There are so many risks in the world around us that prudent people prefer to insure at least some of them. That is why the insurance business is quite developed in all countries. But it is also a highly competitive territory, that is, it itself experiences risks. In addition, this is a very expensive business, especially at the stage of opening a company. About 20 million rubles are required at the start, only for the authorized capital.

There are other conditions, which we will discuss below.

Main types of insurance services

Before considering the question of how to open an insurance company, let’s figure out what types of services such an organization can provide. There are quite a lot of them, the object of insurance is:

• property: housing, cars, furniture, jewelry, etc.;

• life and health, including during tourist trips, accidents at work and at home;

• specific, including political risks and problems with fulfilling financial obligations;

• responsibility; for example, an insurance company may compensate for the discrepancy between promises and results in the production of goods.

The profitability of the company directly depends on the number of services provided, so insurance organizations of a wide profile remain the winners.

But not all types of services are in wide demand. Let's name the most popular:

• Life insurance.

• Real estate insurance.

• OSAGO services.

• CASCO services.

• Health insurance.

The number of cars in the country is steadily growing, so it is no coincidence that the business of issuing OSAGO and CASCO policies is also expanding. But you need to know the specifics of the process, how to open an MTPL insurance company. In particular, this will require obtaining a license from the Federal Service for Financial Markets. This will cost future insurers 120,000 rubles.

How to open an insurance company: registration

Let’s say that the business organizers have an authorized capital of 20 million rubles, and they are aware of the risks and difficulties. What to do next? Prepare a number of documents:

• A document confirming the amount of authorized capital.

• A document confirming the registration of a legal entity. You can choose these forms of ownership: OJSC, CJSC, LLC.

• The approved charter of the organization, which describes all types of services provided: insurance itself, assessment and examination in the field of insurance.

• Receipt for payment of state duty.

• Business plan of the company.

• Documents of the general director: copies of passport and TIN; a copy of the work book; a copy of a diploma of higher specialized education.

These documents are required since the general director’s work experience in this field of activity must be at least 5 years. Higher specialized education is required. The absence of criminal records, arrests with the police and the presence of other offenses will also be checked.

How to open an insurance company based on all available papers? After completing all the above procedures, all that remains is to obtain a license from the Ministry of Finance. But we must remember that the process of verifying the data provided by applicants is quite lengthy: from 6 months to a year. only after this is a license issued and the company entered into the Unified State Register of Insurance Organizations. Then you can start working, open the office doors.

Selecting a room

It is important that it is convenient for potential clients to get to the company’s office. Therefore, you should purchase or rent premises closer to the center of the village. At first, a room of about 50 square meters will be enough. m. At the stage of formation, sometimes the company does not even have an office; agents go to clients’ homes or offices. But there must still be some minimum room for proper storage of documentation.

Then, when the process of adaptation to the market takes place, accumulation of a client base, when the company begins to receive its first profit, it will be possible to think about expanding the office space. It’s not bad to have a head office in the center of a city (village), with an area of ​​about 600 square meters. m. If the locality is large, then several additional offices are opened in different areas.

Make sure your office is properly decorated. It should be in a respectable business style. So that clients can immediately see: this is a serious company, worth doing business with.

We are recruiting staff

The personnel of any company determines its success. And here it is important that employees have an understanding of the work of the insurer. Ideally, you have received a higher education in this specialty or have worked in this field for at least several years.

How many employees to recruit depends on many factors, there can be 10 or 100 of them; at the initial stage, a minimum of personnel is recruited, and then, in the process of activity, this number of staff is optimized for the specifics of the business in a given region.

As for the level of wages, this issue is resolved by the company’s management, based on capabilities and understanding that employees need to be interested in the results of their work. The salary can be either clearly fixed according to the contract, or based on a certain percentage of sales.

Far-sighted managers combine these two types of payment. Let’s say an employee’s base salary is 7,000 rubles + 10% of sales. This will be a great motivation for employees. So that they don’t just “serve” working hours, but actually look for clients.

Branch or representative office

Many have already become convinced that opening your own insurance agency is a very troublesome and expensive business. But you can take a workaround: open a branch or office from a reputable and successful insurance company, concluding a cooperation agreement with it.

In this case, the main activity of the subsidiary will be consulting individuals and organizations on a wide range of insurance issues, as well as assistance in choosing the optimal insurance option. Earnings with this form of cooperation will be a percentage of sales. But an insurance agent can simultaneously represent several companies.

What needs to be done to conclude a contract:

1. Select the insurance companies whose interests you are going to represent.

2. Prepare a package of constituent documents.

3. Go through the stage of interview and filling out job applicant questionnaires.

5. Write a job application.

6. undergo a security check.

7. Select a package of insurance products.

8. Get policies.

The main task of such a partnership will be to establish a flow of clients, collect money and timely delivery of it to the partner company.

How to open an insurance company in franchise format?

There is another way to open an insurance business - through a franchise. This way you can avoid the lengthy process of obtaining a license and other bureaucratic procedures.

In such a partnership, the franchisor, the owner of a ready-made, promising business, and the franchisee, his new partner, enter into a relationship. At the beginning of cooperation, the franchisee acquires from the franchisor an information package about the general principles of the business and such details as a list of clients. the new partner receives the right to use the brand. That is, the franchisee receives a ready-made business at his disposal.

The main question: the cost of the franchise. It is tied to the popularity of the promoted brand, its location, and also depends on the range of services provided. The minimum cost of a franchise is 100,000-200,000 rubles with an average business payback period of one and a half years.

Features of forming a client base

Documents, fees, registration - this is all a solvable matter. But the main thing that creates success for this type of business is the size of the client base. If people do not go to the agency and do not draw up insurance contracts, then the company does not make a profit and may simply go bankrupt.

One of the main ways to attract customers is advertising. It is carried out in different forms: they create a company website where they talk about its advantages, and post reviews from grateful customers. conduct campaigns in social networks, in the media: both print and radio, television. You can print leaflets and distribute them in the immediate area, make a presentation when opening a new office, etc.

