business proposal for insurance agency

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 a 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

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.

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

Executive Summary

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

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.

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Competitive Analysis

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

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

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.

Insurance Business Plan FAQs

What is the easiest way to complete my insurance business plan.

Growthink's Ultimate Insurance Business Plan Template allows you to quickly and easily complete your Insurance Business Plan.

Where Can I Download an Insurance Business Plan PDF?

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

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

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

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1. Become a licensed insurance agent

2. write a business plan, 3. choose a business structure, 4. register and license your business, 5. get business insurance, 6. form relationships with insurance companies, 7. grow your client base.

Starting an insurance agency is a lot like starting any business . You’ll need to choose a business structure, register and license your business, get insurance and more.

But you’ll also need to become a licensed insurance agent and learn how to navigate a highly regulated field.

Here’s how to get started.

You can get an insurance agent license in a matter of weeks or months, depending on the requirements in your state. Here are the steps to follow:

Learn about your state’s licensing process. The National Insurance Producer Registry or your state’s branch of the Independent Insurance Agents and Brokers of America can help you understand those specific requirements.

Decide what type of insurance to sell. You can be licensed to sell several different “lines of authority” or types of insurance. The most extensive lines of authority include:

Accident and health or sickness.

The names of these lines of authority may differ in your state. You can be licensed to sell multiple lines of authority. Life and health are often offered as one package, as are property and casualty.

In general, most types of business insurance are property or casualty policies. With a property and casualty license, you can sell personal and commercial insurance . Most agents choose to specialize in one or the other, though.

Take a pre-licensing class. Your coursework should focus on the type of insurance you choose to specialize in. Courses can be done in person or online in most states.

Schedule your licensing exam. These are usually administered at testing centers run by third-party testing companies, which may immediately inform you of the results.

Apply for your license. Submit your licensing application to your state’s governing body. You’ll need to provide personal information, such as your Social Security number, date of birth and residency information, and pay any applicable fees. If your application is approved, you’ll be able to sell insurance products.

If you’re new to selling insurance, you may want to get some experience working for an insurance company or another brokerage before venturing out on your own.

Your business plan outlines what you want your business to look like and how you plan to get there. The process of writing it should force you to answer complex questions, like what unique value you’ll offer customers and how much money you’ll need to get started.

» MORE: NerdWallet's picks for the best business plan software

Your business structure determines how your business profits are taxed and how your personal and business assets are kept separate, among other things.

There’s also an insurance-specific question you’ll need to answer: Whether you want your insurance agency to work with one specific insurer or with many different providers.

Captive agents (agents who work with a particular insurance company) can benefit from brand recognition and don’t have to convince insurers to work with them. But, on the other hand, they can only sell a limited suite of insurance policies. For example, State Farm works with a network of independent contractor agents who run their agencies but only sell State Farm products.

Many other insurance agency owners are independent agents, selling products from multiple insurance companies. Independent agents might have to work harder to establish and market their brand to customers and insurers, but they can start relationships with many insurance providers.

Before running your business, you’ll need to register with your state, typically with the secretary of state’s office.

Most insurance businesses will probably need to apply for an employer identification number from the IRS. With an EIN, you can open a business checking account .

As part of this process, make sure to obtain a business license, a sales tax permit and any other documents your state or city requires.

Your business entity may also need a license from your state's insurance department. Check your state’s requirements to find out what you need.

» MORE: Everything you need to do to start a business

As an insurance agent, you already know how important it is for your customers to be fully insured. Get business insurance to protect your business assets.

Most insurance companies are likely to need professional liability insurance and general liability insurance . Depending on your agency’s size, location and day-to-day activities, you may also need commercial auto insurance, workers’ compensation insurance and other types of business insurance.

If you’re an independent agent, you’ll need to apply to work with any insurance companies whose products you want to sell. If they approve your application, they’ll grant you an appointment to sell their policies.

It can be challenging to start relationships with insurance companies directly without having several years of experience and a client base.

Joining a professional association, like the Independent Insurance Agents and Brokers of America, or an agent network like Smart Choice, can help you access insurance providers to sell their policies. These groups may also provide marketing materials, discounts on your business insurance policies, and other resources.

If you choose to start an independent agency, you may have to hustle for your first few clients. Start by joining your local Chamber of Commerce, attending networking events and advertising in your local market.

Having an online presence is essential, too. Make sure your website clearly outlines what kinds of insurance you sell and the customers you serve. Information about how to contact you should be easy to find.

If you start an agency affiliated with a particular insurance company, you might get referrals as customers seek out agents near them. However, you’ll probably need to do local marketing too.

On a similar note...

Insurance Business Plan Template

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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November 1979 - September 2023

Crafting a Winning Business Plan for Your Insurance Agency

Deanna deBara

Whether you have experience as a captive insurance agent or you’re an independent agent looking to branch away from working for others,  starting an insurance agency  might make sense as your next career move.

And now’s as good a time as any to start. In fact, broker and agency revenue  increased by 1.5% over the past five years —with growth expected to continue as the economy improves.

But with this growth and opportunity comes competition. The insurance industry is continuing to evolve, which means different companies—like those that use  insurtech  to blend insurance with technological innovations—are entering the fray and  competing for market share .

To give your new agency the edge over its competition and make sure your company is viable, you need a plan—an insurance agency business plan. Let’s look at why you need this document, what it should include, and other things to consider before you present your plan and launch your agency.

What Is a Business Plan—and Why Do You Need One?

A business plan is a document that outlines your approach to starting and running your agency. This document serves as a roadmap to follow at each stage of business growth, from your initial planning stages to achieving your  long-term goals . 

It can include information about how to structure and fund your agency, financial projections and goals, and guidance for how to run the agency as it evolves and grows.

There are a number of reasons you should consider creating a plan for your insurance agency, including:

• Help your agency succeed: About  20% of startups  fail within their first year. Though creating a business plan doesn’t guarantee your business will succeed, business owners who write out formal plans are  16% more likely to succeed  than entrepreneurs who wing it without one. Why? Planning helps you lay a solid foundation for your business, giving you a step-by-step guide for how to reach your goals.
• Secure funding: Many lenders require you to provide a plan for your business if you apply for a business loan or investment. The reason? A plan can reveal how viable your business is—including if you (and your leadership) are qualified to run a successful agency, what your  financial forecast  is for hitting different milestones, and what your overall objectives are for achieving success. In other words, lenders and investors want to know the likelihood of you paying off your debt and earning a profit—and, if so, how soon you’ll hit both milestones. A business plan helps them get a better idea of that likelihood—information they can use to determine if they want to lend to or invest in your business.
• Inform your decisions over time: A business plan for an insurance agency is a roadmap that defines your goals and objectives—as well as how to achieve them. But as your business grows, it’s easy to lose track of your long-term plans. Being able to refer to a document that details your plans can help you remain committed, even as your team—and agency—grows.

What To Include in Your Insurance Agency Plan 

Now that you know the importance of writing an insurance agency business plan, the next question is: what do you include in it? 

When it comes to creating a plan for your insurance agency, there aren’t any hard requirements. In fact, your plan can be in any format you’d like (including a “lean plan,” which focuses only on key elements)—though, if you’re looking for a bank loan or investment, your plan  should  be as detailed as possible.

Elements you might want to consider including in a  traditional business plan  for insurance agencies include:

Executive Summary

As its name implies, the executive summary is a brief overview of your plan. It should include general information about your insurance agency, though this information might change over time depending on how long your agency is operational. 

For example, a startup insurance agency might include a brief mention of market competition and its planned growth strategy. On the other hand, an established agency might summarize past achievements and include information about employees.

Items to include in your executive summary are:

• Your agency name
• Your mission statement
• A high-level overview of the products or services you offer or plan to offer
• Background on you  and your agency’s leadership team
• Information about your employees
• The location and market you operate or will operate in
• A brief description of your marketing plan
• Brief financial information and an overview of your growth plan, including projected costs (though you’ll expand on that later in the document)

Because your executive summary is a top-level overview of your insurance agency business plan, keep it concise and enticing. 

