insurance company strategic plan

Strategic Planning for Insurance Brokers

Strategic planning is essential for insurance companies aiming to achieve their strategic goals and drive growth. Here’s a guide on creating a strategic plan for insurance brokers.

Successful business owners and industry leaders will tell you that strategic planning is essential to achieving goals. Many strategic plans are created with enthusiasm and good intentions, but sometimes the energy from the strategic planning session quickly fades, and there’s a failure to execute. The most important part of strategic planning for insurance brokers is understanding the “how” to create an effective plan that can be successfully implemented.

Four Essential Elements of Insurance Broker Strategic Planning:

• FOCUSED: A strategic plan should state and prioritize goals so there is a clear understanding of what the firm is working toward.
• RELEVANT: Your strategic plan should live in the present and address the future, capturing where the business is today, where it wants to go and how it will get there.
• ALIGNED: Your strategic plan is not a document that exists in a vacuum. It should align with your culture, values, mission statement, and vision.
• ACTIONABLE: What good is your plan if it lacks steps for accomplishing objectives? The strategic plan should assign responsibilities and have individuals held accountable to predetermined dates for the objectives.

Setting the Tone for Strategic Planning for Insurance Agencies

Strategic planning for insurance companies will be the central focus of your agency or brokerage’s most important meeting this year. Don’t treat it like any other meeting. First, consider the meeting location — and rather than a meeting, stage this as a retreat. The purpose is to focus on the plan, which means getting out of the office and away from daily distractions. Next, select the facilitator. This person is responsible for keeping discussions on track and encouraging productive conversations.

Sometimes, there is a person in-house who can effectively take on the facilitator role, but some agencies find value in an outside facilitator leading the discussions. An outside facilitator can serve as an unbiased third party who can redirect discussions unrelated to the plan and constructively drive conversations that benefit the plan.

The pre-planning meeting includes an overview of the process, expectations, how objectives will be captured, and accountability. Pre-planning also includes determining participants in the strategic planning retreat and engaging those individuals to discuss the upcoming strategic planning process.

You should include key decision-makers, those with authority positions, and the management team. Do you have an executive committee or board of directors? If not, this may be a good time to consider establishing those committees and creating formal corporate governance policies and procedures. An adviser can walk you through this process if it’s new territory.

Evaluating Your Insurance Firm’s Current Position in the Strategic Planning Process

Begin your strategic planning by doing a “Where are we today?” evaluation, assessing the firm from a financial, competitor, or cultural standpoint. Start by reviewing your mission statement. Does it still capture the essence of the firm? Is it relevant? Find and review example mission statements from other firms and determine if yours might need revamping. A mission statement defines what you are and keeps you focused on developing, prioritizing, and achieving your goals. Language should be concise. All important decisions should be made with the mission statement in mind.

Once the mission statement is firmed up, do a SWOT analysis that addresses your firm’s Strengths, Weaknesses, Opportunities, and Threats. Furthermore, a PEST (Political, Economic, Social & Technological) analysis can unearth outside factors that impact external opportunities and threats.

The SWOT and PEST analyses can be used to create objectives. You’ll assess how consumer needs, competition, rates, industry changes, government policies, and the economy impact your firm. What must be done to manage these pressures and succeed? How can the firm capitalize on these external factors to drive profitable growth? Your objectives should be consistent with the company’s mission statement, specific and measurable. Your objectives should also be challenging, stretching the business to the next level.

This brings in a critical discussion that should take place during the “Where are we today?” evaluation. What about perpetuation? What are the departing shareholders’ goals and desires for perpetuation? Where does the company stand in this process? The firm’s financials must also be assessed: break out the financial statements and review actual performance and projected performance. Compare the organization to benchmarks. You’ll want to identify the growth required to achieve your plan and the reality of achieving planned growth.

Talk about the talent pool. Do you have the right people in the right places? Who is doing what, and why? This is also time to create an organizational chart, review your current one, and potentially look to create what it might look like in five years. Where are voids in the five-year organizational chart? Leverage these voids to create a five-year hiring plan. Be sure to move into conversations about what talent you’ll need to reach your goals when addressing where you want to go.

Creating the Plan & Executing It

Going through the process of assessing where your company is today is no easy task. But it’s critically important to understand this before moving on to the next step of establishing the goals of your strategic plan and mapping out the process for executing them. The ‘execution’ of the plan is where most strategic plans fall apart.

Read more about the steps required for creating strategic goals and effectively executing all the objectives of a firm’s strategic roadmap here: Reaching The Goals of Your Strategic Plan .

Investment banking services offered through MarshBerry Capital, LLC, Member FINRA and SIPC, and an affiliate of Marsh, Berry & Company, LLC, 28601 Chagrin Blvd, Suite 400, Woodmere, OH 44122 (440) 354-3230 .

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The insurance industry is undergoing more upheaval than any other. Disruptors include changes in industry regulation, customer behavior, distribution channels, traditional and new competitors and core technologies of production and service.

• Can you quickly and decisively respond to important new challenges and opportunities?
• What will your markets look like, who will be your most important customers and competitors, and how are customer expectations likely to change?
• How can you get closer to customers and better understand their needs?
• Is your business nimble and innovative enough to compete with the mobile companies, internet providers and other new entrants that are making inroads into the market?

Next in insurance 2023 Scenarios for the next year and beyond

Because the trends affecting the insurance industry will continue to manifest longer than in just 2023, this year’s “Next in insurance” is looking beyond just the coming year to the rest of the decade. Change will remain constant and - as was the case with work and customer service models during the pandemic - sometimes be very sudden. But the factors spurring it will remain much the same as they are now:

• The ever-increasing growth of digital channels, wider distribution points via partnerships and embedded options, and enhanced analytics are integrating markets. Policy options will only grow and barriers to entry ease.
• Social responsibility and ESG remain critical. This is about more than maintaining a positive brand and extends to helping clients and society mitigate - even prevent - natural and human catastrophes, cybercrime and other loss incidents.
• Insurance companies can no longer be merely sellers of generic policies. They have to be technology-enabled - not just “digital” - in order to agilely assess and price risk and serve customers in the situations they need, learn about and purchase insurance.

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Insurance Company Business Plan

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Acme Insurance

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

By focusing on its strengths, its present client base, and new value priced products in the next year, Acme Insurance plans to increase gross sales by 10% and profit by 15%.

Our Keys to Success and critical factors for the next year are, in order of importance:

• Identify “Target Markets.”
• Institute our Property inspection program.
• Begin our “Insurance Partners” program.
• Develop a profitable property program.
• Provide small businesses with an affordable basic business package.

