plan

A comprehensive financial plan is crucial. Include projections for revenue, expenses, and profitability. Provide a break-even analysis, cash flow statement, income statement, and balance sheet. This section should demonstrate the financial viability of your agency and provide a roadmap for achieving financial stability and growth.

Risk Management Plan

Identify potential risks to your business and outline strategies for mitigating them. This could include market risks, financial risks, operational risks, and compliance risks. A proactive approach to risk management is essential for long-term success.

Include any additional information that supports your business plan. This could be resumes of key team members, legal documents, detailed market research data, or technical specifications of your products.

A well-developed business plan is the cornerstone of a successful insurance agency. It provides direction, attracts investors, identifies challenges, sets benchmarks, and ensures operational efficiency. By including the essential components outlined above, you can create a comprehensive business plan that not only lays the foundation for your agency’s success but also positions it for sustainable growth in the competitive insurance market. Start planning today and pave the way for your insurance agency’s prosperous future.

• May 17, 2024
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 How to Write a Health Insurance Proposal

5 Benefits of Being a Part-Time Health Insurance Agent

Key Strategies for Hiring Top-Performing Insurance Agents

Strategies for Becoming a Top Producer in the Insurance Agency Sector

Your Most Frequently Asked Questions

We're here to answer any questions you have about your Health Net plan. If you have a question or concern that is not addressed here, please contact us. Many of your questions can be answered when you log in to your account online.

Choosing or Changing Doctors

Health Net HMO plan members have one main doctor called a Primary Care Physician (PCP). You choose your PCP before you make your payment. That way, your Health Net identification card will have the right doctor information. If you do not select a PCP, we will assign one who is close to where you live.

I already know the name of the Primary Care Physician (PCP) I would like

Log in to the Health Net member portal

• The first set of results in Provider Search will be Health Net plan doctors within a 10-mile radius of your home. Click the "Change Location" link to search a different or larger area.
• Search for the PCP you want by name or other Search Filter options
• Copy or note his or her Provider ID Number
• Go to your Profile
• Select PCP/Medical Group and follow the steps to make your choice.
• Verify your information is correct and click Submit .
• Select a PCP for yourself and for each family member you signed up

I would like to search for a Primary Care Physician

• You can filter your results by PCP in addition to selecting a specialty such as Pediatrics or Family Medicine. Click "More Options" again to filter by Gender or Languages spoken.

Doctor and Provider Network

How do i find out which providers (doctors, hospitals, etc.) are in my network.

• Log in to your member account with your user name and password.
• Click on the ProviderSearch link.
• Your region and plan information will already appear.
• urgent care and walk-in clinics,
• medical groups,
• other facilities, and
• ancillary services.

Medicare Supplement members: You may seek care for covered benefits from any provider that accepts Medicare.

Am I covered if I seek medical care outside the network?

HMO, EPO and Health service plan (HSP) members:

• You are only covered for health care services you get from inside the provider network.
• In a medical emergency, go straight to the nearest hospital – It does not have to be in your plan's provider network. If you are admitted to a hospital because of an injury or life-threatening medical emergency, you (or someone acting for you) should notify your PCP as soon as reasonably possible.

PPO members:

• With a PPO, you have the option of getting services "in" or "out" of your plan's network. Going outside of your plan's network may cost you more.
• emergency care,
• out-of-area urgent care, or
• out-of-area dialysis.

If you get routine care from out-of-network providers, neither Medicare nor Health Net will pay for the costs.

In a PPO plan, you can use doctors, hospitals and other health care providers that belong to your plan's network, or you can get care from an out-of-network Medicare provider. It may cost you more to go out-of-network.

Your Coverage Document will provide detailed information regarding your plan benefits. To view your Coverage Document on www.healthnet.com, you must be registered with our website.

Log in to view my plan documents

If you can't find this information, please contact us . We're happy to help!

If I've been assigned to a primary care physician (PCP) or medical group, how do I find this information?

You can view this information in one of two ways:

• It will appear on your Health Net member ID card.
• This information is also available on the Member site.

In order to view this information, you must be registered on our website . Once you are logged in, your physician/medical group information is viewable on the main page.

Please note: Not all plans require an assigned PCP or medical group.

How do I find the PCP or medical group for my spouse or dependents on my plan?

• You will see your member information. If you have access to other members on the policy, you can select their names from the drop-down list called "Viewing information for". The page will refresh with information for the member you selected.

How do I change my PCP for my HMO or HSP plan?

Here are some simple steps to take if you want to change your PCP:

• Go to ProviderSearch and select a new doctor, then click on View Details.
• Next, click on SET AS PCP.