The idea is to encourage a reader to keep reading your business plan and learn more about your agency—especially if you’re looking for funding. 

In other words, the executive summary should be just that: a  summary  that introduces ideas you’ll expand upon later in your plan. Limit yourself to a couple of short, brief sentences for each idea and save specifics for dedicated sections of the document.

Company Description/Business Summary

The second element to include in your plan for an insurance agency is a detailed description of your company. This is your opportunity to expand upon some of the ideas you introduced in the executive summary. Here are some things to discuss:

• Legal structure of your agency: Your agency’s form of business, like a  sole proprietorship, limited liability company , partnership, or S-Corp. (Not sure which structure to choose? Make sure to read the next section.)
• Organizational chart: An organizational chart identifies your management team members and highlights their qualifications and expertise to determine who’s responsible for different aspects of running the agency. (You can attach resumes in an appendix to the business plan too).
• Target market: Who you plan to market to (such as individuals, businesses, or a mix of both).
• Business history: If your agency has already been established, what it’s achieved since it first opened.
• What sets you apart from the competition: For example, if you serve a wider (or more specific) target market or offer products other agencies don’t, or if you or your agents are uniquely qualified.
• SWOT analysis: A  SWOT analysis  identifies your core Strengths, Weaknesses, Opportunities, and Threats to give you (and your plan’s readers) an accurate and objective insight into your agency to inform future decisions, like investing in your agency startup.

What is the Best Business Structure for an Insurance Agency?

Many insurance agencies structure their business as a limited liability company (LLC), as it provides certain tax benefits and helps to protect their personal assets. 

That being said, the best structure for  your  business will depend on a variety of factors, including your goals, number of employees, and projected revenue. 

If you’re not sure how to structure your business, consider talking to a business lawyer and/or tax professional with experience in the insurance industry.

Product List

An effective insurance agency business plan should include a comprehensive list of the products and services it offers or plans to offer. Include the lines of insurance you’ll sell—like personal lines or  commercial lines —as well as the specific insurance policies you sell (or plan to), like  workers’ comp , life insurance or professional liability insurance.

And don’t skimp out on details. Mention the benefits of the insurance products you plan to offer, premiums and pricing, and your sales projections for each product. 

You should also include which insurance carriers your agency will represent—and which policies they’re responsible for underwriting. You might also want to provide a brief description of what  appointment  and representation means (or, in other words, which insurance carriers allow you to sell their products and represent their companies)—especially if you’ll be using your plan to secure funding for your agency since lenders might not be entirely familiar with the insurance industry.

Market Analysis

A major reason for creating a plan for your insurance agency is to prove that your business idea is viable. In other words, you need to demonstrate that there’s a demand for the products you offer—and that you have a competitive advantage that lets you capture enough market share to turn a profit.

And the place to do that? The market analysis section.

In this section, include detailed information about your agency’s target clients. Try to determine if there’s room for your agency. If not, look for underserved niches that you might be able to fill. At the same time, look at your market’s demographics to make sure your potential offerings meet their demands for insurance products.

For example, if you plan on selling commercial insurance, will you market specifically to construction companies and contractors or businesses in general? You might also want to limit your marketing efforts to small businesses that earn up to a certain revenue (like businesses with annual revenue between $1 million and $2.5 million).

You should also include a competitive analysis that identifies your key competitors, including their market share, target customers, and the specific products and services they offer. From there, explain how your marketing strategy will be competitive. 

For example, do you plan to  partner with an insurtech  company to attract leads and drive conversions?  Hourly  combines time tracking, payroll, and workers’ compensation insurance into one easy-to-use platform. Premiums are based on real-time payroll data, so your clients can say buh-bye to those nasty audit surprises.

Finally, include the demand for your proposed offers—and your sales strategy for how your insurance products meet the needs of your potential clients.

Financial Plan

How your agency earns money—and when you can expect it to turn a profit—is crucial for securing lending and making sure you have a stable cash flow. Your financial plan should include your:

• Projected costs: How much will it cost initially to open your agency, purchase office furniture and supplies, and hire and train agents? How much will your ongoing expenses (like rent, advertising, health insurance and other employee benefits, and salaries and commissions) cost?
• Estimated cash flow: How much money do you expect your agency to generate and spend over time—and how much of that revenue is profit?
• Break-even analysis: What is the sales forecast for how many policies you need to sell before you’ve covered the cost of opening and running your insurance agency? At what point does your agency become profitable?

Generally, your financial plan should cover at least three to five years. If your agency is already established, you should support your financial plan with  balance sheets , cash flow statements,  income statements , and other financial statements. 

If your agency is a startup, you should include detailed estimates and projections supported by industry or competitor data. 

Similarly, you might want to provide monthly or quarterly projections for your first year in business (vs. annual projections for the following years) to help explain and emphasize how viable your agency will be in its first year—as well as when you expect to break even or achieve profitability.

How Profitable are Insurance Agencies?

Insurance agencies may see a profit margin of about 10% or more, however that number can vary widely based on agency size, where you're located, what you sell, demand, and your efficiency.

Funding Request

If the purpose of your insurance agency business plan is to request funding, you need to specify how much cash you need—and what you need it  for . Start by outlining the type of funding you need—like a bank loan or investment funds—and how long you need the funding to last. You should also outline your preferred structure—like debt or equity—and any repayment terms.

Then nail down the details.  Create a budget  that stipulates how the money will be used. Make sure to also tie your request into your overall financial plan. Ideally, funding should sustain your agency until it meets its break-even point and a stable cash flow—and how you plan to do that should be clearly outlined in your business plan.

Insurance Agency Business Plan Template

Creating a business plan can seem complex at first, especially if you’ve never done it before. The good news? You don’t need to start from scratch. 

This customizable template can help you get started. Just use it as an outline, fill it in with details about your business, and voila! You’ve got your plan.

Easy-to-Use Outline

Text Copied to Clipboard

Agency name

Mission statement

Products and services

Management team background

Employee information

Location/market information

Brief marketing plan description

Brief financial information:

Projected costs

• Growth plan

Company Description

Legal structure

Organizational chart

• Target market

Business history

Competitive advantage(s)

SWOT analysis

Product #1: Description, price, sales projections

Product #2: Description, price, sales projections

Competitive analysis: Competitor #1

• Market share
• Products offered

Competitor #2

Marketing strategy

Product demand

Sales strategy

Estimated cash flow

Break-even analysis

Financial statements

• Balance sheet/projections
• Cash flow statement/projections
• Income statement/projections
• Other financial documentation

Amount of funding required

Reason(s) for funding

Type of funding requested

How long of a period funds needs to cover

Preferred funding structure

Repayment terms

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Other Things to Do When Creating Your Plan

Now that you understand the importance and benefits of a business plan for your insurance agency, let’s jump into a few things to keep in mind while creating your plan to ensure that it sets the stage for launching a successful insurance agency: 

• Define your brand identity: Your agency’s brand—its name, purpose, and values—helps it stand out from your competition and draw in new customers. Defining and committing to your agency’s identity helps you establish trustworthiness and reliability.
• Apply for licenses and permits: Small businesses are subject to local and state laws that might require you to obtain a business license, insurance coverage, and other types of licenses and permits. And because the insurance industry is so heavily regulated, check with your state’s  insurance department  to learn if you require any additional licenses or permits.
• Research potential funding options: When it comes to funding, there’s no one-size-fits-all. Compare and contrast different funding options—like self-funding, taking out a loan, looking for investors, or even crowdfunding—and choose what makes the most sense for your agency.
• Identify potential insurance companies to represent: Before you launch your agency, research potential insurance carrier partners to find those that align with your goals and values. Partner with insurance companies that offer the types of insurance products your ideal clients want—at the prices they’re willing to pay—and don’t dismiss the importance of exceptional customer service.

Tips for Presenting Your Business Plan

After you’ve drafted your business plan, the final step is to present it to interested lenders and investors. But how do you successfully present your plan for an insurance agency with confidence?