Today, many insurance companies do not rely on individual clients. and enter into contracts with successful enterprises and organizations. For example, with car dealerships, banks. The bank can be offered a percentage of sales when employees of the credit institution offer insurance to their clients when taking out a loan. Life and health insurance is making good progress in enterprises, other companies, and universities.

We draw up a business plan

• Authorized capital - 20,000,000 rubles;

• The fee for registering an LLC is 5,000 rubles:

• Rent of premises - 80,000 rubles per month;

• Advertising - 30,000 rubles;

• Purchase of furniture and equipment, consumables - 50,000 rubles;

• Other expenses - 20,000 rubles.

The following circumstance must be kept in mind: the authorized capital of at least 20 million rubles is only the lower limit. If a company plans to engage in life insurance, then the size of the authorized capital should be twice as large. It is difficult to save up such a huge amount. You will have to either take out a loan from a bank or attract investors.

But banks and other creditors will not invest money in a dubious enterprise. Therefore, it is extremely important to very clearly think through the business plan for the Ministry of Finance, including in it, in addition to the data already described above, other important details. Such as the main methods of attracting clients; the size of initial salaries and profits for the next 1-2 years. It must include a list of insurance companies with which contracts have been concluded, and other significant aspects of business organization.

What is the problem?

What difficulties do entrepreneurs who decide to open this type of business encounter? Two main reasons for failure:

• lack of funds for authorized capital;

• low demand for services as a result of the low solvency of the population.

So, before getting involved in this “fight”, it is better to carefully weigh your strengths, means, and the capabilities of the population, your potential clients. in any case, in order to avoid special risks, it is better to start by opening a representative office or branch of the company, or use the option of purchasing a franchise. And then, having gained experience and developed your own client base, you can think about creating a separate business.

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* The calculations use average data for Russia

Starting investments:

100,000 - 400,000 ₽

Insurance agent bonus:

Net profit:

50,000 - 150,000 ₽

Payback period:

Is it realistic to open your own insurance business and how much can you earn from it? We understand the basic concepts and formats, analyze the insurance market, and calculate investments.

The insurance market of the Russian Federation has been on the rise in recent years, this is especially noticeable against the backdrop of a series of crisis events that affect other areas of business in Russia. To enter this market, in our opinion, it is necessary to already have work experience and established clients in this area. Providing sufficient profitability, the insurance business will allow an entrepreneur to start his own business with minimal investment.

Basic concepts of insurance business

Insurance is a method of compensation for losses suffered by an individual or legal entity through their distribution among system participants. Both in business and in everyday life, risks of losses arise from time to time. These could be simple risks such as fire or accident. There may be more complex risks, such as liability for failure to perform a contract or the risk of unintentional harm. The occurrence of all these risks can cause serious financial damage to both legal entities and individuals. Insurance companies will help minimize losses from such risks.

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In short, insurance is a relationship between the insurer (the one who provides insurance services) and the policyholder (the one who insures their risks) to protect the interests of both individuals and legal entities in the event of insured events, that is, certain events that may lead to financial losses of the policyholder, at the expense of funds formed from the insurance premiums they pay. The insurance premium is the amount periodically paid by the policyholder to the insurer in accordance with the insurance contract. It is also called gross premium or insurance premium.

In simple terms, insurance companies collect premiums from policyholders, which over a given period amount to much less than the insurance compensation paid by the insurer when certain losses of the policyholder occur. However, since the insurance company collects premiums from many insurers, some of whom do not actually have risks, this difference between the collected insurance premiums from all insurers and the paid insurance compensations constitutes the income of the insurance company. In this regard, the amount of insurance premiums is carefully calculated based on statistical data on the possibility of an insured event, the number of policyholders and the amount of possible compensation for damage.

This is the main difficulty for the insurance company. If the insurance premium is very high, then it will be unprofitable for insurers to insure, they will prefer to bear the risks of financial damage if losses occur themselves, and the insurance company will not receive income. On the other hand, if the total insurance payments are less than the amount of insurance compensation, the insurance company will go bankrupt.

Additionally, in addition to the amount of insurance compensation, the insurance premium must cover the company's operating costs, provide a certain amount of profit and take into account deductions for the creation of insurance reserves. To accurately calculate and balance insurance payments and insurance compensation, complex mathematical formulas and techniques are used that are developed by each insurance company.

Analysis of the Russian insurance market

In terms of its efficiency, the insurance market can be called one of the most profitable areas of business in Russia. For example, in 2017, insurance companies received more than 1,278 billion rubles in insurance premiums, which is 8.3% higher than the amounts collected in 2016. As you can see, for the current situation in the Russian economy, which is in crisis, such growth rates are very respectable.

On the other hand, in 2017, insurance companies paid 509.7 billion rubles in insurance payments. Compared to 2016, payments increased by only 0.77%. This dynamics characterizes the faster growth rate of income of insurance companies than expenses. It is easy to calculate that insurance companies pay out less than 40% of the collected funds. There are not many industries in the Russian Federation that provide more than 60 percent marginality (that is, the ratio of income and direct expenses).

The growth rate of insurance premiums in the life insurance segment decreased slightly (53.7% in 2017, 66.3% in 2016), but in terms of premium growth, 2017 was a record year - almost 116 billion rubles. In fact, at present, life insurance is the main driver of the development of the insurance market.

Due to the long-term nature of life insurance, payments under these contracts have not yet entered the active phase, which ensures special profitability of the segment. It should be noted that the development of the life insurance segment mainly occurs through the banking channel and is focused on investment insurance, which is offered as an alternative to deposits. When receiving a loan, many banks include in the amount of bank interest a certain amount, which is used to insure the life of the client, thereby the bank, by insuring the life of the client, reduces its risks of non-payment of the loan in the event of his death. Of course, the loan recipient pays for all this.

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There are also illegal ways to attract clients to voluntary life insurance, which are nevertheless actively used by insurance companies. For example, some insurance companies sell compulsory motor liability insurance policies only when purchasing a life insurance policy. This is illegal, but in the regions this technique is actively used by insurance companies.