You can also change your PCP from your member home page. You'll need your new doctor's ID number. After logging in to your member account:

• Go to our member home page,
• Click the pencil icon that appears next to MY DOCTOR information, then
• Enter your new doctor's ID number.

How do I find out which hospital(s) my medical group is affiliated with?

If you are a PPO member, you can get care at any hospital, in or out of network, although you will pay more for out-of-network care.

For HMO, EPO and HSP members:

• Click on ProviderSearch.
• Click on Change Provider Type below Doctor, and select Medical Group.
• Enter the name of the medical group in the search field. (Your plan information will already be filled in.)
• Click Search. The Medical group detail page will display.
• Scroll down to view this group's hospital affiliations.

How often are Health Net's online doctor and hospital directories updated?

ProviderSearch is our online directory of all contracted physicians, hospitals and facilities. While ProviderSearch is updated daily, we suggest you contact the doctor you wish to see to verify that they participate in our network and that they are accepting new patients.

Security and Registration

Where can i find my member id number.

This is also called your Subscriber ID number, and you can find it on your Health Net insurance card. When you register, please enter the complete ID number, including all letters and numbers.

You can also register if you do not know your ID number.

When I register, should I enter my own date of birth even if I'm not the primary subscriber?

Yes. If you are registering for a member account for yourself, you should enter your own date of birth.

What are the rules for choosing a password?

• Your password must be at least 6 characters long, but not longer than 15 characters.
• It must contain at least 1 letter and 1 number, and it must be different from your user name.
• Some special characters are supported, but not all.
• When logging in, please note that your password is case sensitive.

Why do I need a password security question?

If you forget your password, you will be asked to answer your password security question. We will then email you a temporary password so you can access the website and reset your password.

What if I can't answer my password security question?

If you cannot answer your security question, please contact us .

Are there any restrictions on who can and can't use the site?

If you enrolled in a Health Net plan through a state or federal health care marketplace such as Covered California™ or the Health Insurance Marketplace in Arizona:

• You must be 12 years or older to use this site.
• To log in or register for the Member site, you must be the primary subscriber or a dependent on a Health Net plan, or be the parent or guardian of a minor who is the primary subscriber on a Health Net plan.
• You may register and log in to the Member site once your initial payment has been processed. However, some site features are hidden until your plan is in effect.
• You may use the Member site for 18 months after your coverage ends.

For all other users:

• To log in or register for the Member site, you must be the primary subscriber or a dependent on a Health Net policy, or be the parent or guardian of a minor who is the primary subscriber on a Health Net plan.
• You may register and log in to the Member site beginning on the effective date of your plan and continue using the Member site for 18 months after your coverage ends.

Why do I need to choose a Sign-In Seal image?

A Sign-In Seal is a photo that displays on the authentic Health Net website. Look for it every time you log in from a new device or browser, or if you clear your browser's cookies. Using a Sign-In Seal will ensure you are not on a fraudulent phishing site and it is part of Health Net's commitment to your information security.

Manage My Account/Profile

How do i register for a member account on healthnet.com.

• Go to the Member Registration page .
• Complete the member registration form.
• Read and agree to the Terms of Use of this website.
• Click Register.

Things you should know before registering:

• You'll be asked for your Subscriber ID, but you can still register if you don't have it. Your Subscriber ID can be found on your Health Net insurance card. Please enter the complete ID number, including all letters and numbers.
• Your password and your password hint answer must be different.

How do I change my address?

• Select the Profile option at the top of the page.
• The system will display options to change your contact information.

If your benefits are through your employer, you may be asked to contact your benefits department or plan administrator.

How do I get access to view and update information for all enrolled members of the family?

As the primary subscriber, you and a spouse will have access to profile and plan information for all covered members under the age of 18. This includes the ability to update information, as well. All other enrolled family members will need to register, access the Profile option and select Share Plan Access to allow other adult members on the plan to view or make changes to their information.

Medicare Advantage and Medicare Supplement plans are individual plans, not family plans. So if you and a spouse are enrolled in the same Health Net plan, you will only have access to view and update information for your own account.

How do I change my primary care physician (PCP)?

Note: PPO, EPO and Medicare Supplement members are not required to select a PCP. Only HMO, HSP and CommunityCare members need to select a PCP of their choice.

In Arizona, HMO, HSP and CommunityCare members are not required to select a PCP.

• Go to ProviderSearch, select a new doctor, then click on View Details.

You can also change your PCP from your member home page. You'll need your new doctor's ID number.

• Go to the member home page.
• Click the pencil icon that appears next to MY DOCTOR information, then enter your new doctor's ID number.