• Set up an in-person meeting: A face-to-face meeting helps humanize the people behind your plan—you and your management team. It also gives you a chance to establish and build credibility, field any questions, and demonstrate your excitement and passion for launching your new business. If meeting in person isn’t doable, set up a video conference to recreate the face-to-face experience.
• Use a clean, detailed, and professional layout: Your business plan should be legible, concise, and direct. Make sure it appears professional by proofreading it to correct any typos or misspellings. Include clear charts that support your claims and statements. Finally, make both digital and physical copies to distribute (and print extras—just in case!).
• Practice and rehearse your presentation: Come prepared to answer any questions that your business plan might not have covered or that a lender needs extra clarification about. That doesn’t mean you need to memorize your presentation word-for-word, but you should have a solid idea of your plan’s specifics and certain important details, like your break-even point or the amount of funding you’re requesting.

Plan to Set Yourself Up for Success 

Starting a small business is hard. And in the competitive insurance space, you need every competitive advantage you can get to set yourself up for success when launching an insurance agency. 

Writing an insurance agency business plan can help you outline—and commit to—your goals and objectives, giving you a clearly-defined path to success.

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Insurance Agency

Back to All Business Ideas

How to Start an Insurance Agency

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 25, 2022 Updated on November 10, 2023

Investment range

$2,850 - $6,500

Revenue potential

$60,000 - $300,000 p.a.

Time to build

Profit potential

$54,000 - $90,000 p.a.

Industry trend

Insurance protects the things we own and the people we love, which means it’s a massive industry — worth more than a trillion dollars in the US alone. If you’re an insurance agent, you’re already profiting from it and giving your clients peace of mind, but if you start your own insurance agency you’d have a broader impact, more control and higher income. 

But before you start writing policies, you’ll need to understand the business launch process. Luckily, this step-by-step guide has you covered with all the information you need to launch a lucrative insurance agency. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an insurance agency has pros and cons to consider before deciding if it’s right for you. 

• Good Money – Get healthy commissions on insurance premiums
• Flexibility – Run your business from home
• Provide Peace of Mind – Help people protect their possessions and family
• Crowded Market – The market is saturated with insurance agencies
• Continuing Education – To meet strict education and licensing requirements

Insurance industry trends

Industry size and growth.

• Industry size and past growth – The US insurance industry was worth over $1 trillion in 2020.(( https://www.statista.com/topics/3140/insurance-industry-in-the-us/#dossierKeyfigures )) 
• Growth forecast – The US insurance industry is expected to continue to grow for the next five years. 
• Number of businesses – In 2021, 1,225,407 finance and insurance businesses were operating in the US. 
• Number of people employed – In 2021, the US finance and insurance industry employed 7,509,253 people.(( https://www.ibisworld.com/united-states/market-research-reports/finance-and-insurance-sector/ ))

Trends and challenges

Trends in the insurance industry include:

• Tech-enabled data, including data about driving, is making insurance premiums more personalized.
• AI and automation technologies are enabling faster insurance claims processing.

Challenges in the insurance industry include:

• Insurance agencies are facing pressure to digitalize their business processes, creating the need for additional investment.
• The trend toward purchasing insurance online is decreasing revenues for independent agencies, which often lack the resources for e-commerce. 

Demand hotspots

• Most popular states – The most popular states for insurance agents are Vermont, Hawaii, and Ohio.(( https://www.zippia.com/insurance-agent-jobs/best-states/ )) 
• Least popular states – The least popular states for insurance agents are New Mexico, Idaho, and Georgia. 

What kind of people work in insurance?

• Gender –   48.4% of insurance agents are female, while 51.6% are male.(( https://www.zippia.com/insurance-agent-jobs/demographics/ ))
• Average level of education – The average insurance agent has a bachelor’s degree.
• Average age – The average insurance agent in the US is 45.9 years old.

How much does it cost to start an insurance agency business?

Startup costs for an insurance agency range from $2,800 to $6,500. Costs include a computer, a website, and a marketing budget. These numbers assume that you will start your agency from home.

You’ll need to be licensed in all types of insurance. Every state has its own education and licensing requirements, so check with your state’s licensing board.

How much can you earn from an insurance agency business?

Your income will depend on the type of insurance sold. You’ll earn a commission of about 15% of the annual premium. These calculations assume that your average customer will pay $2,000 per year on various types of insurance. Your profit margin will be high when you’re working by yourself, about 90%. 

In your first year or two, you could work from home and sell 200 policies per year, bringing in $60,000 in annual revenue. This would mean $54,000 in profit, assuming that 90% margin. As you start to get referrals, sales could climb to 1000 policies a year. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to around 30%. With annual revenue of $300,000, you’d make a healthy profit of $90,000.

What barriers to entry are there?

There are a few barriers to entry for an insurance agency. Your biggest challenges will be:

• Meeting the education and licensing requirements
• The massive competition in the insurance industry

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Step 2: hone your idea.

Now that you know what’s involved in starting an insurance agency, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research insurance agencies in your area to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing an independent insurance agency that sells errors and omissions (EO) insurance, or an agency that works with a certain insurance carrier. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as life insurance or homeowner’s insurance.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

Your best bet is to become licensed in all types of insurance so that you have more revenue potential. You can offer both personal and business insurance. 

How much should you charge for insurance?

Your prices will be dependent on the premiums that the insurance carriers quote for each client. Your commission will depend on the type of insurance, but will typically be about 15%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be consumers and businesses. You should spread out your marketing to include TikTok, Instagram, Facebook, and LinkedIn. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm an Insurance Company Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “insurance” or “insurance agency”, boosts SEO
• Name should allow for expansion, for ex: “Apex Insurance Solutions” over “AutoShield Insurance Agency” or “Sportsman’s Insurance Group”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create an Insurance Agency Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Provide a brief summary of your insurance agency’s mission to offer comprehensive insurance solutions and excellent customer service.
• Business Overview: Describe your insurance agency’s focus, whether it’s personal, commercial, or a mix, and emphasize the types of insurance you specialize in, like auto, home, life, or business insurance.
• Product and Services: Detail the insurance products you offer, including coverage options, policies, and any unique features or add-ons that set your agency apart.
• Market Analysis: Analyze the insurance market in your target area, including demographics, competitors, and the demand for insurance services.
• Competitive Analysis: Assess your competition in the insurance industry, highlighting their strengths and weaknesses, pricing strategies, and customer acquisition methods.
• Sales and Marketing: Explain your marketing strategies, which may involve partnerships with local businesses, digital marketing, or networking within the community.
• Management Team: Showcase the expertise and qualifications of your team, particularly in insurance sales, underwriting, claims processing, and customer relations.
• Operations Plan: Describe your agency’s daily operations, from client onboarding to policy administration and claims handling, ensuring efficiency and excellent service.
• Financial Plan: Provide financial projections, including startup costs, revenue forecasts, and profit margins, outlining your agency’s path to profitability.
• Appendix: Include additional documents such as insurance industry certifications, testimonials from satisfied clients, or case studies demonstrating successful insurance coverage.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to insurance agencies. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your insurance agency will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding an insurance agency business. 

Step 8: Apply for Insurance Business Licenses and Permits

Starting an insurance agency business requires obtaining a number of licenses and permits from local, state, and federal governments.

You’ll need an insurance broker’s license and various types of insurance agent licenses. Education and licensing requirements vary by state. You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your insurance agency business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as  Vertafore ,  EZLynx , or  Zywave , to manage your leads, sales, policies, invoicing, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like  WordPress ,  Wix , or  Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Some of your business will come from the casual online visitors, but you should still invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness. 

Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products: 

• Facebook: Great platform for paid advertising, allows you to target specific demographics, like men under age 50 in the Cleveland area. 
• Instagram: Same benefits as Facebook but with different target audiences.
• Website: SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Buy Now”. This can sharply increase purchases. 
• Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers.

