How to Write an Insurance Company Business Plan

How to Write an Insurance Company Business Plan and Template

The insurance agency industry has been growing moderately over the last several years, which has spurred the demand for insurance agency business plans, insurance business plan templates, and insurance agency pro forma financial projections.

There are numerous reasons for the sustained growth in the insurance industry.  Our insurance agency business plan writer has found that customers in this industry prefer personal customer service and community locations, which is one of the many strong points and competitive advantages for insurance agencies. 

Regardless of why the insurance agency industry is growing moderately yet sustainably, having a well-prepared insurance agency business plan is an excellent strategic move for local and regional competitors.  From this, our insurance agency business plan writer has come up with some tips and tricks for business owners seeking to write their own insurance agency business plan, business plan template, or pro forma financial projections (1/22).


Executive Summary for an Insurance Company Business Plan.

The executive summary section for an insurance company business plan should consist of summarized information from each section of the insurance business plan or template, especially from the company information section and financial projections segments.  However, based on our business plan writer's experiences, insurance company business owners tend to devote significant real estate to explore the insurance company's target market.  The reasoning for this is that the main component for success in an insurance company is marketing and sales.

Also, an insurance company executive summary business plan template should allow for easy modifications.  As an insurance company grows and expands, they all too often add products and services, additional employees, and expand service areas to include regional markets or even additional states.  Because of the fluctuation in growth inherent in the insurance industry, make sure that your executive summary structure allows for easy changes whether they be additional or even removing items (7/21).

Company Information and Location.

The company information and location section for an insurance company business plan should start by describing what type of insurance will be sold at the company.  Next, our business plan writer has found that insurance companies will then describe which insurance carriers they will offer products from.  In some instances, they will be aligned with a single insurance provider.  In other situations, they are more generalist and work with numerous major insurers.  Regardless of business structure, make sure to describe which business structure will be used and describe the benefits involved with this particular choice.

Need Help Writing an Insurance Agency Business Plan?

Call or Text Paul, Doctoral Candidate, MBA.



Hours of Operation: Monday through Friday 8 am to 9 pm EST.

Our business plan writer is located in Orlando, Fl.


Product Description  and Competitive Advantages

Some insurance companies specialize in automobile insurance.  Other insurers focus on health insurance.  Regardless of which specialty or specialties your insurance company will utilize, make sure to discuss it in your product description segment.  Also, make sure to touch upon why customers will purchase this type of insurance.  For example, if you sell automobile insurance, then the people are required by law to carry this type of insurance.  Once the product description section is complete, then explore the competitive advantages your organization may have over other insurers selling products in your area.

Target Market for an Insurance Company Business

The target market for an insurance company business is almost always geographical.  For example, most homeowners insurance companies will target homeowners within 15 or 20 miles of their office location.  By selecting geographic parameters, insurance company business owners are able to exploit broad dissemination marketing tactics such as mailers, social media advertising, and other popular forms of advertising that reach a large population effectively.

In some cases, an insurance agency may be niche market-specific.  An example of this would be when an insurance agency targets renters as compared to a more generalized insurance provider strategy.  In cases like this, then target marketing should be aligned with the niche insurance product.  To illustrate, insurance agents that provide motorcycle insurance almost exclusively may utilize DMV reports to compile a list of motorcycle owners in the region.  With this list, then specific mailers, cold calls, and other advertising forms may be utilized to best inform this niche market of your selected insurance products (2/22).  This is just one example of how a defined target market may be aligned with marketing.

Industry research for an Insurance Company Business Plan and Template

Insurance company industry research should first start at a national level.  Important components in a national-level insurance company research segment should include statistics, projections, and trends in the insurance company industry.  For example, the US insurance industry currently employs over 2.5 million people.  Further, premiums for the insurance industry in 2019 exceeded $1.3 trillion.  Finally, on a national basis, State Farm is the industry leader with approximately $65 billion in premiums for 2019.  Once your national-level industry research is complete, then explore local competitors and even examine demographic changes in your industry research section.

Owner and Management Section

The owner and management section of an insurance company business plan should start with exploring the business owner's professional and educational histories.  An example of this based on our business plan writer's experiences would be discussing the business owner's experiences in the insurance industry.  These experiences are often related to previous work histories.  Next, support previous work histories with educational accolades such as degrees, awards, and even affiliated organizations during your educational endeavors.  By following the structure, insurance company business owners are able to paint the picture of why they are well-suited to start an insurance company business.

Funding Request for an Insurance Company Business Plan

The funding request section for an insurance company business plan should follow a set structure to ensure a well-thought-out financial needs assessment.  First, her business plan writer and financial projection professional recommends that a potential insurance company business owner make a list of all the items the company will need.  Once this list is complete, then break out the items into different categories such as startup costs, equipment, office costs, and miscellaneous.  Finally, total up each category and add in working capital, which is monies needed to keep the doors open.  This should be the total funding needed to start your insurance company.  The final step is to subtract the amount of money you intend to invest in your business.  Now, you have the dollar amount needed for funding.  The only other action to do now is write up your funding request describing how this funding will be used based on the categories previously discussed.

Financials and Financial Projections for an Insurance Company Business Plan Template.

The financial projection section for an insurance company should start with monthly sales premiums.  Once this is done, then add renewal premiums to the mix.  This should give you your monthly revenues for the new or existing insurance company.  Once your monthly revenues are projected, then subtract your labor costs and other monthly fixed costs like rent, travel, and office supplies.  Now you have the first month's projected net profits.  The final step is to use growth rates and other financial strategies to determine your annual revenues, costs, and net profits.  Always keep in mind that once you are done with your financial projection section of the business plan, a summary should be provided in the executive summary section.  In the executive summary section, make sure to discuss first-year revenues, first-year net profits, anticipated net profits for the next five years, and as a bonus, maybe include a ratio of two such as return on equity.

Hopefully, these insightful tips and tricks for writing a business plan were helpful.  As always, if you need help with a business plan or financial projections, just send us an email or give us a call. 

Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Quality Business Plan, and Quality Business Consultant.

Date: 2/27/2022