How do I add or delete family members (newborns, adoptions)?

If you are enrolled in a Health Net Individual or Family plan through Covered California or your state's Health Insurance Marketplace, you may add or delete enrolled family members during your open enrollment period. In addition, we will generally accept enrollments for newly eligible members within 60 days after the following events:

• A subscriber's marriage or divorce.
• Death of a subscriber's spouse or dependent.
• The birth, adoption or placement for adoption or foster care of a child*.
• Loss of coverage by a subscriber's spouse.
• Permanent move.
• Enrollment errors.
• Violation of material provision of plan contract.
• Newly eligible/ineligible for advance payment of the premium tax credit or change in eligibility for cost-sharing reductions.

Please note: You must submit with proper documentation to Health Net.

If you are enrolled in an employer sponsored plan, please contact the employer's benefits department for instructions and an enrollment change form, otherwise please contact Health Net Member Services at the number on your ID card.

Medicare Advantage and Medicare Supplement plans are individual plans. If you or your spouse is eligible for Medicare, learn more or apply online for a Health Net Medicare Advantage or Medicare Supplement plan .

*In general, an eligible newborn child (or newly adopted child, or child in foster care) is covered for 31 days from his or her date of birth. To continue coverage beyond this initial period, a child must be enrolled within 31 days of birth or placement. Coverage will not begin until application and premium are received within 31 days after birth or placement. If enrollment of the additional dependent is in a higher premium bracket, an additional premium amount is required.

How do I get a new ID card?

• Select Order ID Card , or Print Temporary ID Card , from the My Health Plan page.

What if my email address changes?

• Click on the pencil icon next to your current email address.
• Enter your new email address.

How can I change my user name?

• Click on the pencil icon next to your current user name.
• Enter a new user name.

We suggest that you choose a user name that's easy for you to remember.

Plan Options and Coverage

How do i find out if a service or procedure is covered.

Check your coverage documents.

• Look for the Plan Overview column on the My Health Plan page.
• Select the option to View Documents next to the Coverage Document label.
• Selecting the linked text will open a PDF version of your coverage document.

If your coverage documents are not available, please call Member Service at the number on your ID card.

How do I get information on mental and behavioral health care programs?

Most Health Net plan members have access to mental and behavioral health care benefits through Health Net's Behavioral Health Services. Please see the back of your ID card or refer to your plan documents for your individual benefits.

How do I get information about alternative care, such as chiropractic, acupuncture or massage therapy?

Health Net offers a variety of alternative care benefit options, including discounts and coverage integrated with certain plans.

To find out if your plan includes alternative care coverage, please view your plan documents.

Some Health Net plans also offer Healthy Discounts giving members discounts on alternative care services. To explore these options, log in and visit the Wellness Center, or refer to your plan's Healthy Discounts brochure.

You can search for alternative care providers using our ProviderSearch tool.

How do I find my Explanation of Benefits (EOB)?

Note : We can only supply EOBs for claims processed at Health Net directly.

Please contact your medical group, Medicare, or your primary insurance carrier for assistance with acquiring EOBs for claims they have processed.

For claims processed by Health Net:

• Select My Plan Activity from the main navigation bar.
• Select Claims from the sub navigation menu.
• Search EOB from the list of available page options.

How do I file a medical claim?

To download and print a Claim Form:

• From My Plan Activity , under the Claims section, select Claim Forms .
• Select the appropriate claim form.

You will be asked to provide the bill and proof of payment. For full instructions, see the claim form.

How do I find the status of a claim?

• Select Claims .
• Select Claims History and view your claims information.

You can also select Search Explanation of Benefits (EOB) from the list of available page options to view your available EOB.

If you need help, you can also call our Member Services at the number on your ID card.

How do I find out about member discounts?

Some plans offer Healthy Discounts giving members discounts on fitness clubs, weight management, vision services, alternative care services, and more. To explore these offers,  log in  and visit the Wellness Center or your plan's Healthy Discounts brochure.

How do HMO, PPO, EPO, and HSP health plans work?

Health Maintenance Organization (HMO)

An HMO is a type of health coverage that offers health care services through a network of health care providers. A network is a set group of doctors, hospitals, clinics, labs, and pharmacies. You get care and choose a primary care physician (PCP) from your network. Your PCP will arrange your care and refer you to specialists in the network as needed.

In Arizona , HMO members are not required to select a PCP and may access an in-network specialist without a PCP referral.

An HMO is right for you if:

• You want your PCP to coordinate and oversee your care.
• You want less paper work for you.
• You want lower out-of-pocket costs.