Acme Insurance Incorporated has been profitable, but recently we have had  declining market share  and this must be addressed. Therefore our goals are:

• To re-establish Acme Insurance Inc. as the market leader in quality and value-priced insurance products in Smalltown District.
• Establish good working relationships with our present insurance markets by meeting with their decision makers and plotting a mutual plan for success. Get commitments for support and products that we can market in our trading area starting April 1st of Year 1.
• Investigate new markets that meet our marketing criteria by a) committing to small rural brokerage; b) providing products suitable to our economic and social climate; and c) plans for the upload and download of insurance policies.
• Provide sales incentives to staff to meet sales goals of 10%.
• Complete inspection of all Pilot homeowners within one month before renewal date.
• Formulate plans to acquire another brokerage

Acme Insurance Inc. is dedicated to providing insurance products that provide quality protection with value pricing. We wish to establish a successful partnership with our clients, our staff members, and our insurance companies, that respect the interests and goals of each party.

Success will be measured by our clients choosing us because of their belief in our ability to meet or exceed their expectations of price, service, and expertise.

In order to implement our strategic goals, we will focus on developing the following tools.

• Knowledgeable, friendly staff that can empathize with our consumers needs and circumstances, especially in handling a loss.
• Policies that meet or exceed the expectations of our clients, and that are affordable, available, and understandable.
• Policies and endorsements delivered on time with minimal errors.
• A commitment to an annual insurance review for all of our clients. A phone call is more than any direct mass marketer offers. We believe personal contact and service is the cornerstone of our success.

Acme Insurance primarily markets and services Personal Lines Insurance. Its customers are mostly rural, lower income families or long time resident senior citizens who demand value priced insurance premiums in keeping with their lower and fixed incomes.

We also provide insurance to small business, mostly family-run seasonal operations primarily focused on the tourist trade.

Acme Insurance is a privately incorporated company in the Smalltown district and is licensed to transact both Life and General Insurance. The shares are held equally by John Smith and Peter Smith.

Our Insurance and Real Estate brokerage operates from two central locations. Our modern attractive office in Smalltown, at 178 Small Street, is located in a small plaza which is owned by the principals of our brokerage. It comprises 2,000 square feet.

In Nexttown, we operate from an 800 square foot, one-story brick veneer building overlooking Lake Small, which again is owned by the principals of our firm. The office is strategically located across from the Post Office.

We have stressed to our insureds the importance of good communication between the broker and client to insure proper coverage is in place. We have noticed as our clients become better informed about insurance that there has been a tremendous increase in clients wishing in-depth discussions about their policy coverage and how they can get the most value for their insurance dollar.

Our company’s strength lies in the quality and depth of our products and staff. Our offices, unlike our competition, are open six days a week. Because of our larger staff, we are able to service our clients even when a client’s broker is busy or out of the office on inspections.

Our staff has specialists in commercial insurance that can properly service and underwrite local business. We also have some quality commercial markets unavailable to our competition.

Our Real Estate division, which is a separate company, helps with market value and replacement cost analysis when required.

The past few years have seen tremendous upheaval in the insurance industry. The number of players has decreased in both the broker and company communities. The recession has curtailed insureds from properly maintaining their homes and automobiles, and insurance fraud has become a major issue for the entire insurance industry.

Brokers are concerned that in spite of commission reductions, quotas, contract cancellations, and refusal to write new auto business by some markets, they now may find themselves in competition with some of the traditional broker distribution companies that are setting up direct marketing facilities and branches. The banks now have announced they will open stand alone insurance offices to retail insurance.

In spite of the above, we believe that the independent broker will survive. We are more automated than most service industries. We are close to the customer, regardless of some insurance companies’ attempts to sever the traditional broker-client relationship. Our clients, in most cases, still do not care or know which company we place them with. They trust our judgement in selecting the proper coverage and company to place them in.

Upload/download capabilities are in many brokers offices, including our own. This will cut costs, improve efficiency and accuracy, and help us meet the competition from banks and direct writers. Companies that truly value and trust the broker distribution system will align themselves with professional brokers and grant more underwriting authority similar to Lloyds.

Among the substitutes that are our main competition we have Local independent brokers, Agents (such as Co-operators), Mass Markets, Mass merchandise programs heavily advertised over the radio such as “Gray Power”, and Group Plans.

We have depended in the past on a small advertisement in our local newspaper, listings in the Yellow Pages, and word of mouth. However with the changes in the market today, we must begin to investigate alternate ways to put our name in front of the public. We have set out several criteria for our marketing campaign that include”

• All advertising has to emphasize our differentiation point rather than price.
• We must sell the company, not the product. In spite of some companies’ efforts to minimize the importance of the broker, our clients still identify with the broker, not the insurance company.
• We must improve and increase our contacts with our clients.
• Make contacts and support senior citizen groups and cottage associations.

Based on these changes in our goals, outlook, and company culture, we anticipate that we will be able to increase revenues substantially by year 3 of the plan and increase net profit handsomely. The company does not anticipate any cash flow problems.

1.1 Mission

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1.2 Objectives

• Investigating new markets that meet our marketing criteria by a) committing to small rural brokerage; b) providing products suitable to our economic and social climate; and c) plans for the upload and download of insurance policies.
• Formulate plans to acquire another brokerage.

1.3 Keys to Success

We believe the keys to success in a small town insurance business are:

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

2.1 company ownership, 2.2 company history.

Acme Insurance was founded as a sole proprietorship in 1938 and was owned and operated by the founder Stan Smith. He originally ran the operation from his home, but moved to the business section of Smalltown when he outgrew his home based operation.

In 1972, the company constructed a new office building in the main business section and over the course of the last 15 years has purchased four other brokerages, one of which led to the establishment of our branch office in Nexttown.

In 1988, a new company was formed “Acme Insurance Inc.” which bought the insurance business from “Acme Insurance Limited.” All shares in the new company are owned by John S. Smith and Peter Smith.

Today, the fourth generation of Smiths, Stephen and Jason Smith, are working in the firm. We are also gratified to report that our founder, Stan Smith, is still in our office every day, and although still licensed, he is only active in a “goodwill ambassador” capacity.

2.3 Company Locations and Facilities

Our Smalltown operation enjoys its own private parking lot for our clients and our staff. A second story was recently added to our office which will allow ample room for expansion. It is presently used for training, staff meetings, and conferences.

Acme Insurance is committed to providing professional sales and service for its insurance customers. We have established what we consider to be an excellent reputation in our area, and are the largest multi-line insurance broker in our trading area.

3.1 Service Description

Acme Insurance provides home, automobile, and business insurance in Smalltown District. We take pride in knowing that for over 50 years we have helped our clients to find the best coverage at the right price that suits their needs and expectations. In the event of a claim, our clients know that we are there to provide help and counsel to ensure a fast, speedy claim settlement.

Like other independent brokers, we issue binders and new policies, endorsements and process renewals.