Kickstart Marketing

Take advantage of your website, social media presence and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include:

• Flyering – Distribute flyers in your neighborhood and at industry events 
• In-Person Sales – Offer your insurance products to local businesses.
• Sponsor events – You can pay to be a sponsor at events that are relevant to your target market
• Email marketing/newsletter – Send regular emails to customers and prospects. Make them personal. 
• Start a blog – Start a blog and post regularly. Change up your content and share on multiple sites.
• Paid ads on social media – Choose sites that will reach your target market and do targeted ads.
• Pay – per-click marketing – Use Google AdWords to perform better in searches. Research your keywords first.
• Make a podcast – This allows you to make a personal connection with your customers
• Testimonials – Share customer testimonials about how your insurance products helped them

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your insurance agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your insurance agency business could be: 

• Protect your family long-term with life insurance and annuities
• A family-run agency for all your insurance needs 
• We’ll shop for the best insurance rates for you

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an insurance agency business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in insurance agencies for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in insurance. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an insurance agency business include:

• Licensed Insurance Agents – sell insurance policies
• Customer Service Representatives – answer calls, make appointments
• Receptionist – greet customers
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run an Insurance Business – Start Making Money!

In a trillion-dollar industry, a startup insurance agency has enormous potential. Almost everyone has some type of insurance, and most people and businesses have more than one type. If you’re a licensed insurance agent or want to become one, starting a thriving insurance agency is not too difficult if you have a passion for serving customers and addressing their needs. 

You’ve done your business homework now, so it’s time to get to work ensuring your future success!

• Insurance Agency Business FAQs

An insurance agency can be very profitable. You’ll just need to invest in some marketing and serve your customers well by finding them the best products and premiums and you can be successful.

You’ll need to be licensed in the type of insurance you want to sell. Every state has its own education and licensing requirements, so check with your state’s licensing board.

To differentiate your insurance agency from competitors in the market, you can specialize in a niche, provide personalized service, highlight unique offerings, leverage technology, and build strong relationships with clients.

Effective marketing strategies for promoting an insurance agency include targeted digital advertising, content marketing, referral programs, community involvement, and utilizing online reviews and testimonials.

To build a client base for your insurance agency, define your target market, develop a strong online presence, network and build relationships, offer incentives for new clients, and leverage existing contacts to spread the word about your agency.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm an Insurance Company Name
• Create an Insurance Agency Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Insurance Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run an Insurance Business - Start Making Money!

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April 20, 2020

How to create a business plan for your insurance agency, 12 min read.

Topic: Insurance Marketing Insurance Agency Management sales Start an Agency Grow an Agency

“What’s the plan?”

That’s the question my wife and I ask each other every day about 3:00 in the afternoon. We have pretty busy lives with multiple businesses, children, hobbies, and activities to manage. So, probably just like you, we need a plan to get it all done!

If a plan is important for getting a family through the day, how much more important is a plan for an insurance agency with customers to serve, sales to make, companies to satisfy, and employees to manage?

It’s critical.

But who has time to plan with all that going on?

That’s a great and valid question. The other one for the typical Type A insurance business owner is, “Can I get someone else to do it for me?” and, “What’s the minimum planning that will yield the most impact?” 

Assuming you have goals to meet and would like every day to be something other than crisis management, let’s take a look at this from a high level. 

Getting Started With Your Business Plan

Creating a business plan sounds like work, doesn’t it? It doesn’t have to be. Really, this process is as simple as putting on paper your three-to-five-year goals and general means to achieve them. 

For example, this is a super-simple plan template:

What are sales going to be each year for 3 years?

Net profits? What do you want your balance sheet to look like? 

What is your ideal business mix? What products and services do you want to sell the most of?

What kind of customers do you want to serve? What do they look like demographically (i.e. target market)?

How many employees does it take to get this done? 

A plan can be a whole lot more complicated, and potentially more valuable, but if you have lots to do, this takes a couple of minutes and it’s a great start.

Consider This Question To Help You Focus:

During lunch with a successful entrepreneur in a business completely unrelated to mine, he asked me this wonderful and powerful question during our meal.

“What are the best opportunities in front of you right now?”

That question really focuses the mind.

I was able to give him an immediate answer and listed for him four priorities for myself and my team. We have more than four opportunities in front of us, so I was interested in my own immediate reaction. You see, like most entrepreneurs and small business owners, I am constantly seeing opportunities and weighing my capabilities and interests.

I answered my friend with four things and a quick note as to why they were important and valuable for our business. It didn’t take a lengthy market analysis or sales forecasting - the question really helped me to focus, prioritize, and verbalize what I want to capitalize on out of many choices. It happened in an instant and will now guide us as we plan for the next year or two - this is the simplest version of an executive summary and it will guide our sales strategy.

Most successful business owners are highly focused people, who don’t pursue every single business idea that runs through their heads. They understand that resources like time, capital, and people are limited. Regardless of their relative level of optimism (an absolute requirement and one of the main keys to success opportunities, but the more successful they become, the more realistic actual opportunities are for them.

So, as they go about building a bigger and bigger future, choosing which opportunities to pursue every year of operation becomes an ever more important task.

As we face the future and the demands of many others who want us to focus on their priorities (opportunities!), choosing which things we will concentrate our efforts on becomes a critical decision for every insurance agent and businessperson.

What about you? What are the best opportunities in front of you right now? Those are the ones to focus your planning.

Let’s Do Some Thinking

Everyone, and every business, is different. I start planning for the next year in the fourth quarter of the year before. Your timing may be different than mine. But you do set aside time to think about the business and plan for the coming year, don’t you? Or do you just let it happen?

This is a great time to be honest with ourselves about this! Let me suggest that if you don’t do annual thinking that you consider it. It’s not hard. It doesn’t have to take a long time but is really important in sustaining growth .

Here are some of the things I think about.

What can we accomplish?

What is a revenue goal that is achievable within our current capabilities? As I think about this I ponder the knowns about what the market is doing and which insurance products are more likely to sell.

Are rates up or down? Has the weather this year been good or bad?

What can we expect from Profit Sharing and PMSF (you do get PMSF, don’t you?)

What kind of activity and results are our current marketing efforts producing? How is our market share?

What is going to happen to overhead next year? 

Do we have rent increases, automation increases, or other overhead cost increases coming?

What about employee benefits and payroll?

Do we need additional employees to manage the expected normal growth?

Do we have a place for them to work? Equipment to use?

When do we need them?

Now comes the fun part! 

What could we do if we really stretched ourselves? 

If we are to do that, what else must we do?

Do we need to increase marketing investment?

Are there any potential investors we should talk to?

Hire additional people? Modify compensation strategies?

Open another office or expand this one?

Add a CRM program?

These and endless other things can and should be considered.

We can’t develop a plan for our business until we spend time thinking about it. Perhaps you do this ad hoc from time to time, but now is the time to organize your thinking and your thoughts and start putting things in written form, even if it’s just a few paragraphs. It’s time to think!

Now, Let’s Do Some Planning

I’ve described the thinking process that I use during the early fall to begin to get ready for a productive, growing period in the coming year. The results of the current year are beginning to take shape and the business environment is more clearly understood. After the thinking process comes planning.

Relax! This doesn’t have to be, nor should it be, complicated or time-consuming for a growing agency. Let me encourage you to make a plan that can be put on one sheet of paper. Two at the most. 

If you can’t describe your plans for a year in that space you probably can’t do it all either.

How I Do It

What I do is take the things I’ve uncovered in my thinking process and first use them to create a simple budget:

I increase current year results by what I think is the “steady as she goes” growth and expected rate, profit sharing, PMSF and other revenue changes should produce and put that in a month by month spreadsheet.

Then I take the overhead thinking I’ve done and put that into the expense ledger. Now I’ve got a simple budget. Is the result of that budget what I want it to be based on my goal setting? Or not? If not, I begin to tweak.

Once the budget is all tweaked up I turn to the thinking about the growth goals I want. What does that do to income? What expense increases are required? Those go down on paper and I work on this until I’m satisfied.

This is still not planning! This is budgeting. Now comes the plan:

• What will be required to get the results we are forecasting? (See the next section!)
• When and how will we market ?
• What changes to our website, social media , phone program, referral program, etc. do we need to make?
• Do we need more employees , insurance companies, cell phones, or other tools? When and where do we plan to acquire them?
• What else do we need to schedule to do to make the budget work out?