Preferred Provider Organization (PPO)

A PPO is also a type of health coverage with a set network of health care providers. You can see providers outside of the network, but you may pay more. You can also go to a specialist without getting a referral.

A PPO is right for you if:

• You want the option to get services "in" or "out" of your plan's network.
• You prefer to go directly to a specialist when you need care.
• You want to manage your own health care without seeing your PCP first.

Exclusive Provider Organization (EPO)

An EPO is a type of health coverage that also has a network of health care providers. Like an HMO, you must use health care providers within your network. But you do not need to select a PCP or get a referral to see a specialist.

An EPO is right for you if:

• You want more choices of doctors and hospitals but do not want to pay the higher cost for a PPO.
• You want to see a specialist without a referral.

Health services plan (HSP)

With an HSP, you are required to select a primary care physician (PCP) for yourself and each covered member of your family, even though you may go directly to any participating provider without first seeing your PCP. You choose a PCP from Health Net's HSP provider network.

Except for emergency and urgently needed care, you have to use doctors and facilities, like labs, in Health Net's HSP network.

In Arizona , HSP members are not required to select a PCP and may access an in-network specialist without a PCP referral.

An HSP is right for you if:

Referral and Prior Authorization Process

Please note : This general information may not apply to all Health Net plan types. To learn more about your plan benefits, please review your plan documents.

What is a specialist, and how do I get specialist care?

A specialist is a doctor you see for certain types of health conditions. There are many types of specialists, including cardiologists, oncologists and orthopedic surgeons.

Some Health Net plans allow you to access specialists directly, while others may require your primary care physician (PCP) to give you a specialist referral. Check your plan document for details on how to get care from a specialist on your specific plan.

What is a referral, and why is it needed?

Typically, a referral is a request from your PCP for you to see a specialist. Depending on your plan, you may need a referral before you can see a specialist. Health Net may need to approve your referral before your specialist visit. This is called an "authorization."

Examples of referrals can be to an orthopedic surgeon for a back injury, or to a cardiologist for a heart condition.

What is prior authorization?

You may need to get approval from Health Net before you can get certain heath care services. This process is called getting "prior authorization." Prior Authorizations are commonly submitted by your provider on your behalf. It is less common for you to submit a prior authorization request yourself.

You can learn more about prior authorization in your plan coverage documents or by calling us.

How long does a Prior Authorization take?

Prior Authorizations have specific time limits that vary based on the type of plan you have and the care needed. Your doctor can submit your prior authorization to us the same day as your medical appointment but sometimes it takes them some time. If all the information is provided, you should get a decision between 5-14 business days. If additional information is needed then that timeline can be extended 14-45 more days. Once we determine if your prior authorization is approved or denied, we will notify you and your doctor in writing within 2 business days with the decision.

Why was my Prior Authorization denied?

The prior authorization decision letter you receive in the mail will include an explanation about why your prior authorization was denied. A prior authorization may be denied for a variety of reasons, such as insufficient information or lack of medical necessity. Please refer to your decision letter if your prior authorization was denied and work with your doctor or specialist about other care options.

Introduction to Progressive Life Insurance

Progressive life insurance plans available, progressive life insurance cost, progressive life insurance ratings.

• Progressive Life Insurance vs. The Competition 

Why You Should Trust Us: How We Reviewed Progressive Life Insurance

Progressive life insurance review 2024.

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

Progressive is known for its highly rated auto insurance and home insurance , but it also offers life insurance plans. Its life insurance plans are lesser known largely because Progressive doesn't underwrite most of its life insurance policies. Life insurance through Progressive means buying through eFinancial, an online insurance broker that connects you to a network of other popular providers.

Progressive only underwrites some of its term insurances in certain states, but most people won't be able to get a policy through them. Instead, you'll have to get a quote through eFinancial, which connects you to other life insurance companies. 

That said, your experience depends on the provider that underwrites your policy. These companies include FidelityLife, Protective, Mutual of Omaha, AIG, Prudential, and Transamerica. It's worth noting that  Progressive receives a commission for referrals. 

Term life insurance 

Progressive offers temporary coverage for 10, 15, 20, or 30-year terms, from $100,000 to $2,000,000. With term life insurance , you pay fixed premiums for the duration of the policy. If you passed away during your term, your insurer guarantees a death benefit or the proceeds of your policy to your beneficiaries. 

Progressive also advertises decreasing term life insurance. This policy's premiums and coverage amounts decrease as your financial needs and situation change. 

If you're interested in a term life policy from Progressive, you can get a free quote through their website. Progressive offers no medical condition insurance for qualified customers, but you'll be required to complete a health questionnaire.