We also provide insurance services to non-clients, such as lawyers and mortgagees, to ensure our mutual clients have proper coverage and binding notes in place for the purchase of homes, businesses, and automobiles.

3.2 Competitive Comparison

Since we are brokers, (not agents such as Co-operators), we have access to a range of standard and specialty markets.

3.3 Sales Literature

We have recently produced a pamphlet titled “Insurance Partners” which stresses that a successful insurance partnership between the client, the broker, and the company is based upon a new concept.

Not only do the broker and the company take responsibility for proper protection and indemnity in the event of loss, but in the 1990’s, the client must also take his share of responsibility to insure the safety of his property by keeping it well maintained and using qualified professionals to update or change the heating, electrical, and plumbing systems in his home. We stress that multiple claims or claims arising out of poor maintenance may adversely affect his insurance.

In addition to the above, our brokerage uses a number of boilerplate letters on our computer system that are sent along with various types of policies explaining unique features or limitations in the contracts to avoid possible Errors and Omissions claims. They also encourage our clients to contact us about reviewing their coverage and promote other products and services we provide.

3.4 Fulfillment

We call upon the ample resources of our insurance markets to help with any unusual situations which occur and may present a problem finding proper coverage for our client.

When we required trained inspectors for evaluating the safety of our insured’s solid fuel heating devices and installations, we sent one of our own producers for training and who now has W.E.T.T. certification.

We are proud that Acme Insurance Inc. has never had an errors and omissions loss, but to protect our clients against that possibility, we have in place Errors and Omissions Insurance through our Insurance Brokers Association in the amount of $1,000,000 (Employer’s Reinsurance).

3.5 Technology

We have been fully computerized since 1982 and both offices and some of our producer’s homes are connected to our main computer server located in Smalltown.

As of February 1996, we have entered into an agreement with our present computer vendor, Teleglobe, to update our computer system to a Pentium server, and to Release 74, which allows upload/download capability with our companies, as well as email.

We have elected to stay with the Teleglobe Tabs system since our staff is familiar with the program. It has exhibited excellent, reliable telecommunications ability. The high speed ISDN lines required for MS Windows-based communication between our branch office as well as our home offices are not available in our trading area, so at present we will not migrate to the new MS Windows-based products available from Teleglobe or Agency Manager.

3.6 Future Services

Although Stan Smith started out as a life insurance agent, the “life” part of our business represents only 1% of our sales. We are looking to strengthen this part of our operation in the future. Due to the complexity and number of life and disability products, we are presently using an outside service: Atlantic-Smith Insurance out of North Town, although two of our general insurance producers have life agent licenses.

We are in the process of setting up a substandard property market. We feel that there is a need for this service and that it can be profitable if strictly underwritten with proper controls in place.

Market Analysis Summary how to do a market analysis for your business plan.">

Recent demographic studies in our area reveal a total year-round population of approximately 13,000, which rises in the summer to approximately 25,000. We have a relatively high number of seniors and many younger, newly-formed families dependent on government assistance living mostly in a rural, unserviced, thinly populated area. This makes it costly to service our clients. Long distance phone bills represent our second largest expense (our two offices each have their own toll free phone numbers) and the cost of visiting our insureds to do home inspections is time consuming due to the large area we service.

We are targeting seniors which have proven to be a profitable, stable market for our brokerage in spite of our present difficult economy.

We are fortunate that we have not yet had the intrusion to a large degree of mass merchandising programs like “Silver Power.” Smaller brokers have made inroads into our traditional rural business, with low cost farm markets that sell home and auto insurance. We understand that some of these markets are in a poor financial position and may cease to be a factor in the future.

4.1 Market Segmentation

Our market consists of senior citizens, lower-income young families (many of who are on social assistance) and the small, family-run business (many of which are seasonal and based on the tourist trade). There are a few industrial risks and those that are located here are branches of larger industries which obtain their insurance through large brokers in Bigtown.

Our target market is the seniors, family business, and middle income earners in our area. Statistics show that over 42% of our permanent population is above 45 years of age. The average family income is approximately $27,000 and the unemployment rate 9%.

We are cautious about encouraging business from lower income prospects since they tend to have wood heat, homes in poor repair, and many attempt to install and repair their own plumbing, wiring, and heating systems.

Another market of concern is out-of-area clients who may have been payment or claim problems to local brokers and attempt to find a distant broker to provide coverage instead of making the necessary adjustments in their own lifestyle to prevent claims.

Clients who have moved repeatedly can be difficult to obtain proper underwriting information and past claims experience on, and we feel our staff is to be commended for their ability to properly assess if a client should be placed to our standard markets or would be better served by a specialty company.

4.2 Service Business Analysis

The past few years have seen tremendous upheaval in the insurance industry. The number of players has decreased in both the broker and company communities. The automobile product has, in the mind of the public, become unaffordable, unavailable, and impossible to understand. The recession has curtailed insureds from properly maintaining their homes and automobiles, and to exacerbate the situation, many clients have turned to wood heat and started doing their own repairs and maintenance which may have increased the number and severity of claims. Insurance fraud has become a major issue for the entire insurance industry.

Our traditional close relationship with our companies has been strained. Brokers are concerned that in spite of commission reductions, quotas, contract cancellations, and refusal to write new auto business by some markets, they now may find themselves in competition with some of the traditional broker distribution companies that are setting up direct marketing facilities and branches. The banks, even though thwarted by the federal government in its last budget to retail insurance from their premises, will continue pressure on the government and now have announced they will open stand alone insurance offices to retail insurance.

The new federal government is close to adopting a new automobile contract that hopefully will make it affordable, understandable, and available to our clients. A profitable automobile product will entice the companies to aggressively seek new sales and more brokers will see companies offering contracts.

4.2.1 Main Competitors

Local independent brokers Cal Roberts, Patrick C. Johnson, Rob Champlain

• Strengths – alternate markets, especially small farm mutuals, that still continue to give low prices, still continue to write wood stoves, and allow discounts and underwriting terms such as table 1 rates on homeowners within 8 km of fire hall protection.
• Weakness – most are smaller, one-man operations that do not have the backup or finances to aggressively impact the marketplace.
• Strengths – Large advertising budget and competitively priced products. Their commercial is difficult to compete against in some cases because they seem to not have the same restrictions on underwriting as our markets. Also they have large capacity to write certain risks.
• Weakness- one small operation that does not have the same hours as our offices. Staff, because of salary, do not appear to be very knowledgeable or aggressive.

Mass Markets

• Strengths – large advertising budget and very competitive prices.
• Weakness – not local and largely unknown to our clients at the present time.

Our own Companies

• Strengths – already known to our clients; will be competitively priced.
• Weakness – an unknown quantity to our insureds. Also, if their people skills are similar to what they now exhibit, they will have great difficulty empathizing with the client and selling the client what he needs, not what they think he needs.