This is planning! See, it’s not hard. It’s really easy when you think about it first!

Now that you’ve done the thinking and planning, next year will be easy. And if you execute on the simple plan you’ve built, tweaking as you go, you’ll get wherever it is you want to go!

More Things to Consider for Your Business Plan

How much activity do you need to get the results you want.

The “Silver Bullet” to agency growth is activity. One of the natural questions is how much? How much activity will it take to get x results? Really, the question is what do I need to do? What do I need to plan for? 

Great questions!

To answer your questions I need a little more information. So, here are my questions to you:

What is your growth goal?

What is your average sale?

What is your closing ratio?

How do you get prospects?

Let’s assume I want to add $25,000 in commission revenue to my agency (growth goal). And let’s assume my average sale nets me $450 (note: this is commission, not premium). 

Let’s also assume I’m an average salesperson and my closing ratio is 35%. Lastly, let’s assume I get my prospects from a direct mail campaign and my response rate is 1.5% of pieces mailed. 

From these assumptions “how much” becomes very clear. 

• I need 56 sales! ($25,000 goal divided by $450 average sale).
• I need 160 prospects! (56 sales divided by 35%).
• I need to mail 10,650 mail pieces (160 prospects divided by 1.5%)

Don’t get hung up on whether you think direct mail is the best way to advertise, or whether you think my closing ratio is good or bad. That’s not the point. The point is, if you know some very basic numbers, you can figure out very easily how much activity you need to reach your goal!

Everyone has a different idea about the best way to sell insurance. We all have different goals, talents, resources, and abilities. But we can all achieve our goals with the appropriate amount of activity. 

Success is simple. Figure out “how much”. Then go do it!

Pay the Business First

One of our Agency Development team recently met with one of our agencies to work with them on business planning. This is a great thing, because without a plan it is virtually impossible to grow rapidly. This particular agent is my favorite kind of person: a dreamer with big dreams! They are ambitious, hard-working, and highly motivated

In their discussions, the agent and our Development Specialist talked about the agent's desire to hire producers and to build their own office building. Both are potentially great ideas. However, there is a small problem: money.

Our agent owner didn't have any…

When we start our businesses, we entrepreneurs usually need every nickel we can find, right? Every dollar that isn't nailed down often finds its way into gasoline, rent, or shoes for the kids. This is normal. But as the business begins to prosper there is a choice to be made: buy nicer stuff, or feed the business.

We often see agencies with little or no working capital, and without working capital, you simply can't expand, because you can't fund a producer. What bank is going to lend you money on a building when you haven't got any? None. Those days are gone forever.

My partner and I started our agency in 1996, and we didn't take a profit out of the business - not even to pay taxes - until 2003! We were reinvesting all our money in the business.

This is what you must do if you want to keep growing. That doesn't mean you can't take money to improve your family's situation - you can. Do that by increasing your salary over time.

But if you want to keep growing, give the business a raise before you give yourself one. 

Our method was to decide each year what the business was going to make in net profits. Until that number was satisfied we didn't get paid and we didn't get a raise either. This method allowed the business to have the money - its lifeblood! - that it needed to keep expanding.

Look around at the successful people you know. The businesses you admire. Very few of them got where they are except by following this little principle:

Pay The Business First!

Make sure your hours match your business plan .

The world is changing. Technology is taking customers away from us. The new world demands a higher level of service and availability from anyone who wants to sell anything.

If, as an independent agent, personal service is the competitive advantage that will help you reach your goals, why aren’t you open more?

I was at the office on a Saturday morning, and I received a nice note from one of our new members about one of our great team members (thanks Natalie!). I fired off a quick “thank you” to the member and said, “Glad to see another entrepreneur working on a Saturday!”

What was interesting was his response, which I quote verbatim:

“Yep. Many can only come in on Saturday. Plus set up apt to sign two Travelers app issued via Access Plus. And doing an auto and home app for Safeco.”

Why was he working on a Saturday?

Because that was the only time prospects and customers can come to see him.

It seems obvious that anyone trying to sell anything would go where the customers are when they are there.

So, why are almost all insurance agencies only open Monday through Friday from 8:00 am to 5:00 pm? By now, even banks have figured out for a couple of decades now that they need to be open past 5 o’clock and be open on Saturday. 

Mom and Pop businesses all across America have wrung their hands while they went bankrupt when Walmart came to town. They complained they couldn’t compete on price.

I think it’s much more than that. They refused to compete on service. They weren’t there when the customer needed them.

When will insurance agencies get the message? Before for or after bankruptcy?

Build Your Business Plan for the Long Term

“you must prepare for the future if you want one.”.

Plant acorns.

Tyler Asher, President of Safeco Insurance Company, made this headline statement in a speech to an SIAA semi-annual meeting in Boston. His comment was made in the context of a list of things his company is working on to sustain their growth and prepare for a future insurance market, much different from today’s.

If you just take the statement at face value it makes a lot of sense, doesn’t it? Of course, we must all prepare for a bigger future if we want one, and oak is a great symbol of strength and stability. I was immediately captivated by the idea.

But, where the analogy breaks down for me is that it takes a long time to grow oak trees, and the future is coming upon us with breathtaking speed. Do we really have time to grow oak trees?

Then I thought again about a Jeff Bezos quote I wrote about where he says he is more concerned about what stays the same in the next 10 years than about what changes. 

I’ve decided that it’s the intersection of Asher and Bezos where we, as independent agency owners, need to focus.

For example, it’s estimated that 60% of the employees in our industry will retire in the next seven years, and if you believe “Outliers” author, Malcolm Gladwell, it takes at least five years (10,000 hours) to train an expert in anything. 

I believe, channeling Bezos, that customer service and person-to-person selling will be as important to agency success in the future as it is now. So, how are we going to replace the oak trees (people) in our industry fast enough to secure our future?

I don’t have an answer. But, it’s an incredibly important question for anyone who plans to continue to make this industry their career in the decade ahead.

In our organization, we are creating a streamlined training curriculum, coupled with third party courses and old fashioned apprenticeship, to meet our needs for new blood. Frankly, it’s expensive to do this. But the only other options are to hire other’s problems (which is getting harder and more expensive to do) or go out of business.

The need to invest in new people comes while commission compression and new competition (in the form of online sellers) are beginning to stress some agency income statements. As Tyler Asher points out, you must prepare for the future if you want one. 

Viewed in this way, spending on new employees is an investment, not a cost, and the promise of the future is a profitable business built for the long term.

Tony Caldwell

Tony Caldwell is a modern “renaissance man,” who is not only immensely successful in the field of insurance, but is also a writer, children’s advocate, mentor and even a licensed pilot. Always keen on helping others make their dreams come true, Tony and his team have helped independent agents grow into more than 250 independent agencies. This has made OAA the number one ranked Strategic Master Agency of SIAA for the last 5 years, and one of Oklahoma's 25 Best Companies to Work for. Tony loves to share his knowledge, insight and wisdom through his bestselling books as well as in free mediums including podcasts and blogs. Tony and his family are members of Crossings Community Church, and he is very active in community initiatives: he’s chairman of It’s My Community Initiative, Inc., a nonprofit working with disadvantaged people in Oklahoma City; and chairman of the Oklahoma Board of Juvenile Affairs., and he has served through many other organizations including the Salvation Army, Last Frontier Council of the Boy Scouts of America, and the Rotary Club. In his spare time, Tony enjoys time with his family. He’s also an active outdoorsman and instrument-rated commercial pilot.

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What Goes Into An Insurance Agency Business Plan

Posted on November 10, 2023 by Kelly Donahue Piro

Looking to understand what goes into an insurance agency business plan?

🎙️ New Podcast Episode Alert! 🎙️

📋 Episode Title: “What Goes Into An Insurance Agency Business Plan?”

Attention all forward-thinking insurance agency owners! 🚀 If you want to take your insurance business to new heights and achieve unprecedented success, this episode is tailor-made for you! Tune in as we delve into the intricacies of crafting a winning insurance agency business plan that will set the course for your agency’s growth and profitability.