Short-term life insurance

RAPIDecision Life One℠ , or short-term life insurance by Progressive, offers one year of coverage between $50,000 and $200,000 at a time. You can obtain a quote and buy coverage online. You'll have to take a basic health questionnaire, but there's no medical exam  required. 

Whole life insurance 

Whole life insurance is a type of permanent policy, so coverage lasts your entire life. With this policy, you pay fixed premiums for a guaranteed death benefit. Like all permanent policies, whole life builds tax-deferred cash value at a fixed rate.

To purchase whole life insurance, you can get a quote by filling out an online form on Progressive's website. An insurance agent will then contact you to request more information.

Final expense insurance 

Progressive's  final expense insurance , or burial insurance, covers end-of-life expenses such as funeral costs, health care bills, and legal expenses. These policies have no medical exam requirements, quick approvals, and affordable premiums. However, its coverage is lower than traditional policies at $5,000 to $35,000. You must request a quote by completing an online form, and an insurance agent will get back to you. 

Universal life insurance 

Universal life insurance is another type of permanent policy that builds cash value as long as you pay your premiums. The interest credited to your cash value is typically influenced by current money market rates, providing the potential to earn more or less depending on economic conditions. However, universal policies guarantee a minimum interest rate, reducing the risk of losing money on your policy.

A key feature of universal life insurance is its flexibility. You can adjust your premiums and death benefits based on your financial needs and situation.

If you're interested in this policy, request a quote by filling out the online form on their website. You'll hear back from an insurance agent for more information. 

Progressive life insurance riders

Progressive doesn't specify the types of riders it offers, but it provides a list of common riders . Additional coverages depend on the type of policy you buy and who underwrites your policy. 

Progressive term life insurance policies through eFinancial are more expensive than the industry average. According to Policygenius , the monthly cost of a $500,000 policy for a 30-year-old male in good health is $24, and the cost for a 30-year-old female is $19. 

However, your individual quotes will vary based on the type of life insurance you get, your age, health status, lifestyle, whether you're a smoker or non-smoker, and a host of other factors. 

We gathered quotes from Progressive for non-smoker applicants with good health purchasing a $500,000, 20-year term life policy. Take a look at the cost of term life insurance for applicants of different ages. 

Source: Progressive 

Progressive received an A+ (Superior) from AM Best, a credit rating agency, for financial stability. Its NAIC (National Association of Insurance Commissioners) complaint index score is 1.63, meaning it received more complaints than the industry average. 

However, since Progressive doesn't underwrite most of its policy, those ratings aren't overly important. Instead, you'll want to look at the specific ratings for eFinancial, its partnered insurance broker, and the actual company that underwrites your policy. 

eFinancial received a 4.7 out of five from Trustpilot. Users praised its easy purchasing process and helpful representatives. Others expressed frustration about receiving numerous calls after getting an insurance quote. 

These are the financial ratings for underwriters in eFinancial's network. 

Progressive Life Insurance vs. The Competition 

John hancock.

Unlike Progressive, which acts as an intermediary, John Hancock directly sells life insurance policies. Some of these plans include indexed and variable life insurance, which not all insurers offer. However, it doesn't advertise short-term policies like Progressive. 

This company offers competitive premiums to applicants over 50 and those with diabetes. It also earned an A+ (Superior) from AM Best. 

Read our John Hancock Life Insurance review here .

State Farm 

State Farm also directly sells its policies to shoppers. The company offers many term and whole life coverage options, specifically thriving in coverage for families. Several family-specific coverages include joint and survivorship insurance as well as a children's term rider . Again, it doesn't advertise short-term policies like Progressive.

Read our State Farm Life Insurance review here.

Progressive Life Insurance FAQs

Progressive doesn't underwrite most of its life insurance policies; rather, it partners with eFinancial to sell insurance. The quality of your life insurance policy depends on the insurer you buy coverage from. 

Progressive only underwrites flexible term life insurance in some states. You'll have to obtain a quote through eFinancial and purchase a policy from a company in its network. Those companies include FidelityLife, Protective, Mutual of Omaha, AIG, Prudential, and Transamerica. 

Progressive offers flexible term life insurance. It also advertises several term life, no medical exam, and permanent life policies, which you can purchase through efinancial. 

You can file a claim with Progressive through its mobile app or your online account. You can also call Progressive at 1-800-776-4737.

It depends on the type of policy. Traditional term and permanent life insurance require a medical exam. However, its final expense and its short-term policy don't. Be aware that those plans may come with limited coverage. 