The main areas of insurance in the Russian Federation are: life insurance, ground transport insurance, aviation and space risks insurance, agricultural insurance, property insurance of legal entities, property insurance of citizens, voluntary liability insurance, compulsory liability insurance of owners of dangerous objects, compulsory carrier liability insurance, compulsory auto liability insurance. As you can see, the insurance market is quite wide.

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Currently, there are 246 insurance companies operating in Russia. The largest number of insurers are registered: in Moscow - 128, in St. Petersburg and the Republic of Tatarstan - 12 organizations each, in the Moscow region - 9, in the Samara region - 7, in the Khanty-Mansi Autonomous Okrug - 6.

The number of insurance companies decreased by 30 in 2017. While in previous years most license revocations were due to failure to comply with regulator regulations and forced revocation of licenses, in 2017 21 companies voluntarily gave up their licenses.

Thus, the general trend in the insurance market is characterized by an increase in its volume and profitability, but large companies are gradually squeezing out their smaller competitors from the market or absorbing them.

Types of insurance organizations: what business is realistic to open

There are three types of insurance business organization in Russia: insurance company, insurance broker and insurance agency. All these three types differ significantly from each other both in the financial model of the business and in the nature of the activity. Let's look at what their differences are.

An insurance company is a legal entity that provides services in the field of insurance and acts as an insurer. The insurance company assumes financial obligations to compensate for damage at the time of the insured event. An insurance company requires a license from the state insurance supervisory authority.

An insurance broker is an organization that provides services to the policyholder in choosing the best insurer and its specific insurance product, as well as assisting the policyholder in receiving insurance compensation. In essence, this is a consulting company in the insurance market, which receives remuneration not in the form of an insurance premium, like an insurance company, but in the form of a commission from the client himself. An insurance broker requires a license to operate. Additionally, the insurance broker assesses the insurer's risks, indicates which risks need to be insured, which company is best to do this with, and how to adjust the contract with the insurance company so that the policyholder is guaranteed to receive compensation in the event of an insured event.

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An insurance agent can be a legal entity or an individual who sells policies on behalf of an insurance company. Remuneration for the work of insurance agents is paid directly by the insurance company. An insurance agency does not require a license. Accordingly, all risks and financial responsibility to the policyholder are borne by the insurance company on whose behalf the insurance agent works.

The main documents regulating insurance activities in the Russian Federation are laws, regulations, standards, guidelines and other documents, of which there are more than 50. Without a qualified lawyer, there is no point in trying to understand this large volume of documents. But if you want to get a general idea of ​​the legal support for insurance activities, start by studying the Law of the Russian Federation of November 27, 1992 N 4015-1 (as amended on August 3, 2018) “On the organization of insurance business in the Russian Federation.”

Let us dwell on the most important point regarding starting an insurance business.

In July 2018, the State Duma of the Russian Federation adopted a law on increasing requirements for insurance organizations. This law provides for a gradual increase in the minimum authorized capital of insurance companies to 300 million rubles (previously 120 million rubles), for those engaged in life insurance to 450 million rubles (previously it was 240 million rubles), for those companies engaged in reinsurance, that is, when one the insurer insures the risks of another, up to 600 million rubles (previously it was 480). The minimum authorized capital of insurance companies providing compulsory health insurance must be 120 million rubles. Thus, the minimum investment in creating an insurance company will be at least 150 million rubles.

To create a company carrying out intermediary activities as an insurance broker, the company will have to provide a bank guarantee in the amount of at least 3 million rubles or documents confirming its own funds in a similar amount.

The law comes into force on January 1, 2019. But you should not try to open an insurance company earlier than this period with a smaller authorized capital, since from the moment this law comes into force, all participants in the insurance market will be required to increase their authorized capital. The requirements for increasing the authorized capital will come into force gradually over several years.

Thus, speaking about the insurance business, we can reasonably exclude organizations such as an insurance company from the list of companies possible for opening a business, since the requirements for opening one are very high and will become more stringent. We can only talk about a company operating as an insurance broker or insurance agent.

Insurance broker vs insurance agent – ​​which is more profitable?

There are about 70 insurance brokers in Russia. This is a very small number of companies for a country with a population of more than 140 million people.

As we wrote above, an insurance broker helps the insurer choose and obtain the best conditions on the insurance market for its insurance product. However, he also pays for the services of an insurance broker. Of course, the policyholder saves his own time on studying the entire market and the many offers on it, as well as searching for a truly reliable insurance company.

The remuneration for the services of an insurance broker is about 20% of the cost of the policy. This is quite a significant amount; the client is not always ready to make such expenses. In addition, the amount of the bank guarantee or the insurance broker’s own funds must be at least 3 million rubles.

Additionally, the existing requirement to use the new chart of accounts requires software costing about 1.2 million rubles, and another approximately 400 thousand rubles per year is required for its maintenance. And this is in addition to the costs of employee salaries, office maintenance and other business expenses. This situation leads to the fact that the number of insurance brokers decreases every year - many players in this market refuse licenses.

Of course, there are a number of companies that call themselves insurance brokers, but no more than 5% of them have a license for brokerage activities, that is, only these 5% operate legally.

As for insurance agencies, there are practically no requirements for their work; their activities are regulated by the insurance companies on whose behalf they work. You can register a limited liability company and work as an individual entrepreneur. There are no requirements for authorized capital or special forms of accounting. The only difficulty is the need to pass an interview with the insurance company for which you want to be an agent. It is necessary to demonstrate both knowledge of the insurance market and an established client base. Of course, preference is given to agents who already have experience working in insurance companies.

So, we conclude that currently in the Russian Federation, organizing the activities of an insurance broker is a very costly and complex matter. If we are talking about a small business, then it is necessary to open an insurance agency.

Insurance agency income and expenses

The activity of an insurance agency is working with people. Essentially, an insurance agency is a company that employs several insurance agents.

As we wrote above, opening an insurance agency is a business for professionals. It is suitable for those who have worked as an insurance agent on the company staff for some time. And if you are such a professional, then business will be up to you. It is advisable to start opening an insurance agency with one person. This makes it easier to see the insurance business and its prospects from the inside without any special investments.