Mass merchandise programs heavily advertised over the radio such as “Gray Power”

• Strengths – price.
• Weakness – a still untried, unknown quantity.

Group Plans – teachers, public employees

• Strength – group pricing.
• Weakness – very little obviously, since we insure very few of the professions.

4.2.2 Competition and Buying Patterns

The main volume of income for our brokerage is generated by automobile premiums because they are relatively higher priced to insure than property, and because automobile insurance is mandatory in the region.

As stated previously, our success is dependent on our staff and our companies convincing our clients and prospective clients that price, although important, is not the only criteria for the purchase of insurance. Our advertising stresses that we have two offices, open six days a week with after-hours support and we have been an active, concerned, community involved, local business since 1938.

Still, price is very important and we must work with our markets to ensure that our insurance products are available and affordable to a large part of the market. It is the broker’s job to ensure the client understands what he is buying, and if circumstances dictate a lower-priced product, we must make our insured aware of the trade-off in coverage versus price.

4.2.3 Business Participants

• Cal Roberts Insurance
• Markets – Royal, Dominion of Canada
• Patrick C. Johnson
• Markets – General Accident, Canadian Surety
• Rob Champlain
• Markets – Farmer’s Mutual, National Frontier
• Co-Operators
• Silver Power
• Markets – Trafalger
• Con-struct Direct

4.2.4 Distributing a Service

Our trading area is rural. Premiums are relatively low and therefore not subject to large brokerages or specialty direct writers mounting aggressive advertising campaigns to bring in business. There are few group plans providing insurance coverage with the exception of our teachers. Smalltown has two independent brokers and a Co-Operators agent, Nexttown has two independent brokers, and Southtown has one. We have just started to see some move by locals to “Silver Power” and other specialty retailers who advertise on radio and television. The banks are still a future unknown.

Strategy and Implementation Summary

• Emphasize service and ongoing support . We must avoid selling only one policy at the lowest price for each customer and concentration account selling which greatly enhances client retention.
• Build an Insurance Partnership . The customer does not want to shop every year for a new broker. Concentrate on building a long term relationship with our customers and make the client and our staff appreciate the value of a long-term relationship.
• Focus on target markets . We must focus on personal and business customers that we identify and select to insure, instead of allowing potential customers to choose us, which could result in our brokerage attracting problem clients from other brokers.

5.2 Marketing Strategy

• Emphasize service and support.
• Build a partnership business based on account selling.
• Focus on senior, claims-free personal lines business and the profitable, well-run, small family business.
• Target small, non-franchise business that does not have access to group insurance plans.
• Investigate acquiring other brokerages in our area.

5.2.1 Promotion Strategy

We have depended in the past on a small advertisement in our local newspaper, listings in the Yellow Pages, and word of mouth. We must begin to investigate alternate ways to put our name in front of the public.

• All advertising has to emphasize our differentiation point rather than price. We will be developing a “Now what do I do?” message to emphasize the need for dealing with Acme’s insurance professionals so that in the event a loss occurs, you know you have the proper protection.
• We must improve and increase our contacts with our clients. All clients should be contacted before renewal to ensure covers are current and adequate. Also, new insurance should be solicited. We are investigating the production of a company newsletter or use of the I.B.A.O. newsletter which is distributed on a bi-annual basis.
• We have put our email address in our newspaper advertising, but we must be careful about attracting clients from out of the area who may be difficult to service and properly inspect.
• Make contacts and support senior citizen groups and cottage associations. Identify sports and hobby groups that involve seniors and cottagers.

5.2.2 Distribution Strategy

• Select Seniors We will give special attention to this market in our advertising. We will make a concerted effort to support and sponsor seniors programs in our area. We will seek out Cottage associations and offer support and advice to attract new senior clients who are recently retired or about to in the near future.
• Insurance Partners We will include inserts in renewal, endorsements, and correspondence stressing the importance of the insured taking an active interest and responsibility for trying to control the severity and number of claims. Our staff should take every opportunity, when discussing insurance with a client, to emphasize the consequences of multiple claims.
• Business Partners Again we should encourage insureds to take responsibility for controlling claims in partnership with their broker by installing alarm systems and continuing to maintain and upgrade their property. We should stress the benefit that good loss ratios help to control rates and ensure markets that want to write their business.

5.2.3 Positioning Statement

Our target market is Smalltown District. The ideal client is claims-free aged between 45 – 75 who owns his own home and car and is debt free. Has exhibited stable family patterns and is known and respected in the community.

A similar profile should be used for commercial prospects with emphasis placed on the well-run, profitable business that has exhibited good claims experience.

5.2.4 Pricing Strategy

Our customers are especially sensitive to value. We must ensure that our price and service are perceived to be good value to our client.

Our markets must offer several payment options to our clients that are convenient to the client, not just to the company. Example – payment on insured’s preferred day of month, not on the company’s, and accepting payment by credit or debit card. Many insureds are on a fixed income and receive their income on a set day of each month or a paycheck on a particular day.

We encourage our companies to “Target Market.” Many of our companies are now focusing on what they have perceived to be profitable niche markets, where they can offer a competitive product with little, if any, competition.

We are seeing our commercial markets now moving toward basic coverage and limiting the “bells and whistles,” all-risk products available to only those clients who have modern, well-managed, profitable, low-risk operations. This should help stabilize pricing and, even more important, ensure that there is an insurance market available for most risks. Continued insistence by the industry on better protection, i.e. fire and burglar alarms, upgrading of buildings, etc., have started to lower loss ratios.

Many of the larger insurance markets have increased minimum premiums to $1,000 for any commercial package policy. Our Lloyds market should be able to accommodate these customers with a minimum premium of approximately $600.

5.3 Sales Strategy

We want to emphasize the benefit of dealing with professionals who live and work in our client’s area. We know their needs and their problems and we have a local reputation to protect, unlike an out-of-town market. If the out-of-town broker fails to provide proper cover or advice, they lose one client. We could stand to lose many if the public perceives a professional failure on our part.

Competitive prices for our identified target markets. Discounts of up to 25% for claims-free seniors who renew their home insurance with us.

Careful inspection and the judicious use of deductibles and warranties for insureds using wood stoves should help alleviate company concerns about solid fuel heating devices. Competitive pricing is not an important factor to attract business because competition is very limited for primary wood heat houses in our area. This may provide a chance to pick up all of the insured’s business because, in many instances, they contact us after being told by their previous broker that, in spite of their claims-free status, the broker doesn’t want their house insurance.

Business partners provide us the opportunity to sell lower-priced, basic insurance coverage to our client. Many clients have expressed interest in retaining part or all of the insurance risk, especially for burglary. They feel that if they have installed central alarms and bars, they can take the chance of self insurance.