In this enlightening episode, we bring you invaluable insights and expert tips from seasoned industry professionals who have navigated the ins and outs of the insurance landscape. Whether you’re an established agency owner looking to refine your strategy or an aspiring entrepreneur aiming to launch your own insurance venture, this episode is your ultimate guide to creating a roadmap for triumph in the insurance industry.

📝 What to Expect: – Understanding the Significance of a Solid Business Plan: Discover why a well-structured business plan is the bedrock of a thriving insurance agency, acting as a compass to steer your business toward prosperity.

📈 Elements of a Winning Business Plan: Learn about the key components that make up an effective insurance agency business plan, from market analysis and target demographics to competitive analysis and growth projections.

💼 Navigating Through Challenges: Gain valuable insights on anticipating and overcoming challenges that insurance agency owners commonly encounter, ensuring you stay ahead in the game.

🔍 Unveiling Opportunities: Explore untapped opportunities within the insurance sector that can give your agency a competitive edge and propel it to the forefront of the industry.

Whether you’re a newcomer or a seasoned player in the insurance arena, having a well-thought-out business plan is paramount to realizing your agency’s full potential. So, hit that subscribe button and join us for this eye-opening episode. Arm yourself with the knowledge and tools you need to build a flourishing insurance agency that stands the test of time!

🔔 Don’t forget to subscribe and hit the notification bell to stay updated on our latest episodes! Your success starts here! 🌟

🔔Check out the blog associated with this video: Insurance Agency Business Plan: How to Get Started

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Insurance Business Plan Template [Updated 2023]

Insurance Business Plan

If you want to start a successful insurance agency or expand your current insurance business, you need a business plan.

The following sample insurance business plan provides the key elements to include in a successful insurance agency business plan.

You can download our Insurance Agency Business Plan Template (including a full, customizable financial model) to your computer here.

Sample Insurance Agency Business Plan

Below are links to a sample of each of the key sections of a successful insurance agency business plan.

• Executive Summary – The Executive Summary of your insurance agency business plan should include a brief overview of your entire business plan touching on key points such as the insurance products you offer, your target market, and why customers should choose your insurance agency.
• Company Overview – This section should provide an in-depth overview of your insurance company, its history, legal structure, and the milestones you hope to achieve.
• Industry Analysis – In this section, you should describe the insurance industry and any major trends that might impact your insurance business.
• Customer Analysis – In the Customer Analysis section, you should include an analysis of the target customers you plan to serve including demographics and psychographics.
• Competitive Analysis – In this section, you should include information about your competitors, their strengths and weaknesses, and how your competitive advantage will put you above the competition.
• Marketing Plan – In the Marketing Plan section, you should include an overview of your marketing strategy and outline the channels you will use to reach and engage your target customers.
• Operations Plan – The Operations Plan section should provide an overview of the daily operations of your insurance business and outline any systems, processes, and procedures you have in place.
• Management Team – In the Management Team section, you should include information about each key team member and the experience they bring to the business.
• Financial Plan – The Financial Plan section should include a 3 to 5-year profit and loss statement, cash flow statement, balance sheet, breakeven analysis, and other financial projections to demonstrate the success of your agency.

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Insurance Business Plan Outline

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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 Proposal Template

Are you looking for a fully customizable proposal template to make your insurance business shine? We have exactly what you need! This template helped close deals worth over $30 million in 2022 alone. And the best part is, it is 100% editable.

What's in this insurance proposal template

Visually attractive cover.

As most insurance agents know, the key to grabbing a potential clients' attention is to make a great first impression. That's why the first thing a client sees when the insurance plan proposal lands in their inbox is a visually attractive cover. Our team carefully designed it to have everything you need to wow them the second they open an email. You can change everything from the text, logo, and background image to make it more appealing to your targeted market.

Pre-Written Introduction Section

How to explain to potential customers that what you're offering will be a perfect fit for their needs? Our introduction section is the best way to write a meeting summary and explain that your insurance company has precisely what they're looking for. This sample proposal consists of a pre-written introduction section that is already structured to fit every insurance company's needs. Just add a few specifics, and it's ready to be sent out! Like everything else, it's completely customizable, including the colors, text, images, and layout.

Processes and Timelines

Explaining the sales processes of insurance companies may sound complicated and overwhelming to someone out of the industry. Luckily, our Plan of action section is already made to fit the perfect amount of information. Add some details specific to your company, and it's good to go!

Case Study Example

The best way to introduce yourself as commercial insurance your client needs is through a case study. By sharing a success story you took part in, you will get a perfect opportunity to show you understand precisely what your partners' needs are. In this business insurance proposal template, we've set out an example case study. All you need to do is replace our example with one of yours and use the structure we've used.

Signing the right deals and getting the pricing right in the insurance industry is complex. Luckily, all you have to do using our automatically calculated pricing tables is put the numbers in, type a brief one-line description of the services included, and an essential form in your proposal is done! You can even offer discounts, create packages and have options up-sells, such as additional health insurance plans. Just click on the settings button and adjust it any way you like.

Next Steps with Digital Signing

Insurance agents often don't close deals because the conversation drops and gets lost in numerous emails. This proposal template is designed with a 'Next Steps' page, which you barely have to alter at all. Simply detail the next steps your client will go through and ask them to sign digitally by typing their name and clicking Accept. All digital signatures are 100% legal and compliant. When your client signs, the digital signature certificate will show up in your Better Proposals account.

Pre-Written Contract

Whether you're a seasoned professional or new to the business insurance world, Terms and Conditions will probably slip your mind when you're trying to close the deal with a client. To ensure you're still covered, we have added a fully customizable T&C at the end of this template. That said, they may not apply to your business, so we're suggesting getting a legal professional to read them over.

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Insurance Agency Business Plan Sample

DEC.22, 2016

Insurance Agency business plan for starting your own business

If you worry about how to start Insurance services, you must create a detailed Insurance agent business plan. It will not only guide you in the initial phases of your startup but will also help you later. Business plans for Insurance Agency are good instruments to assess the success of the business and track its progress. Insurance agencies require financial expertise and a highly accurate finance business plan . 

Since the insurance industry is classified as a due diligence service, you may be confused about how to start independent Insurance Agency. You can refer to this template set out for a firm called Lifelong Insurance for detailed guidance.

Executive Summary

Lifelong Insurance will be located in Texas. The business will provide life, health, travel, and vehicle insurance to its customers.  If you want to start this business but are confused about where to start, this Insurance Agency business plan template can act as your reference point.

2.1 The Business

As per this Insurance Agency business plan sample, Lifelong Insurance will be the newest and brightest independent Insurance Agency in Texas. It will be owned by Goerge and Martha Bell. They both have experience serving in the sector for 15 years. Lifelong Insurance was established in line with the following business continuity plan .

2.2 Management of Insurance Agency

The owners, Goerge, and Martha Bell are both Certified Financial Planners. They will hire certified and experienced employees to run the business. It is because matters related to insurance are of huge legal and financial importance and a lack of experience and knowledge can incur huge costs. In this business plan for Insurance company, we will provide a list of employees who will be hired to manage the operations of the agency. 

2.3 Customers of Insurance Agency

Irrespective of whether you are following an Insurance Agency business plan or thinking of starting a credit repair business , you need to know who your target audience is. Lifelong Insurance has the following customer groups as its target market:

• Aspiring Young Families
• Young Adults
• Exurbanites
• Local Businesses

2.4 Business Target

As per this sample business plan for Insurance Agency, the business target for Lifelong Insurance is to raise the bar in the insurance industry by providing excellence and utilizing the highest principles and standards in every aspect of the business. Lifelong Insurance wants to empower its clients, employees, and community while employing these practices.  

You may download this Insurance Agency business plan sample pdf from our official website.

Company Summary

3.1 company owner.

George Bell and Martha Bell came up with this new insurance agent business plan after working on it for months. It was despite their combined 15 years of experience in the industry.