Business Insider's personal finance team relies on various resources to craft insurance reviews, including ratings from third-party agencies like AM Best and JD Power, user-generated reviews, and resources offered through the company's website. From the research, we score the company based on its coverage options, reputation, availability, cost, exclusions and limitations, and more. We then evaluate the company to competitors in the industry to compare how the insurer stacks up in those categories.

If you'd like to learn more about how we review and rate products, read our life insurance rating methodology .

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

**Enrollment required.

• Main content

How to Choose a Health Insurance Plan for Your Small Business

A s a small business owner, you're no doubt aware that it's important to not only attract solid talent, but do what you can to retain talented employees. And a good way to do that is to make sure you're offering a nice benefits package. That package might include a retirement savings plan you help contribute to, paid vacation time, and health insurance.

Now, you should know that if you run a business with fewer than 50 full-time employees, you're technically not required to provide health insurance. But that doesn't mean you shouldn't.

Healthcare can be an astronomical expense in the absence of insurance. And even if you're willing to raise salaries in lieu of providing insurance, you may find that prospective employees are turned off by the prospect of having to go out and purchase health coverage themselves.

Of course, choosing a health plan for your business isn't exactly an easy thing to do. Here are some tips for navigating the process.

1. Decide how much you're willing and able to spend

Within the realm of small business health insurance, there's a range of plans. As you might imagine, costlier plans tend to offer superior coverage, while those that are less expensive don't offer as much to participants.

It's important to be realistic about how much you can afford to spend on health insurance. As a smaller operation, you can't benefit from the bulk rates a company with 12,000 employees might snag. So you'll need to take a look at your banking records and see what's realistic, keeping in mind that you'll likely be picking up a large share of those premium costs.

2. Figure out if you want a high-deductible insurance plan

High-deductible health insurance plans can be burdensome for participants -- especially those with family members who tend to get sick often. But the costs for these plans can be more reasonable, as plans with higher deductibles tend to come with lower premiums. That's something to keep in mind if you'll be covering those premiums at 100%.

Also, if you offer a high-deductible plan, it may allow you to offer a health savings account in conjunction with that plan. That could make it easier for your employees to cover their medical costs while reaping tax savings.

3. Consider partnering up with an insurance broker

As a small business owner, you may not be all that well-versed on health insurance options. But it's the job of an insurance broker to walk you through your options and do research on your behalf, so you can focus on running your business. Not only might an insurance broker help you find the right plan, but they can generally help you get set up so you don't find yourself lost in a sea of paperwork.

Whether a health insurance plan is something you're looking to offer because it's a requirement or because it's a benefit you want to provide, it's important to find the best plan for your company. Take your time in making that decision so you and your employees wind up happy with it.

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4 common policy types plus key insurance planning tips for families.

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Insurance provides a financial safety net for life’s challenges, ensuring peace of mind in times of uncertainty. To celebrate the International Day of Families, explore ways to safeguard your family’s future and create a lasting legacy of love and support with these insurance planning insights.

Common Types Of Insurance For Families

Life insurance.

This provides financial compensation to beneficiaries upon the policyholder’s death. Life insurance safeguards your family’s financial future by ensuring support for your dependents after your death. Several types cater to different needs and financial goals.

For example, term life insurance offers coverage for a specific period, like 10, 20, or 30 years. It is generally more affordable and is ideal for temporary needs such as raising children or paying off a mortgage. However, it does not build cash value and expires if you outlive the policy.

Whole life insurance, on the other hand, covers you for your entire life and includes a savings or investment component. This type is more costly but provides lasting security and financial flexibility.

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Another type is universal life insurance, which allows you to adjust premiums and benefits, combining permanent coverage with a savings element that grows based on interest rates. This flexibility can be crucial as your financial circumstances evolve.

Health Insurance

The right health insurance plan can significantly improve your access to necessary medical services and how you manage out-of-pocket costs. You can choose between individual and family plans depending on your healthcare needs.

Family plans are typically more comprehensive and cost-effective if multiple family members require regular medical attention. When selecting a plan type, you have options like Health Management Organizations (HMOs), which require choosing a primary care physician and getting referrals for specialists, or Preferred Provider Organizations (PPOs), which offer more flexibility in choosing providers but often come at a higher cost.

Understanding deductibles, copayments, and coinsurance is crucial as these determine how much you pay out of pocket for healthcare services before your insurance covers the costs. Lower premiums can mean higher deductibles and copays, so finding a balance that fits your financial situation is important.

Equally essential is preventative care, which includes routine check-ups, vaccinations, and screenings. These services can help you avoid more severe health issues down the line and are often covered without additional out-of-pocket costs under many health plans.