5.3.1 Sales Programs

We are investigating sales incentives for our producers. They must encourage profitable new business and have a retention component. Presently, our producers receive $10 for every new policy written in our office, with the exception of recreational vehicles.

5.3.2 Sales Forecast

The following table and related charts show our present sales forecast. We are projecting sales to grow at a moderate but steady pace for the coming year and to continue into 1997.

5.4 Strategic Alliances

Some of our present companies have surveyed us to investigate co-operative advertising but we have not committed to any programs at present.

5.5 Service and Support

Acme Insurance is really a group of small brokerages housed under one name and location. Our producers are each responsible for a book of business. They sell, service, handle claims and are responsible for their accounts receivable. We have found over the years that our clients prefer to deal with one broker who is aware of their particular needs.

5.6 Milestones

We have listed our plan milestones in the table below.

5.7 Service and Support

Management summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">.

Acme Insurance is slow to hire new people and loyal to those whom we have hired. We hire only when there is a vacancy or growth dictates more staff. Most of our people have been in our organization over 15 years, which allows our clients and our companies to form long lasting business relationships with their broker.

6.1 Organizational Structure

Our brokerage is divided by client instead of service. Each broker is responsible not only to renew and service a client’s insurance, they also are responsible for collection and claims. We feel a client wants to deal with his or her broker, especially in a claim situation, instead of an unknown “specialist” whom they feel does not represent their interests.

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Insurance Company Strategic Plan Template

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In the fast-paced world of insurance, having a solid strategic plan is essential for staying ahead of the competition. ClickUp's Insurance Company Strategic Plan Template is designed to help insurance companies like yours define their long-term goals, set objectives, and outline strategies for growth, risk management, customer acquisition and retention, product development, regulatory compliance, and financial performance.

With this template, you can:

• Map out your company's vision and mission
• Identify key performance indicators (KPIs) to track progress
• Set realistic targets and timelines for achieving your goals
• Collaborate with your team to ensure everyone is aligned and working towards the same objectives

Take your insurance company to new heights with ClickUp's Insurance Company Strategic Plan Template. Start planning for success today!

Benefits of Insurance Company Strategic Plan Template

Crafting an effective strategic plan is crucial for insurance companies striving for long-term success. With the Insurance Company Strategic Plan Template, you can:

• Define clear and actionable goals to guide your company's growth and development
• Strategically manage risks to protect your company and its clients
• Increase customer acquisition and retention through targeted marketing strategies
• Drive innovation and product development to stay ahead of the competition
• Ensure compliance with ever-changing regulations and industry standards
• Optimize financial performance to achieve sustainable profitability

Main Elements of Insurance Company Strategic Plan Template

ClickUp's Insurance Company Strategic Plan template provides the essential tools to effectively manage and execute your company's strategic initiatives.

• Custom Statuses: Track the progress of each initiative with five different statuses, including Cancelled, Complete, In Progress, On Hold, and To Do.
• Custom Fields: Utilize eight custom fields such as Duration Days, Impact, Progress, and Team Members to capture important information about each initiative and easily track their development.
• Custom Views: Access six different views, including Progress, Gantt, Workload, Timeline, Initiatives, and Getting Started Guide, to gain a comprehensive overview of your strategic plan and monitor progress at a glance.
• Project Management: Leverage features like Gantt charts, workload management, and timelines to effectively plan and allocate resources, set realistic timelines, and ensure successful execution of your initiatives.

How to Use Strategic Plan for Insurance Company

If you're an insurance company looking to create a strategic plan, follow these six steps using the Insurance Company Strategic Plan Template in ClickUp:

1. Define your mission and vision

Start by clearly defining your insurance company's mission and vision. What is your ultimate purpose and what do you aspire to achieve? This will serve as the guiding principle for your strategic plan.

Use a Doc in ClickUp to outline and articulate your mission and vision statements.

2. Identify your target market

Determine your target market by analyzing demographics, customer needs, and market trends. Who are your ideal customers and what insurance products or services do they require? Understanding your target market will help you tailor your strategies to meet their specific needs.

Utilize custom fields in ClickUp to track and analyze data related to your target market.

3. Set strategic goals and objectives

Based on your mission, vision, and target market, establish strategic goals and objectives for your insurance company. What do you want to achieve in terms of market share, customer satisfaction, profitability, and growth? Make sure your goals are specific, measurable, attainable, relevant, and time-bound (SMART).

Create Goals in ClickUp to set and track your strategic objectives.

4. Develop action plans

Once you have your goals in place, develop action plans to outline the steps and initiatives needed to achieve them. Break down each goal into actionable tasks, assign responsibilities, and set deadlines. This will ensure that everyone on your team knows what needs to be done and when.

Utilize tasks and subtasks in ClickUp to create and assign action plans for each strategic goal.

5. Monitor progress and make adjustments

Regularly monitor the progress of your strategic plan and make adjustments as necessary. Track key performance indicators (KPIs) related to your goals, such as customer retention rate, premium growth, and claims ratio. If you're not on track to meet your objectives, identify areas for improvement and make necessary changes to your action plans.

Use Dashboards in ClickUp to visualize and monitor the progress of your strategic goals.

6. Communicate and engage your team

Ensure that your strategic plan is communicated to and understood by all members of your insurance company. Encourage open communication, collaboration, and engagement among your team members. Regularly update them on the progress of the plan and celebrate milestones and achievements along the way.

Utilize ClickUp's integrations, such as Email and AI-powered automations, to streamline communication and keep everyone informed.

By following these steps and utilizing ClickUp's features, you can create an effective and actionable strategic plan for your insurance company, setting you on the path to success.

Get Started with ClickUp’s Insurance Company Strategic Plan Template

Insurance companies can use this Insurance Company Strategic Plan Template to align their teams and ensure a clear roadmap for success in a competitive industry.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive strategic plan:

• Use the Progress View to track the progress of each strategic initiative and ensure alignment with company goals
• The Gantt View will help you visualize the timeline and dependencies of each initiative for effective project management
• Use the Workload View to balance resource allocation and ensure the team is not overwhelmed with tasks
• The Timeline View will provide a clear overview of milestones and deadlines for each strategic initiative
• The Initiatives View will help you track and manage individual initiatives and their progress
• Use the Getting Started Guide View to quickly get acquainted with the template and its features
• Organize initiatives into five different statuses: Cancelled, Complete, In Progress, On Hold, To Do, to keep track of progress
• Update statuses as you progress through initiatives to keep stakeholders informed of progress
• Monitor and analyze initiatives to ensure the strategic plan is effectively implemented and drives business growth.