3.2 Why the Insurance Agency is being started

The Bells were always interested in the insurance niche. Their education and experience turned them into excellent financial analysts. They also acquired legal expertise over 15 years. Therefore, as soon as they could manage the resources, they decided to start their own business.

George and Martha deserve credit for coming up with a unique Insurance Agency business model that prioritizes convenience.

3.3 How the Insurance Agency will be started 

The insurance agency can be started by following these steps ..

Step1: Become a licensed insurance agent

You can get an insurance agent license in a matter of weeks or months, depending on the requirements in your state. Since George and Martha introduced this business plan of an insurance company after almost two decades of experience in this sector, they already had a license. 

Step2: Write your business plan

Your business plan outlines what you want your business to look like and how you plan to get there. The process of writing it should force you to answer complex questions, like what unique value you’ll offer your customers and how much money you’ll need to get started. You can get this Insurance Agency business plan template free download to get an overview of how to write a plan for your firm.

Step3: Choose a business structure

Your business structure determines how your business profits are taxed and how your personal and business assets are kept separate, among other things. There’s also an insurance-specific question you’ll need to explore and that relates to if you want your Insurance Agency to work with one specific insurer or with many different providers. 

Step4: Form relationships with insurance companies

If you’re an independent agent, you’ll need to apply to work with insurance companies who you would represent. In the later sections of this insurance company business plan pdf, we will explain how establishing long-term relations with insurance companies can help you get more sales.

Step5: Grow your client base

If you choose to start an independent agency, you may have to hustle for your first few clients. Start by attending networking events and advertising in your local market. 

Download this free insurance business plan template to help get a head start on writing a personalized business plan.

Services of Insurance Agency

Different insurance agents offer different types of insurance schemes. Insurance business proposal offered by Lifelong Insurance provides a wide range of services to cater to a wide range of clients. Some of those are mentioned below:

• Life Insurance

We will offer life insurance to our clients by which we will pay a death benefit to the beneficiaries after the insurer’s death. The paid amount will be derived from the regular, premium payments.

In the market segmentation section of this life insurance business plan, we will explain who is expected to avail of this of our services.

• Reinsurance 

We will offer reinsurance services whereby we will transfer portions of risk portfolios to other parties by some form of agreement. This will help in reducing the likelihood of paying a large obligation resulting from an insurance claim. Such transfers are a little risky to handle and require attention from the business plan insurance broker. 

• Travel Insurance

The business plan for Lifelong Insurance also provides the service of travel insurance to its customers. Our travel insurance plans will cover medical emergencies, trip cancellation, trip interruption, delays, medical evacuation, and lost, damaged, or stolen luggage.

• Vehicle Insurance

Additionally, this  Insurance Agency sample business plan also offers vehicle insurance for  cars ,  trucks ,  motorcycles , and other road vehicles. Its primary use will be to provide financial protection against physical damage or bodily injury resulting from  traffic collisions . 

It is recommended that you read multiple insurance business plan templates like these to decide what services you want to offer.

Marketing Analysis of Insurance Agency

Great work.

Had the pleasure of working with Alex on a business plan for a new venture. The end result looks very professional. His communication is always prompt and he was very patient with my detailed requests. I would definitely work with this company in the future.

You must understand the market thoroughly before you step into it. It will help you understand the level of competition, potential untapped markets, pricing trends, and changing consumer preferences. You may go over different Insurance Agency business plan examples to get an overview of the current market trends.

5.1 Market Trends

The market size of insurance brokers and agencies in the United States reached almost $182 billion in 2020 and was expected to further increase in 2021. Hence, this is the right time to work on your insurance company business model and introduce it in the market. You can reach out to a marketing plan Insurance Agency to help you understand the changing marketing trends.

5.2 Marketing Segmentation

Common characteristics of a market segment include interests, lifestyle, age, gender, etc. It is essential to identify them to determine your target market. Every <sample> sample business plan for insurance company identifies different customer groups. In this marketing plan for insurance company pdf, Lifelong Insurance Agency specifies the following as its potential customers:

5.2.1 Aspiring Young Families

Young families have varying insurance needs. They need to avail themselves of life insurance policies, health insurance, and auto insurance. We will serve them in all these aspects. They will sign up for vehicle insurance as per this insurance sales business plan.

5.2.2 Young Adults 

Lifelong Insurance will target this group with its competitive auto insurance rates and insurance of technology gadgets such as smartphones and computers.  

5.2.3 Exurbanites

This target market will need help with life insurance and long-term care. This group is also expected to get their vehicles insured by us.

5.2.4 Local Businesses

Small businesses have a myriad of insurance needs. At Lifelong Insurance, our representatives will meet each business owner and individually determine their insurance needs.

5.3 Business Target

• Capture 30% of the market share within 1.5 years of operations.
• Maintain a CSAT score of more than 96 throughout the operational years.
• Negotiate with local businesses to expand our client base.
• Increase returns on interest by 15%.

5.4 Product Pricing

As per this business plan insurance company, Lifelong Insurance will keep its prices a bit higher than its competitors. It is because we have hired the most expert and competent employees. Moreover, we are providing several benefits as compared to our competitors.

Marketing Strategy of Insurance Agency 

No matter how better you are performing as compared to your competitors, you cannot manage to get more sales unless you advertise with compelling arguments. In your business plan, you must define a sales strategy by which you intend to reach out to more and more customers.

To get ideas, you can read the business plans for insurance agencies that are available to you. You can go through similar business plans such as a bookkeeping business plan to understand how an influencing yet unobtrusive sales strategy is developed.

6.1 Competitive Analysis

• As per this business plan for an independent Insurance Agency , Lifelong Insurance will strive to be the best and quickest insurance services provider . 
• Lifelong Insurance will go through clients’ requirements thoroughly before developing a customized insurance package for them.
• As mentioned in this sample business plan for Insurance Agency, we will hire people who are the most qualified, expert, and experienced for the post.
• We will build long-lasting relationships with our clients through constant communication. 

6.2 Sales Strategy

This insurance agent marketing plan template includes the following sales strategies:

• Utilize social media platforms and online web presence.
• Utilize customer ranking websites such as yelp.com.
• Request referrals from satisfied customers.
• Collaborate with local safety institutes.
• Arrange seminars to spread awareness about insurance packages.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

All the costs associated with human resources are accounted for in this business plan for an insurance agent.

7.1 Company Staff

Under this Insurance Agency business proposal, these positions will be hired for:

• 5 Bookkeepers
• 2 CFP Agents
• 1 Admin Manager
• 1 Customer Care Executive

7.2 Average Salary of Employees

Financial plan of insurance agency .

As per this business plan for Insurance Agency template, Lifelong Insurance’s idea is to increase the premium charges on its different services over time to have greater profit margins. This business target stems from the fact that a skilled workforce and a sustainable business cannot be established without monetary resources.

As per this business plan Insurance Agency, the Bells will take several initiatives to boost their sales. If you are entering this venture you must analyze the financial feasibility of your startup by drafting the expected cash flow diagrams, and calculating gross margins.

To see what you must include in your financial plan, you can refer to the Insurance Agency business plan samples available on our website. Moreover, you can also take help from the financial plan documented below.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios, tips on how to establish a successful insurance agency.

If you are taking a gander to initiate an insurance agency, it is necessary to do an intensive background research to get a good understanding of the insurance sector before getting your feet wet. For instance, before you start offering a particular policy, it is exigent to get to the ground and identify the desideratum of the target customers. It is also a requirement to have a strong business plan that you can employ to run and make decisions in the insurance agency. Check out the samples of insurance agency business plans posted online to know how to design yours.

Having a professional business tactics template will save you on time that you would have spent creating your plan of activities from scratch. If you fancy a customized plan, consider seeking professional insurance agency business plan writing services . As mentioned earlier, one of the bankroll remonstrances of scribbling a contrivance is the amount of time and research that is required. Luckily, there are many professional insurance writers, who operate offline as well as online who can help you write insurance agency business plan samples . The charge for this service might be high, but it is better to spend money on a quality service than scribble a mediocre contrivance that will spell doom for your firm.