At the first stage, to open such a business, it is better to open an individual entrepreneur. At first, you can do without an office altogether. All you need is a computer, a printer with a scanner and a workspace. That is, the minimum investment to open such a business will be about 50 thousand rubles.

The main OKVED code should be 66.29.9 “Other auxiliary activities in the field of insurance, except for compulsory social insurance.”

If you already have sufficient work experience and know the business, then you can open a company with three or four insurance agents. The cost of opening a company with three working insurance agents will be about 150 thousand rubles. The requirements for an office, in this case, are minimal, so you can choose a small ready-made room, preferably with furniture and not in need of renovation. There are enough such premises on the commercial real estate market in any region.

Of course, such an insurance agency will not immediately break even, like any business. But the salary of an insurance agent, as a rule, consists mainly of the bonus part, the salary part is minimal. Therefore, for a three-person agency, you will need to set aside a small revolving fund to pay office rent, a small portion of employee salaries, and other operating expenses such as communications and office supplies. Thus, to open a small insurance agency you will need about 400 thousand rubles.

Of course, you can get by with a much smaller amount, but in such a business it is advisable to have a small reserve of finances to ensure the operation of the company, which is necessary to develop regular customers and work out business processes. The minimum investment amount, in our opinion, can be 100 thousand rubles.

The insurance business is successful when the insurance agents are professionals. The average insurance agent premium is about 10-30% of the policy cost, depending on the type of insurance product. As a business owner, you keep a portion of what the insurance agent earns and that is income for your business.

Most often you will have to sell insurance products in the following areas:

OSAGO and CASCO;

life and health insurance;

property insurance for individuals and legal entities;

business insurance.

If you have three qualified insurance agents, your company’s profit will be about 50-70 thousand rubles per month at the initial stage. Then everything depends on how successful the sales will be. In case of successful sales, your company’s profit can increase, with the specified number of employees, up to 100 - 150 thousand rubles. If things go well, the staff of agents can be expanded to 10-15 people.

As a rule, the payback period for investments when opening an insurance agency is from 3 months to six months.

Marketing and promotion of an insurance agency

First of all, you need to understand your potential client. Study his motives, income, determine what insurance products the client needs in the first place.

The basis for success in the insurance business is personal contact with the client. Therefore, the personal qualities of insurance agents come first. Communication skills, excellent knowledge of insurance products, and presentable appearance of agents are the basis for success. The basics of sales technology, working with objections and knowledge of the basics of psychology are mandatory for an insurance agent.

It is necessary to make a good and understandable website with the products of your insurance agency. Promotion on social networks can also significantly increase the number of your customers.

More than 80% of information about the agency should be of an image nature and aimed at creating a positive view of your agency from the point of view of buyers of insurance services.

Franchise insurance agency

Purchasing an insurance agency franchise allows you to reduce the risks of starting a business. You receive the right to work on behalf of a well-known brand, a certain flow of clients sent directly by the franchise owner, a set of training courses for agents and business process regulations. In some cases, you will be provided with legal and accounting support for your business.

The cost of purchasing such a franchise is from 50 thousand rubles. The required investments in opening a franchise insurance agency range from 120 thousand rubles. Royalty starts from the amount of 8 thousand rubles.

Additionally, the franchise owner can provide the following services:

The insurance business today is quite profitable even despite the fact that competition in this market is quite high.

That is why it makes sense to open your own insurance agency and earn a lot of income.

One possible option is to open a branch of an existing foreign agency. It is worth noting that this method can provide even greater profits than opening your own insurance company. However, such a business requires obtaining a license and large financial investments.

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Which type of insurance is better to choose?

Today there are quite a large number of types of insurance, including life insurance, property insurance, bank deposits, and so on. You need to choose what types of insurance you want to deal with.

It is recommended not to focus on any one type; you can offer your clients the maximum number of different services. In addition to providing insurance, you can have additional income from conducting various types of examinations. In addition to the possibility of additional income, this will also expand the range of services provided. It is worth knowing, since the initial investment is quite large, that this is completely justified.

Businessmen who are thinking about opening an insurance brokerage agency should know that starting this type of business may require up to $500,000. This is due to the presence of some issues that require a large amount of money. The payback period can be 3-4 years, but more on that later.

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What is needed to open an insurance agency?

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Insurance business registration

To open an insurance company, you must register a legal entity. Regarding the form of ownership, there are several possible options:

• limited liability company;
• open or closed joint stock company.

If we talk about what types of activities need to be indicated, the answer is simple: all those that contain the word “insurance”. If expert activities are carried out and all sorts of examinations are carried out, a necessary condition for these services must be a direct connection of all examinations with insurance, and at the same time have an appropriate name.

You need to decide from the very beginning whether the agency will provide life insurance services. It is important to know that in order to provide this service, the authorized capital of the organization must be at least 20,000,000 rubles.

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Obtaining the necessary license to be insured

In order to obtain a license, you must contact the Ministry of Finance and submit a package of documents, which consists of:

• constituent documents of the organization;
• business plan;
• insurance rules that the company owner will have to develop;
• tariff calculations (calculations must be made for each type of insurance separately).

In addition, the owner of the enterprise will need to confirm the qualifications of the general director. He needs to have a specialized education and sufficient work experience.

And the last thing you need to do is pay the state fee.

The period for obtaining a license for this type of activity can range from 6 months to 1 year. This large amount of time is due to careful verification of the information provided. If the verification is successful, the insurance agency will be entered into the Unified State Register of Insurance Organizations, after which it will receive a license and will be able to begin work.

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Is there a need for an office for brokers?

It is worth saying that insurance is a specific type of business. Everything in it will depend on how the company was presented on the market, how good its office is, whether the agency’s employees are trustworthy, how many insurance services are available (for example, the ability to insure a car, a store, your own life, and so on). It can be stated with certainty that not a single person will transfer his money to a fly-by-night company about which there is no information. Clients will choose an agency that has a good reputation and respectable image.