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Five strategic themes defining the near future of insurance

EY Global Insurance Solutions Leader

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There are ample growth and transformation opportunities for insurers that take the right actions now..

• Purpose will be influential in shaping new value propositions, designing enhanced services and executing ESG strategies.
• New products, personalized experiences and empathetic communications can strengthen customer engagement.
• Carriers can tighten strategic focus, and simplify the business by engaging with private and alternative capital.

B y most accounts, the insurance industry has come through the COVID-19 pandemic in much better shape than many industry analysts believed possible in the immediate aftermath of the lockdown. Indeed, the attention of senior executives and boards is now focused on taking advantage of profoundly altered market conditions and new consumer needs.

Specifically, leaders are looking to spark growth and transform operations for a more digital and customer-centric future. The path forward will be defined largely by corporate purpose, with products designed to boost consumers’ financial well-being and protect against future shocks (including another pandemic). At the same time, the workforce will be refreshed with new skills and capabilities, leaner and more automated processes will become the norm, and capital will be deployed with more focus and creativity.

Purpose is also essential to shaping forward-looking strategies because of the disruptive societal trends – including climate change, geopolitical shifts and economic inequality – that are reshaping the insurance industry. As the   EY CEO Imperative frames the current landscape, “Planning to rebound to an old normal is not an option. CEOs must reimagine their strategies for long-term value creation.”

This article highlights five key strategic priorities and supporting actions, covering the full breadth of the business, where insurers can achieve meaningful performance gains and substantial cost improvements in the months and quarters to come. It serves as a follow-up to a similar piece we published more than a year ago, as the industry was just coming to terms with the full economic implications of the pandemic. Today, these themes remain closely intertwined and will continue to evolve, even as insurers prioritize growth in this changed market landscape. 

Bringing purpose to life

Purpose will guide the development of new products, management metrics and ESG strategies.

The pandemic’s massive financial impact on individuals, families and businesses sparked a great deal of conversation about the purpose of insurance. Many industry leaders saw an opportunity increase of the “mindshare” of insurance with consumers by finding ways to help contribute to global economic recovery and individual financial well-being.

The Environmental, Social and Governance (ESG) agenda has also shone a bright light on purpose relative to climate change, racial equality and other pressing societal issues. C-suites and boards must make sure the right ESG strategies are in place, as well as robust execution plans and appropriate metrics to track progress toward ESG goals. Metrics are particularly important to ensure inclusion into ESG funds and indexes that are capturing ever-larger shares of capital flows.

For many insurers, defining the right ESG strategy equates to finding the right balance between excluding high-volume carbon emitters and promoting the transition to a low-carbon economy. While some insurers have refused to underwrite policies for certain sectors and companies (e.g., oil and gas, mining), others are emphasizing investments in green energy, sustainable packaging and other businesses expected to grow in a greener economy.

We believe engaging with customers with new climate-related solutions can boost insurers’ growth. In commercial lines, such products would protect businesses against increased risk of flooding and promote adoption of carbon-reducing technologies. For consumers, future auto policies might include carbon offsets. The key is to embed purpose in underwriting processes, as well as in policies themselves.

Key actions for senior leaders and boards:

• Examine how your purpose aligns with changing customer needs and shifting market dynamics
• Define the right metrics to monitor the execution of ESG strategies and communicate progress to stakeholders
• Identify specific actions to embed purpose in operations and specific product features

Preparing the workforce with new skills and capabilities

Market conditions and the hybrid working world necessitate new employee experiences.

Remote working and hybrid working arrangements will permanently change how employees in insurance and every other industry do their jobs. Insurance leaders should seek to build on the digital collaboration capabilities that they instilled during the pandemic, even as they meet increased demand for flexibility regarding when and where employees work. Ongoing EY research clarifies what workers want and the importance of maintaining strong culture in the hybrid world.

What the insurance workforce does is also changing. The most important new capabilities are, to a large extent, the same as they were pre-COVID-19. Data science, beta underwriting and user experience design top the list. In general, however, insurers need people who think digitally and are comfortable working in agile fashion within multi-disciplinary teams. 

The “Great Resignation” provides a clear opportunity for insurers to refresh their workforce. With so many people changing jobs, insurers that can provide interesting and meaningful work, within a flexible employee experience, will gain an edge in attracting and retaining new talent. A clearly articulated purpose – e.g., protecting individuals and society from its greatest threats – can boost engagement with workers and consumers alike.

Insurers that have had the most success to date in setting up a flexible workforce experience have taken a data-driven approach in defining their policies. Many have embraced parallel working structures, where specific teams of workers that would benefit from in-person interactions are in the office at the same time. Others are seeking access to scarce talent via collaboration with insurtechs, joint ventures and outsourcing relationships. Such strategic sourcing can help insurers both manage labor costs and compete in the war for talent.

The ultimate goal is talent liquidity – the ability to seamlessly move workers around the business as needs dictate. But the “work from anywhere” world presents new risks and requirements relative to tax policy, social security schemes, immigration status, and pay and compensation. As difficult as it will be to achieve, talent liquidity represents a huge upgrade from yesterday’s more rigid org charts. It’s also necessary for insurers to establish and benefit fully from new business models, such as ecosystems. In other words, talent liquidity will soon be a competitive imperative, rather than the aspiration it is today.

• Define the top skills the organization will need to meet key strategic objectives during the next 18-36 months
• Assess how alternative sourcing strategies can provide access to the most in-demand skills and specialist expertise
• Ensure that purpose statements are included in recruiting materials

Enhancing consumer engagement

Customer-centricity comes to life with simpler products and richer experiences.

Perhaps the biggest COVID-19-driven change in insurance was the rapid shift to nearly all-digital operations – an eye-opening experience for an industry once thought to be slow-moving and resistant to change. Sustaining both a strong digital orientation and a relentless focus on consumer needs will be key to making the most of the clear growth opportunity.

The pandemic’s severe economic impacts on consumers worldwide provide ample motivation to upgrade product portfolios and value propositions around financial well-being. EY research shows customers are most interested in products that cover short-term costs (e.g., mortgage payments, credit card bills, tuition fees) in the event of lost income. Compared to many current policies, these are simpler products with targeted protections and clear value propositions. Insurers that make them easy to find and purchase online have an opportunity to connect with a currently underserved segment.

Here again, purpose plays a role. That is, insurers that link their offerings to the outcomes and protections consumers want (e.g., financial well-being) stand to gain an edge in building long-term, even lifelong, relationships. Looking ahead, new products, with more flexible features, and stronger digital experiences are necessary to enable the business model transformations many insurers want to enact. Stronger ecosystem business models will also become the primary platform for customer engagement in the future.