Results of a SWOT Analysis

Notictious Insurance Agency is focusing on the identification of the multifarious strengths and weaknesses that could promote the organization or lead to its downfall. As a result, we sort the ministrations of a crackerjack business-consulting organization that did a comprehensive SWOT assay. The results of this analysis will succor tract the concourse for success.

Our team was actively convoluted in the analysis and worked with the counsels to warrant that their recommendations were accurate and in line with the goals.

We take the results of the assay very seriously, and we are committed to making sure that we bring into playing the proposed organization recommendations to the letter.

For any business to succeed in the surpassingly vying and digitalized current business world, it needs to identify its core strengths. Business strength is something that sells to the target customers. Our insurance concourse’s core strength is its workforce, which is our insurance faction. Since our inception, we have engaged a team of experts who are committed and determined to warrant that customers get quality services. We have positioned our insurance organization to inveigle millions of prospects who need insurance agency business plans from the first-day operations. We have also invested in a modern application or software that allows us to streamline our insurance concourses and get in touch with our insurance prospects at any time of the day and without spending a fortune.

As a new insurance concourse in the nation, we will desideratum to generate an effective plan to penetrate the market and succeed in getting customers. We understand the insurance sector is very competitive, but we are sure that we have what it takes to tussle in the business with the other insurance concourses that offer similar policies that we plan to offer.

Opportunities

There are unlimited business scopes for our insurance concourse in the market today. We are prime to make sure that we take ascendancy of all business opportunities that come our way and this will greatly help to warrant that we start and uphold to conceive lucre for decades if not centuries.

A weak and unpredictable mercantile is one of the primary threats that could hogtie the surge of our insurance concourse and the insurance business at large. Every business faces its divvy of presage in spite of the verity that it might have a robust system of tackling the demurs. This is the main reason why institutions and the insurance concourses that we plan to rival in the market carries out risk assessment studies regularly to warrant that the concourse is conscious of the business changes in the market.

Another business fulmination that we are keen on responding to as we progress is the establishment of similar insurance agencies in New York. It is our hope that when that happens, we will have invested in business teams that will generate unique and unrivaled policies, which will keep customers streaming into the company.

Needless to say, the many realistic, implementable and winning business strategies that we have been capable to create and establish as credible ways of interacting with customers will surely give us a higher cutting-edge in the market. By providing quality insurance services to our chumps, we will be capable to expand and surge the business fast and warrant that it continues to reign supreme.

It is also importunate to point out that just like any other business or venture entity; the unstable financial markets are a significant threat. Similarly, economic changes and downturns, climate calamities, as well as government policies that do not favor the institutions are ostensible to affect our insurance provision services, but we are prime to handle them all and warrant that the concourse remains profitable.

Payment Options

By payment options, we are referring to the various channels that our customers will use to pay for premiums that they select. Notictious Insurance Agency takes pride in that we have a solid plan created by our finance department. This plan makes sure the prompt receipt of payments without compromising the safety of our clients.

Below are some of the deposit choices that our customers will have to apply to make payments to us on a monthly or yearly basis.

• Deposit by via bank transfer
• Deposit through online bank transfer
• Deposit through check
• Deposit through bank draft
• Deposit with cash
• Deposit through mobile cash platforms

Culmination of the settlement choices listed above will be through credible and reliable banking platforms as well as organization systems to eliminate any errors from occurring.

Advertising and Promotion Strategy

Although our insurance intermediary is different from the others on the earth, we do plan to make sure that we use media stations to advertise it. We are conscious of the fact that most people make a decision to apply the services of a particular insurance agency business plan given their referrals and reputation. Therefore, we will sweat on creating a good credibility and reputation score in the market to contend with the auxiliary insurance companies.

During the promotion of our insurance products, we intend to leverage in both computerized and print media. Our research has shown us that using this medium will save us hundreds of dollars that we can invest in other activities that will further promote the augmentation of the insurance institution.

Here is a list of the primary platforms that we are going to be using to create a brand acquaintanceship of our insurance company and promote the insurance products to our customers.

• We will advertise our organization through countrywide television stations, gazettes, magazines, and AM-FM stations
• We will have our organization TV program that will be discussing the policies that we provide
• We also going to be actively involved in community-based programs
• We will employ social media networks such as Twitter and Facebook to advertise our insurance products and organization
• We will invest in quality billboards that will be installed around the city and in auxiliary areas of the nation that we intend to open the organization offices
• We will consummate road shows from time to time to showcase our insurance policies to our customers
• We will disseminate dodgers and pamphlets to our customers on a monthly basis
• We will expedite rudimentary letters to Diaspora institutions, consulates, and conglomerates to warrant that they too are cognizant of our insurance policies and hopefully they will take up a few
• We will invest in branded vehicles and also brand the commercial buses
• We will encourage our loyal customers to market our products to their peers, friends, and colleagues by offering incentives such as discounts.
• What is the easiest way to complete my insurance business plan?

The easiest way to come up with a business plan is to take one step at a time. Start with developing an executive summary, get an idea of what your company looks like, and take down the ways you can execute your idea. You can hire professional services to get a business plan for a financial advisor . If you know the field, you may also write your business plan after going through a sample business plan template for an Insurance Agency.

• Where can i download an insurance business plan pdf?  

There are multiple websites where you can find free PDFs for business plans. Whether you are looking for a  holding company business plan or an Insurance Agency sample business plan, you can find the samples by doing a little resear

Download Insurance Agency Business Plan Sample in pdf

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Insurance Agency Business Plan

Start your own insurance agency business plan

Quaestor Services

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.">.

Quaestor Services is in the process of being formed as a sole proprietorship owned and operated by Sheila Claflin. This plan is written as a guide for financing, start-up and management of this new business and will also serve as the basis for measurement. The following is a summary of the main points of this plan.

• The objectives of Quaestor are to generate a profit, grow at a challenging and manageable rate, and to be a good citizen in the community.
• The mission of Quaestor is to provide products and services with high quality, protection and value pricing.
• The keys to success for Quaestor are variety of business services and products, personal contact, timely and accurate service, development of one-to-one relationships, and a reputation of honesty and integrity. 
• The primary products offered will be from Whelnoan Insurance Company, and the added value to small businesses will be the accounting and financial services offered.
• The local market for this business is wide open. Whelnoan Insurance Company has captured 23% of the market share and is considered the second largest insurance company in Plainstate. 
• In the first year of operation, a customer base is being established. Over 85% of the new and established insurance business will renew each year creating compounding growth in sales of over 200% with limited increase in operational expense.

In conclusion, as shown in the highlights chart below, this plan projects rapid growth over the next three years with a profit forecasted in the second year of operation and continuing into future years of operation. Implementing this plan, will ensure that Quaestor Services becomes a profitable venture.

1.1 Objectives

The main objectives of Quaestor Services are:

• Profit – to create enough prosperity for the owner and employees to have a secure and comfortable lifestyle.
• Growth – to grow the business at a rate that is both challenging and manageable.
• Citizenship – to be a social asset to the community and contribute to others who are less fortunate.

1.2 Mission

Quaestor Services is dedicated to providing insurance products and business services that provide high quality, protection, and value pricing. We wish to establish a successful partnership with our clients that respects their interests and goals.

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.  

1.3 Keys to Success

The keys to the success for Quaestor Services are:

• A wide variety of business services and insurance products that are affordable, available and understandable.
• Personal contact and service that meets or exceeds the expectations of our clients.
• Services and products that are delivered with accuracy and timeliness.
• Relationships with our clients that fosters renewal business.
• A reputation in the community for it’s honesty and integrity.

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Top 50 Commercial Lines Agencies 2023

Produced by: Insurance Journal

Format: Special Report

Published: November 6, 2023

Topics: Commercial Lines

The 2023 Commercial Lines Leaders in this special feature are taken from Insurance Journal’s Top 100 Property/ Casualty Independent Agencies.

This list utilizes only the 2022 commercial lines property/casualty revenue numbers of the independent agencies and brokerages that submitted data to the Top 100 agencies report.

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