That is why the office must be spacious enough to accommodate not only all employees, but also clients who come. An additional advantage will be the location in the central part of the city.

If you want to open a large agency with a good reputation, you need to make sure that it has one main office (the area of ​​which should be at least 500 square meters) and several branches that will be located in each district of the city (an area of ​​about 150 will be sufficient). square meters).

All offices must have high-quality and fresh renovation. In addition, you will need to visit the store to purchase expensive and modern furniture. This is necessary to provide a comfortable stay for potential clients.

The interior in all rooms should be made in the same style, which will need to be developed and advertised in the future. All this is necessary because image plays a very important role in an insurance agency.

If a decision has been made to open a branch under a franchise agreement, there is no need to come up with anything of your own. The owner will be fully provided with everything necessary for comfortable work.

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Selection of necessary personnel for an insurance agency

It is worth noting that employees play a big role in the success of an insurance company. That is why you need to hire highly qualified, smart specialists who will be able not only to insure a store or provide other insurance services, but also to solve any problems that may arise. In this regard, it is not recommended to neglect the large number of interviews that potential insurance agents will attend.

If you plan to provide examination services, you should know that there are 2 possible options for agreement with employees:

• official acceptance into the agency;
• concluding one-time contracts with specialists for conducting examinations.

In the latter case, experts must have all the necessary documents that may be needed to be able to provide these services.

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Necessary advertising to attract the target audience

For an insurance agency, the important question is how its owner is going to attract potential clients, because if there are no potential clients, there will be no income. First, you need to decide on the target audience of your business, then start organizing an advertising campaign and holding regular presentations of the services provided in places where a large number of potential clients pass by every day (this could be, for example, a store or an entertainment center).

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Recommendations you need to create a successful insurance business

The first thing you can do at the very beginning of your work is to reduce rates and try to attract potential clients by providing more favorable insurance conditions and a wider range of services than your competitors.

You need to take care of attracting a large number of smart insurance agents to your agency (at least 100 people), who can be sent to the store to attract people. The advantage will be to invite 15-20 leading specialists in the insurance field to your agency, who will provide the opportunity to organize the work of the company in the shortest possible time. These employees can be attracted by high salaries and the possibility of additional bonuses.

Agents should look for clients in places where there may be a fairly large number of people (an example is a car dealership, a store selling automobile components, if the agency provides CASCO and OSAGO services).

The process of granting rights to use the insurance company's business model does not differ significantly from traditional types of franchises. However, since the very concept of franchising is absent in the Russian legal field, in fact you become a partner representative office of an insurance company as a broker, agency or agent. All other attributes of the transaction remain in effect. Thus, the franchisor's remuneration may include:

• lump sum payment (one-time payment for using a business model);
• monthly fixed payments (royalties);
• interest payments on profits.

In turn, the entrepreneur (franchisee) receives at his disposal:

• detailed business plan for an insurance company;
• assistance in training key branch personnel;
• assistance in selecting premises for the company’s office;
• ready-made tools and job descriptions;
• policies for getting started;
• samples of standard contracts;
• brand book and office design rules;
• advertising campaign and marketing strategy plan.

In most cases, such a partnership is formalized as indefinite or for periods of 5 years with the right to extend.

On the other hand, becoming a representative of a respectable insurance company is not easy, because this business is built on reputation. Therefore, when sending an application to a potential partner, you should know what is needed to open an insurance company under a franchise. So, during the interview, the franchisor will certainly pay attention to the following qualities of yours:

• Knowledge of the insurance industry and legislation;
• Negotiation skills and personable appearance;
• Availability of start-up capital and financial reserve.

In addition, decisive decision factors may include:

• Selected region of activity. If your city already has representative offices of the franchisor's insurance company, you may receive a refusal or an offer to start in another region.
• Cooperation with other insurance companies. If you already represent a certain product on the market, it will be difficult to buy a franchise for another company.
• Presence of factors negatively affecting the reputation of the insurance company. This could be the bankruptcy of a business you previously owned or financial crimes.

Solving organizational issues

According to the law, only an entrepreneur can buy an insurance company franchise (the right to conduct activities on behalf of the company). This means that in order to directly enter into an agreement with the franchisor, you first need to register your business activity with the tax authorities. At the same time, it is important to know that as an individual entrepreneur you can only work as an independent insurance agent (selling the company’s services for a percentage of the transaction).

Important! The registration process should begin only after a careful study of the franchise market and a preliminary agreement with the selected franchisor. Otherwise, you risk wasting energy, money and time.

If you are interested in the opportunity to become an insurance broker or agency, you must register a legal entity (LLC, CJSC or OJSC). For such organizations operating in the insurance industry without a franchise, a mandatory condition is the presence of a minimum authorized capital amount specified by law, which does not allow ordinary entrepreneurs to enter the business.

So, general insurance will require about $3,200,000, and medical insurance from $3,800,000. Working under a franchise, you will officially be a representative of the franchisor and will be exempt from this requirement, which is a significant plus.

Features of taxation and legalization of business

When registering with the tax authorities, OKVED 65.12.1 is selected from the category “Insurance, reinsurance, activities of non-state pension funds.” It is worth noting that companies operating in this field of activity cannot apply the simplified taxation system and must pay standard income tax (for Russia: 13% federal rate and 30% regional rate). Therefore, when registering an activity, there is no need to submit additional applications (a suitable taxation system will be installed automatically).

In addition, insurance companies pay the following types of taxes:

• on property (vehicles, real estate) on the company’s balance sheet;
• land, if a plot is registered in the name of the company;
• advertising, when ordering promotion of services in specialized organizations;
• for hired personnel.

There is also no need to obtain a license to conduct insurance activities when working under a franchise, and this saves you not only money, but also time. So, in the standard mode, this will require at least six months and the following set of documents: constituent agreement, calculation methods, tariffs and business plan, documents confirming the qualifications of employees, economic justification for the policies.

Office and employees

The next stage of opening is finding an office. Despite the fact that the franchisor insurance company, according to the contract, must provide assistance, in fact the franchisee independently selects options, and the main copyright holder only determines whether the proposed premises meet the brand requirements and business plan. Some insurance companies do not oblige their representatives to work on premises, which significantly reduces costs.