• Develop affordable and accessible solutions to engage previously underserved segments (including younger consumers) with offerings to improve financial well-being
• Expand ecosystems to offer broader product options and richer, more personalized experiences for customers
• Ensure customer communications build trust through empathy and a warm, human tone

Digitizing for cost optimization and capital efficiency

Simpler, leaner and more operations promote scalability, agility and future innovation.

More digital operations also present opportunities to achieve badly needed cost efficiency. The ongoing pressure on costs, particularly in competitive and commoditized lines of business, shows no sign of letting up. A flexible and highly automated process environment that can easily scale up or down as demand fluctuates is essential to long-term financial success.

Capital management has become a critical capability for many insurers. Freeing funds to invest in digital transformation is a top priority, because both the front and back offices need optimizing. There is a virtuous circle effect to digitization efforts. While substantial investments are often necessary, they can deliver outstanding returns in the form of immediate-term cost savings (along with experience enhancements and process simplification). In turn, those savings can be invested in new product development and increased personalization that take advantage of the leaner and more automated processing environments. Innovation follows cost efficiency in this sense.

Given the upside, it’s no wonder that CEOs are focused on digitization. Nearly two-thirds, or 63%, of respondents in the global EY CEO Imperative survey, said that accelerating technology and digital innovation is having the greatest impact on their company.

Another important dimension of capital management is the divestment of non-core businesses. We have seen many high-profile divestments during the last few years, even by the most successful carriers and brands. The goal is usually to simplify the business and tighten the strategic focus, which helps reduce costs and improve capital efficiency.

• Build a business case for automation and digitization in the back office and define how much capital can be unleased for redeployment to other parts of the business
• Rigorously assess the product portfolio to identify the most likely candidates for divestment
• Review internal capabilities and functions to determine which are truly core and which can be best managed by third parties

Navigating through structural change and realignment

“Alternative” capital and macroeconomics are driving business simplification and strategic focus.

The current matrix of opportunities and risks is being shaped by large-scale structural change and realignment. The rise of alternative capital sources and the pronounced trend away from globalization are the most powerful underlying forces.

Alternative capital – a misnomer given that it has been mainstream for quite some time now – continues to flow into the industry. The rigor of such capital in returns-seeking is influencing board and senior management agendas across the industry, particularly relative to strategic focus and divesting non-core businesses. Geographic focus is one manifestation. The era of “flag planting” is well and truly over, as dominance in a few markets is clearly more beneficial than having a broader presence across global regions.

Insurers are engaging capital sources in more creative ways, too. Some carriers are adopting unique entity models. Others are seeking partners to fund digital transformation and launch new business models and even new brands. More consolidation and divestment are to be expected as the industry seeks to recover from a decade of slow growth and the pandemic’s impacts.  

One can’t speak of capital flows without mentioning shifting regulatory regimes and accounting change. Even if the pandemic had never occurred, insurers were facing significant change in how they measure and report performance. Senior leaders also need to reconsider the narratives by which they communicate with investors. Within the next year, management must be ready to explain the meaning of new IFRS 17 and LDTI metrics in ways investors can understand and that provide context around insurers’ growth strategies.

• Conduct a full scan of the insurtech landscape to determine the most promising candidates for collaborations, joint ventures and/or acquisition
• Identify the optimal entity structures and capital strategies to achieve long-term strategic objectives
• Shape a clear narrative for capital markets so they understand performance under new metrics and reporting regimes

As subscription models become more common across industries, insurers must take stock of the opportunities and risks – from greater growth and stronger customer relationships, to the potential downside of new competitors. As with any transformation effort, developing the right data and technology capabilities is vital to effectively implementing such models.

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Boards and the C-Suite can take action to guide purpose-led programs that extend beyond the pandemic response to help drive societal wellbeing and growth.

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Sample Insurance Business Plan

Writing a business plan is a crucial step in starting an insurance company. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring insurance company owners, having access to a sample insurance business plan can be especially helpful in providing direction and gaining insight into how to draft their own insurance business plan.

Download our Ultimate Insurance Business Plan Template

Having a thorough business plan in place is critical for any successful insurance venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. An insurance business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The insurance business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your insurance company as Growthink’s Ultimate Insurance Business Plan Template , but it can help you write an insurance business plan of your own.

Insurance Business Plan Example – SafeGuard Assurance

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to SafeGuard Assurance, located in the heart of Fresno, CA. As a novel insurance provider, we are dedicated to understanding and serving the unique needs of our local residents and businesses. Our comprehensive array of products and services includes Insurance Coverage Evaluation, Policy Issuance and Management, Claims Processing and Settlement, alongside Risk Management Consulting and Customer Support and Education. With a foundation built on excellence and a deep understanding of the insurance landscape, we are committed to becoming the premier choice for those seeking reliable and comprehensive coverage. Our strategic positioning within Fresno allows us to make a significant impact in our community, setting us apart as an ideal partner for insurance solutions.

Our success is underpinned by several key factors. The invaluable experience of our founder, who has previously steered an insurance enterprise to success, provides us with a foundation of proven strategies and insights. Our superior insurance expertise enables us to deliver unmatched service and value to our clients, distinguishing us from our competitors. Since launching as an S Corporation on January 4, 2024, we’ve achieved significant milestones, including developing our brand identity, securing a prime headquarters location, and more. These accomplishments mark our journey towards becoming Fresno’s leading insurance provider.

The insurance industry in the United States, with total premiums exceeding $1.3 trillion in 2020, plays a crucial role in the economy and financial stability. Projected to grow at an annual rate of around 3.5% from 2021 to 2025, the industry’s expansion is driven by increasing awareness of insurance importance, technological advancements, and evolving customer needs. For SafeGuard Assurance, this growth presents an opportunity to leverage industry trends like digital platforms and personalized policies to offer tailored insurance solutions. Located in Fresno, CA, our company is well-positioned to capitalize on these developments, establishing a competitive presence in the expanding insurance market.

SafeGuard Assurance targets Fresno’s local residents and small to medium-sized businesses, aiming to meet their diverse insurance needs with comprehensive solutions. Our strategy focuses on creating customized offerings for young professionals, established families, agricultural businesses, and real estate investors, ensuring access to suitable coverage. By catering to specific niche markets within Fresno, we plan to address the unique insurance requirements of these segments, providing valuable protection and peace of mind, and building a strong, loyal customer base in the process.

Our main competitors in the Fresno area include Sara Sordi Insurance Services, known for personalized customer service and local market knowledge; Kurt Sieve – State Farm Insurance Agent, which combines local service with the backing of a national brand; and Gennock Insurance, recognized for its specialization and affordable pricing strategy. Despite the strengths of these competitors, SafeGuard Assurance’s unparalleled insurance expertise and commitment to leveraging the latest technology provide us with a competitive advantage. Our ability to offer customized solutions and a customer-centered digital approach sets us apart, ensuring we meet the evolving needs of our clients more effectively than our competitors.