Selecting the optimal health insurance involves comparing these elements alongside the specific health needs of your family, ensuring that everyone’s health is safeguarded without straining your finances.

Disability Insurance

This insurance protects your income if you cannot work due to illness or injury. There are two main types based on the length of coverage: short-term disability insurance covers you for a few months, providing immediate financial relief after an incident, while long-term disability insurance offers coverage for an extended period, possibly until retirement.

When choosing disability insurance, it’s important to understand the coverage amounts and the elimination period—the time between the onset of a disability and when benefit payments begin. For example, a longer elimination period generally results in lower premiums but requires that you have sufficient savings to cover expenses until the benefits are paid out.

You should also note that policies vary in their definitions of disability. Some cover the inability to perform your specific job duties, while others only pay out if you are incapable of working at all. Consider your individual needs and risk exposure when selecting a policy.

Property Insurance

This protects your family’s physical assets. A common example is homeowners insurance, which safeguards your home and belongings against damage from fires, storms, burglaries, and other incidents. It typically includes liability coverage, which protects you against legal claims if someone is injured on your property.

Another example is auto insurance, which is mandatory in many areas and protects you from financial losses resulting from car accidents. It can cover repairs to your vehicle, responsibility for damage to others, and, optionally, medical expenses for injuries.

For all types of property insurance, it’s important to understand what your policy covers and what it excludes. Knowing your coverage limits and any applicable deductibles is also key, as these factors significantly affect your out-of-pocket costs after an incident.

How To Determine Coverage Needs

Identify potential risks.

These risks can vary widely but typically include scenarios such as premature death, illness or disability, significant property damage, or potential liability claims. Each of these events can have a profound impact on your family’s financial well-being.

For instance, the unexpected death of a breadwinner could leave your family struggling to meet everyday expenses, let alone future financial goals. Similarly, a severe illness or disability can lead to high medical costs and lost income, while substantial property damage or liability claims can drain your financial resources.

Understanding these risks is fundamental to crafting an insurance strategy that addresses your specific vulnerabilities.

Assess Financial Impact

This involves a detailed analysis of your family’s financial situation, including income sources, debt obligations, and future expenses such as education and retirement.

For example, considering income replacement needs is crucial if the family’s primary earner were to unexpectedly pass away or become disabled. How much income would be needed to sustain the household’s current lifestyle, and for how long?

Additionally, evaluating any debts and ongoing financial obligations, such as mortgages or car loans, is essential. Future expenses like college tuition and retirement savings need careful consideration to ensure that long-term goals can still be met in the face of challenges.

Assessing these areas helps you understand the financial stakes involved and guides you in selecting the appropriate levels and types of coverage.

Match Insurance Products To Needs

Finally, the information gleaned from identifying risks and assessing financial impact must be used to select the appropriate insurance products, balancing the cost of premiums against the breadth and depth of coverage.

Prioritizing essential coverage areas is key—life and health insurance are typically fundamental, but disability, property, and other liability coverage should not be overlooked.

Working with a financial advisor can be particularly helpful in this stage. They can provide expert guidance on the types of insurance products that would best suit your family’s needs and help develop a customized plan that considers both current and future financial scenarios.

This tailored approach ensures that your insurance portfolio is as effective and efficient as possible, providing confidence that your family is well-protected against life’s uncertainties.

Tips For Choosing The Right Insurance Company

Research insurance companies.

Start by investigating the financial strength and stability of potential insurance providers. An insurance company with a strong financial rating is more likely to be able to meet its obligations to policyholders, especially in paying out claims.

Agencies like A.M. Best, Moody’s, and Standard & Poor’s provide ratings that indicate an insurer’s financial health and claims-paying ability.

Customer service is another critical aspect. Responsive, courteous service can make the process of filing and settling claims smoother and less stressful.

Lastly, consider the flexibility and variety of policy options. A company that offers a range of insurance products and customizable features provides more opportunities to tailor coverage to fit your specific needs. This flexibility can be particularly valuable as your insurance needs evolve.

Compare Quotes And Coverage

Obtain quotes from multiple insurers to compare costs and coverage details. Use online comparison tools to streamline this process, but make sure to look beyond the price. Analyze the specifics of what’s covered, their limits, and any exclusions or conditions.

Consider working with an independent insurance agent who can offer a range of products from different insurers. These agents are not tied to one company and can provide unbiased advice based on your needs. They can also help you navigate complex policy details and fine print, ensuring you make an informed decision.