Hiring employees is similarly done independently. The franchisor only makes recommendations on the level of qualifications and conducts training for key specialists (agents, managers and executives). All employees are registered only officially (under an employment contract).

How much does it cost to open an insurance company with a franchise?

The lump sum fee for purchasing an insurance company franchise for 2018 averages from $1,500. However, if the company is well known and allows you to work with a wide range of policies, the cost of rights to use the business model can reach $8,000. The price also varies depending on the scale of the future company, as well as the region of activity. So, for small cities the down payment may be lower than for a large metropolis.

The second expense item is royalties (monthly payments). They start from $150 and may depend on the franchisee’s potential turnover. In some cases, a company may set only a lump sum fee or only a royalty.

To open an office of an insurance company under a franchise, you will need from $200 for rent plus about $2000 for repairs and equipment in accordance with the requirements of the franchisor. These costs are also borne by the entrepreneur. In this case, the investment amount is not included in the lump sum payment. The starting capital must also include employee salaries, utility bills and taxes for the first few months.

Speaking of personnel, it should be noted that for a franchise insurance agency you will need the following specialists:

• insurance agents (minimum 2 people)- minimum rate plus a percentage of concluded transactions;
• accountant- from $200;
• lawyer- from $300;
• security guard- from $200;
• cleaning woman- from 100$.

The costs of advertising an insurance company opened under a franchise may be borne by the acquirer of rights or included in the amount of regular payments to the franchisor. However, if we are talking about such attributes as signs, pointers and business cards, then the entrepreneur always pays for these types of advertising from his own funds.

How to choose the right franchisor

In addition to the general terms of cooperation, each insurance company that implements a franchise offers a certain set of services that you cannot change after signing the contract. Therefore, it is very important that it meets market demand (determined during preliminary research) and ensures minimal risks. In practice, insurance policies can be divided into three large groups:

• personal (life and health);
• commercial (enterprise, product liability, trucking);
• property (auto, real estate, finance).

The following types of policies are in greatest demand on the domestic market:

• OSAGO- one of the riskiest types of policies for beginning entrepreneurs, since insured events occur quite often in this category. The number of transactions concluded for this type of insurance should not exceed 40%.
• CASCO.
• Insurance of collateral for loans(mortgage).
• Cargo insurance.
• Medical.
• Tourist.

It is best if the franchisor insurance company offers the opportunity to sell all types of policies, but such a franchise can be quite expensive.

Also, when assessing a potential partner, it is necessary to take into account the following qualities:

• How long the company has been on the market- acceptable if experience is at least 5 years.
• Brand awareness in your region- How quickly a potential client will pay attention to your representation depends on this.
• Projected business payback period- on average from 5 months or more. If a franchisor promises a return on investment in a shorter period of time, it is most likely an unreliable company.

Franchises of insurance companies in Russia

Currently, a number of insurance companies operate in the Russian Federation, scaling their business by selling franchises. Each of them offers its own terms of cooperation:

• "Gosavtopolis"- the company has been operating since 2005, but franchise sales have only been carried out since 2013. The main types of insurance sold by insurance companies are MTPL and CASCO. The initial investment in the business is $3,200, the lump sum fee is $1,500, there are no royalties.
• "Finance Group"- offers the opportunity to open a representative office not only in the Russian Federation, but also throughout the CIS, in the Baltic countries and even in the European Union. Operating on the market since 2005. Initial payment - from $8,000, starting investments - from $11,000, royalties are not paid.
• "Ugoria"- one of the oldest companies, founded in 1997. Provides the opportunity to work on twenty types of policies. It has several hundred branches in the Russian Federation. Investments - from $4,000, royalties and lump-sum payment are accrued from December 1 of the year following the signing of the contract. Payback from 7 months.
• « AVTOSLIV »- IT business model offering the opportunity to manage a virtual office for selling car insurance and driver liability products. This format significantly speeds up the start of a company, allowing you to start working literally immediately after purchasing a franchise. Starting investments - from $1600, lump-sum payment - set depending on the region, royalty - 5% of the branch's profit.

When considering the question of how to open a franchise insurance company, you should understand that in your work you will have to face a number of risks (difficulty in predicting losses, revocation of the license from the main copyright holder, unstable economy, tightening legislation, high competition). On the other hand, this format will provide you with a profit of $6,000 monthly, while allowing you to start working with a small start-up capital and in the shortest possible time.

* The calculations use average data for Russia

Starting investments:

100,000 - 400,000 ₽

Insurance agent bonus:

Net profit:

50,000 - 150,000 ₽

Payback period:

Is it realistic to open your own insurance business and how much can you earn from it? We understand the basic concepts and formats, analyze the insurance market, and calculate investments.

The insurance market of the Russian Federation has been on the rise in recent years, this is especially noticeable against the backdrop of a series of crisis events that affect other areas of business in Russia. To enter this market, in our opinion, it is necessary to already have work experience and established clients in this area. Providing sufficient profitability, the insurance business will allow an entrepreneur to start his own business with minimal investment.

Basic concepts of insurance business

Insurance is a method of compensation for losses suffered by an individual or legal entity through their distribution among system participants. Both in business and in everyday life, risks of losses arise from time to time. These could be simple risks such as fire or accident. There may be more complex risks, such as liability for failure to perform a contract or the risk of unintentional harm. The occurrence of all these risks can cause serious financial damage to both legal entities and individuals. Insurance companies will help minimize losses from such risks.

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In short, insurance is a relationship between the insurer (the one who provides insurance services) and the policyholder (the one who insures their risks) to protect the interests of both individuals and legal entities in the event of insured events, that is, certain events that may lead to financial losses of the policyholder, at the expense of funds formed from the insurance premiums they pay. The insurance premium is the amount periodically paid by the policyholder to the insurer in accordance with the insurance contract. It is also called gross premium or insurance premium.

In simple terms, insurance companies collect premiums from policyholders, which over a given period amount to much less than the insurance compensation paid by the insurer when certain losses of the policyholder occur. However, since the insurance company collects premiums from many insurers, some of whom do not actually have risks, this difference between the collected insurance premiums from all insurers and the paid insurance compensations constitutes the income of the insurance company. In this regard, the amount of insurance premiums is carefully calculated based on statistical data on the possibility of an insured event, the number of policyholders and the amount of possible compensation for damage.

This is the main difficulty for the insurance company. If the insurance premium is very high, then it will be unprofitable for insurers to insure, they will prefer to bear the risks of financial damage if losses occur themselves, and the insurance company will not receive income. On the other hand, if the total insurance payments are less than the amount of insurance compensation, the insurance company will go bankrupt.

Additionally, in addition to the amount of insurance compensation, the insurance premium must cover the company's operating costs, provide a certain amount of profit and take into account deductions for the creation of insurance reserves. To accurately calculate and balance insurance payments and insurance compensation, complex mathematical formulas and techniques are used that are developed by each insurance company.

Analysis of the Russian insurance market

In terms of its efficiency, the insurance market can be called one of the most profitable areas of business in Russia. For example, in 2017, insurance companies received more than 1,278 billion rubles in insurance premiums, which is 8.3% higher than the amounts collected in 2016. As you can see, for the current situation in the Russian economy, which is in crisis, such growth rates are very respectable.

On the other hand, in 2017, insurance companies paid 509.7 billion rubles in insurance payments. Compared to 2016, payments increased by only 0.77%. This dynamics characterizes the faster growth rate of income of insurance companies than expenses. It is easy to calculate that insurance companies pay out less than 40% of the collected funds. There are not many industries in the Russian Federation that provide more than 60 percent marginality (that is, the ratio of income and direct expenses).

The growth rate of insurance premiums in the life insurance segment decreased slightly (53.7% in 2017, 66.3% in 2016), but in terms of premium growth, 2017 was a record year - almost 116 billion rubles. In fact, at present, life insurance is the main driver of the development of the insurance market.

Due to the long-term nature of life insurance, payments under these contracts have not yet entered the active phase, which ensures special profitability of the segment. It should be noted that the development of the life insurance segment mainly occurs through the banking channel and is focused on investment insurance, which is offered as an alternative to deposits. When receiving a loan, many banks include in the amount of bank interest a certain amount, which is used to insure the life of the client, thereby the bank, by insuring the life of the client, reduces its risks of non-payment of the loan in the event of his death. Of course, the loan recipient pays for all this.

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There are also illegal ways to attract clients to voluntary life insurance, which are nevertheless actively used by insurance companies. For example, some insurance companies sell compulsory motor liability insurance policies only when purchasing a life insurance policy. This is illegal, but in the regions this technique is actively used by insurance companies.

The main areas of insurance in the Russian Federation are: life insurance, ground transport insurance, aviation and space risks insurance, agricultural insurance, property insurance of legal entities, property insurance of citizens, voluntary liability insurance, compulsory liability insurance of owners of dangerous objects, compulsory carrier liability insurance, compulsory auto liability insurance. As you can see, the insurance market is quite wide.

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Currently, there are 246 insurance companies operating in Russia. The largest number of insurers are registered: in Moscow - 128, in St. Petersburg and the Republic of Tatarstan - 12 organizations each, in the Moscow region - 9, in the Samara region - 7, in the Khanty-Mansi Autonomous Okrug - 6.

The number of insurance companies decreased by 30 in 2017. While in previous years most license revocations were due to failure to comply with regulator regulations and forced revocation of licenses, in 2017 21 companies voluntarily gave up their licenses.

Thus, the general trend in the insurance market is characterized by an increase in its volume and profitability, but large companies are gradually squeezing out their smaller competitors from the market or absorbing them.

Types of insurance organizations: what business is realistic to open

There are three types of insurance business organization in Russia: insurance company, insurance broker and insurance agency. All these three types differ significantly from each other both in the financial model of the business and in the nature of the activity. Let's look at what their differences are.

An insurance company is a legal entity that provides services in the field of insurance and acts as an insurer. The insurance company assumes financial obligations to compensate for damage at the time of the insured event. An insurance company requires a license from the state insurance supervisory authority.

An insurance broker is an organization that provides services to the policyholder in choosing the best insurer and its specific insurance product, as well as assisting the policyholder in receiving insurance compensation. In essence, this is a consulting company in the insurance market, which receives remuneration not in the form of an insurance premium, like an insurance company, but in the form of a commission from the client himself. An insurance broker requires a license to operate. Additionally, the insurance broker assesses the insurer's risks, indicates which risks need to be insured, which company is best to do this with, and how to adjust the contract with the insurance company so that the policyholder is guaranteed to receive compensation in the event of an insured event.

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An insurance agent can be a legal entity or an individual who sells policies on behalf of an insurance company. Remuneration for the work of insurance agents is paid directly by the insurance company. An insurance agency does not require a license. Accordingly, all risks and financial responsibility to the policyholder are borne by the insurance company on whose behalf the insurance agent works.

The main documents regulating insurance activities in the Russian Federation are laws, regulations, standards, guidelines and other documents, of which there are more than 50. Without a qualified lawyer, there is no point in trying to understand this large volume of documents. But if you want to get a general idea of ​​the legal support for insurance activities, start by studying the Law of the Russian Federation of November 27, 1992 N 4015-1 (as amended on August 3, 2018) “On the organization of insurance business in the Russian Federation.”

Let us dwell on the most important point regarding starting an insurance business.

In July 2018, the State Duma of the Russian Federation adopted a law on increasing requirements for insurance organizations. This law provides for a gradual increase in the minimum authorized capital of insurance companies to 300 million rubles (previously 120 million rubles), for those engaged in life insurance to 450 million rubles (previously it was 240 million rubles), for those companies engaged in reinsurance, that is, when one the insurer insures the risks of another, up to 600 million rubles (previously it was 480). The minimum authorized capital of insurance companies providing compulsory health insurance must be 120 million rubles. Thus, the minimum investment in creating an insurance company will be at least 150 million rubles.