Read Reviews And Testimonials

Look for information from current and former customers to gauge their experiences with the insurance company, particularly in terms of customer service and claims handling. For example, websites like Consumer Reports, Trustpilot, and Better Business Bureau can offer insights into customer satisfaction and common issues.

Seek recommendations from friends, family, or professional contacts who have had direct experiences with insurance companies. Personal anecdotes can provide context that raw data and online reviews cannot, such as how the company treats its customers during stressful times.

Final Thoughts

Insurance protects your family from the financial strain of unexpected circumstances, ensuring that you can navigate life’s challenges with greater ease and security.

Remember to regularly review and update your policies to ensure that your coverages are aligned with your family’s circumstances. Consult expert financial advisors for tailored guidance.

By carefully selecting and managing your insurance coverage, you create a robust safety net that can help maintain your family’s lifestyle and aspirations, even when faced with adversity.

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Swiss Re to Withdraw From Digital Insurer iptiQ, Reports Strong Q1 Net Income of $1.1B

Swiss Re announced plans to withdraw from its digital B2B2C insurance business, iptiQ, following a strategic review.

The iptiQ business lost $250 million in 2023, but the loss was projected to be less in 2024. Nevertheless, Swiss Re decided its capital would be better used for its core activities, according to John Dacey, Swiss Re’s chief financial officer, during a media call to discuss the group’s first quarter results.

Options for iptiQ could include potential sales, managing the business tighter for those activities that are very close to breakeven, and putting into runoff those entities that are very far from breakeven, Dacey said.

Swiss Re reported Q1 net income of US$1.1 billion on revenue of US$11.7 billion, which Dacey described as “a strong start to the year.” (As Swiss Re is reporting under IFRS-17 accounting rules for the first time, its Q1 result is not comparable to Q1 2023, which was reported under US GAAP.)

The company’s insurance service result (which reflects the profitability of underwriting activities), amounted to $1.4 billion. In asset management, Swiss Re achieved a return on investment of 4% and a return on equity of 21.3%.

“All our main businesses contributed to this result reflecting our continued underwriting discipline, a strong return on investments and effective management of operating expenses,” he said.

Turning to the results for Swiss Re’s individual businesses, Dacey said, Property & Casualty Reinsurance (P&C Re) reported a net income of $552 million, insurance revenue of US$5.0 billion and “good results in the April 2024 renewals,” when rates rose by 12% on average.

P&C Re achieved an insurance service result of US$704 million and a combined ratio of 84.7% in the first quarter. P&C Re is targeting a combined ratio below 87% for the full year. (Combined ratios below 100% indicate an underwriting profit).

The P&C Re business had exposure to the Baltimore Bridge disaster, reporting a Q1 gross loss of approximately $100 million with a net loss, after some reinstatements on reinsurance premiums, of $77 million, Dacey said, noting that Swiss Re Corporate Solutions, the group’s commercial insurance arm, has no material exposure to the bridge collapse

Corporate Solutions reported Q1 net income of $194 million and a combined ratio of 89.9%. Corporate Solutions achieved an insurance service result of $213 million and a combined ratio of 89.9 for the first quarter while targeting a combined ratio below 93 for all of 2024, Dacey confirmed.

“The result was driven by continued disciplined underwriting, lower than expected manmade losses and a strong investment result,” Dacey said. “Insurance revenue for the first three months of 2024 was $1.8 billion, benefiting from good rate environments in most segments and new business growth.”

Rationale for iptiQ Withdrawal

Dacey then turned to the strategic rationale for withdrawing from iptiQ, its digital white-label platform.

“The reason for this decision is that the market environment now is vastly different from the one when iptiq was created,” he said, explaining that the uptake of demand for the capabilities of the iptiQ platform was lower than expected. A Swiss Re representative explained that iptiQ (which provides embedded insurance solutions primarily via its partners in the European P/C industry) runs different business models in different regions to address the specific client demands and market requirements in the respective countries.

“Given these changed conditions and the group’s strategic priorities, we, therefore, concluded that we are not the best owners going forward of this business,” said Dacey, adding that, while the iptiq business had lost $250 million in 2023, the loss was projected to be less for 2024.

He pointed out that the underlying opportunities for Swiss Re’s core businesses of large commercial insurance and reinsurance “have been much better than we might have thought seven, eight years ago.”

In that context, he said, the strategic move is about making sure that Swiss Re is able “to make the best of the investments that we’ve made in iptiq, while, at the same time, refocusing management attention and ultimately our capital on our core activities, [which] have a very bright future…”

Swiss Re will consider various options for the different iptiQ entities in a manner and timeframe that maximizes value for the group, subject to applicable regulatory approvals and notifications, the company said in a statement.

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