To create a company carrying out intermediary activities as an insurance broker, the company will have to provide a bank guarantee in the amount of at least 3 million rubles or documents confirming its own funds in a similar amount.

The law comes into force on January 1, 2019. But you should not try to open an insurance company earlier than this period with a smaller authorized capital, since from the moment this law comes into force, all participants in the insurance market will be required to increase their authorized capital. The requirements for increasing the authorized capital will come into force gradually over several years.

Thus, speaking about the insurance business, we can reasonably exclude organizations such as an insurance company from the list of companies possible for opening a business, since the requirements for opening one are very high and will become more stringent. We can only talk about a company operating as an insurance broker or insurance agent.

Insurance broker vs insurance agent – ​​which is more profitable?

There are about 70 insurance brokers in Russia. This is a very small number of companies for a country with a population of more than 140 million people.

As we wrote above, an insurance broker helps the insurer choose and obtain the best conditions on the insurance market for its insurance product. However, he also pays for the services of an insurance broker. Of course, the policyholder saves his own time on studying the entire market and the many offers on it, as well as searching for a truly reliable insurance company.

The remuneration for the services of an insurance broker is about 20% of the cost of the policy. This is quite a significant amount; the client is not always ready to make such expenses. In addition, the amount of the bank guarantee or the insurance broker’s own funds must be at least 3 million rubles.

Additionally, the existing requirement to use the new chart of accounts requires software costing about 1.2 million rubles, and another approximately 400 thousand rubles per year is required for its maintenance. And this is in addition to the costs of employee salaries, office maintenance and other business expenses. This situation leads to the fact that the number of insurance brokers decreases every year - many players in this market refuse licenses.

Of course, there are a number of companies that call themselves insurance brokers, but no more than 5% of them have a license for brokerage activities, that is, only these 5% operate legally.

As for insurance agencies, there are practically no requirements for their work; their activities are regulated by the insurance companies on whose behalf they work. You can register a limited liability company and work as an individual entrepreneur. There are no requirements for authorized capital or special forms of accounting. The only difficulty is the need to pass an interview with the insurance company for which you want to be an agent. It is necessary to demonstrate both knowledge of the insurance market and an established client base. Of course, preference is given to agents who already have experience working in insurance companies.

So, we conclude that currently in the Russian Federation, organizing the activities of an insurance broker is a very costly and complex matter. If we are talking about a small business, then it is necessary to open an insurance agency.

Insurance agency income and expenses

The activity of an insurance agency is working with people. Essentially, an insurance agency is a company that employs several insurance agents.

As we wrote above, opening an insurance agency is a business for professionals. It is suitable for those who have worked as an insurance agent on the company staff for some time. And if you are such a professional, then business will be up to you. It is advisable to start opening an insurance agency with one person. This makes it easier to see the insurance business and its prospects from the inside without any special investments.

At the first stage, to open such a business, it is better to open an individual entrepreneur. At first, you can do without an office altogether. All you need is a computer, a printer with a scanner and a workspace. That is, the minimum investment to open such a business will be about 50 thousand rubles.

The main OKVED code should be 66.29.9 “Other auxiliary activities in the field of insurance, except for compulsory social insurance.”

If you already have sufficient work experience and know the business, then you can open a company with three or four insurance agents. The cost of opening a company with three working insurance agents will be about 150 thousand rubles. The requirements for an office, in this case, are minimal, so you can choose a small ready-made room, preferably with furniture and not in need of renovation. There are enough such premises on the commercial real estate market in any region.

Of course, such an insurance agency will not immediately break even, like any business. But the salary of an insurance agent, as a rule, consists mainly of the bonus part, the salary part is minimal. Therefore, for a three-person agency, you will need to set aside a small revolving fund to pay office rent, a small portion of employee salaries, and other operating expenses such as communications and office supplies. Thus, to open a small insurance agency you will need about 400 thousand rubles.

Of course, you can get by with a much smaller amount, but in such a business it is advisable to have a small reserve of finances to ensure the operation of the company, which is necessary to develop regular customers and work out business processes. The minimum investment amount, in our opinion, can be 100 thousand rubles.

The insurance business is successful when the insurance agents are professionals. The average insurance agent premium is about 10-30% of the policy cost, depending on the type of insurance product. As a business owner, you keep a portion of what the insurance agent earns and that is income for your business.

Most often you will have to sell insurance products in the following areas:

OSAGO and CASCO;

life and health insurance;

property insurance for individuals and legal entities;

business insurance.

If you have three qualified insurance agents, your company’s profit will be about 50-70 thousand rubles per month at the initial stage. Then everything depends on how successful the sales will be. In case of successful sales, your company’s profit can increase, with the specified number of employees, up to 100 - 150 thousand rubles. If things go well, the staff of agents can be expanded to 10-15 people.

As a rule, the payback period for investments when opening an insurance agency is from 3 months to six months.

Marketing and promotion of an insurance agency

First of all, you need to understand your potential client. Study his motives, income, determine what insurance products the client needs in the first place.

The basis for success in the insurance business is personal contact with the client. Therefore, the personal qualities of insurance agents come first. Communication skills, excellent knowledge of insurance products, and presentable appearance of agents are the basis for success. The basics of sales technology, working with objections and knowledge of the basics of psychology are mandatory for an insurance agent.

It is necessary to make a good and understandable website with the products of your insurance agency. Promotion on social networks can also significantly increase the number of your customers.

More than 80% of information about the agency should be of an image nature and aimed at creating a positive view of your agency from the point of view of buyers of insurance services.

Franchise insurance agency

Purchasing an insurance agency franchise allows you to reduce the risks of starting a business. You receive the right to work on behalf of a well-known brand, a certain flow of clients sent directly by the franchise owner, a set of training courses for agents and business process regulations. In some cases, you will be provided with legal and accounting support for your business.

The cost of purchasing such a franchise is from 50 thousand rubles. The required investments in opening a franchise insurance agency range from 120 thousand rubles. Royalty starts from the amount of 8 thousand rubles.

Additionally, the franchise owner can provide the following services.