SafeGuard Assurance provides a comprehensive suite of services, including Insurance Coverage Evaluation, Policy Issuance and Management, Claims Processing and Settlement, Risk Management Consulting, and Customer Support and Education. Our competitive pricing and commitment to excellence position us as a trusted partner in our clients’ financial security. Our promotional strategy encompasses a blend of online marketing, traditional advertising, email campaigns, community engagement, and referral programs. By leveraging these methods, we aim to attract and retain customers in Fresno, CA, and establish SafeGuard Assurance as a leader in the insurance industry.

To ensure our success, SafeGuard Assurance will focus on key operational processes including customer inquiries and support, policy management, claims processing, financial management, regulatory compliance, marketing and sales, human resources and training, and technology and data management. Our upcoming milestones include securing necessary licenses, establishing our product lines, launching the company, forming strategic partnerships, implementing a risk management system, recruiting a skilled team, achieving operational efficiency, reaching $15,000/month in revenue, establishing a strong customer service reputation, and evaluating and adjusting our business strategies accordingly.

Under the leadership of Grace Roberts, our President, SafeGuard Assurance boasts a management team with the expertise to successfully execute our business plan. Grace’s extensive experience in the insurance industry, marked by strategic growth and a commitment to customer satisfaction, provides us with the guidance needed to achieve our long-term objectives. Her deep understanding of market dynamics, regulatory compliance, and risk management is instrumental in fostering a culture of excellence and integrity within our organization.

Welcome to SafeGuard Assurance, a new insurance provider serving the vibrant community of Fresno, CA. As a local insurance company, we understand the unique needs of our residents and businesses, setting us apart in a region where high-quality local insurance options have been limited. Our commitment to excellence and deep understanding of the insurance landscape positions us as a premier choice for those seeking reliable and comprehensive coverage.

At SafeGuard Assurance, our array of products and services is carefully designed to meet the diverse needs of our customers. We specialize in Insurance Coverage Evaluation, ensuring our clients receive the most appropriate and cost-effective coverage. Our seamless Policy Issuance and Management processes are designed to provide peace of mind, while our Claims Processing and Settlement services are efficient and customer-focused. Recognizing the importance of proactive measures, we also offer Risk Management Consulting to help our clients minimize potential risks. Moreover, we are dedicated to Customer Support and Education, ensuring our clients are well-informed and confident in their insurance decisions.

Rooted in the heart of Fresno, CA, SafeGuard Assurance is strategically positioned to serve and make a significant impact within our local community. Our deep understanding of the local market dynamics, paired with our commitment to personalized service, makes us an ideal partner for individuals and businesses in Fresno.

Our ability to succeed is rooted in several key factors. Firstly, our founder brings invaluable experience from successfully running a previous insurance enterprise, ensuring that SafeGuard Assurance is built on a foundation of proven strategies and insights. Additionally, our superior insurance expertise distinctly sets us apart from our competitors, enabling us to provide unmatched service and value to our clients.

Since our inception on January 4, 2024, SafeGuard Assurance has made significant strides as a S Corporation. We’ve accomplished several key milestones, including the creation of our distinctive logo, the development of our brand name, and securing a prime location for our headquarters. These achievements mark the beginning of our journey towards becoming a leading insurance provider in Fresno, CA.

The insurance industry in the United States is a massive market, with total premiums reaching over $1.3 trillion in 2020. This figure represents the size and importance of the industry in the country, providing a wide range of coverage options for individuals, businesses, and organizations. With such a substantial market value, the insurance industry plays a crucial role in the overall economy and financial stability.

The insurance market in the United States is expected to continue growing in the coming years, with a projected annual growth rate of around 3.5% from 2021 to 2025. This growth is driven by various factors, including an increasing awareness of the importance of insurance coverage, technological advancements in the industry, and evolving customer needs. As the market expands, there will be more opportunities for insurance companies to offer innovative products and services to meet the changing demands of consumers.

Recent trends in the insurance industry, such as the rise of digital platforms, personalized policies, and a focus on customer experience, bode well for SafeGuard Assurance, a new insurance company serving customers in Fresno, CA. By leveraging these trends and offering tailored insurance solutions to meet the specific needs of individuals and businesses in the area, SafeGuard Assurance can position itself as a competitive player in the market. With the industry’s overall growth and evolving landscape, there is ample room for SafeGuard Assurance to thrive and establish a strong presence in the insurance sector.

Below is a description of our target customers and their core needs.

Target Customers

SafeGuard Assurance will target local residents in its initial customer base, focusing on providing comprehensive insurance solutions that meet the diverse needs of this community. The company will tailor its offerings to suit the unique requirements of Fresno’s residents, ensuring that everyone from young professionals to established families has access to suitable coverage. This strategy is central to building a strong, loyal customer base in the area.

Aside from local residents, SafeGuard Assurance will also aim to serve small and medium-sized businesses within Fresno. This segment represents a significant opportunity for growth, as these entities seek to protect their assets, employees, and potential liabilities. By offering customized insurance packages that cater specifically to the business sector, SafeGuard Assurance will position itself as a key partner in the local economy’s health and resilience.

Furthermore, SafeGuard Assurance will target specific niche markets within the broader Fresno community, such as agricultural businesses and real estate investors. These sectors have unique insurance needs that are not always adequately met by larger, more generic insurers. By developing specialized insurance products for these niches, SafeGuard Assurance will tap into underserved markets, offering them valuable protection and peace of mind.

Customer Needs

SafeGuard Assurance meets the critical needs of residents by offering high-quality insurance services designed to provide peace of mind and financial stability in times of need. Customers can expect personalized attention and products tailored to their unique circumstances, ensuring that their coverage matches their lifestyle and risk profile. This commitment to excellence sets the foundation for a trusted relationship between the insurer and the insured.

Moreover, SafeGuard Assurance goes beyond traditional insurance offerings by incorporating comprehensive support and guidance. Customers can rely on an experienced team of professionals who are readily available to assist with claims, answer questions, and provide advice on how to best protect their assets. This proactive approach to customer service ensures that individuals feel supported and valued throughout their insurance journey.

Additionally, the company addresses a broader spectrum of customer needs by ensuring ease of access to information and services. Through a user-friendly online platform and mobile application, customers can manage their policies, make payments, and access important documents with ease. This convenience empowers customers, allowing them to take control of their insurance experience in a way that fits their busy lifestyles.

SafeGuard Assurance’s competitors include the following companies:

Sara Sordi Insurance Services offers a comprehensive range of insurance products, including home, auto, life, and business insurance. They tailor their services to meet the unique needs of each client, ensuring personalized coverage options. Price points vary depending on the type and extent of coverage desired by customers, but they are competitive within the Fresno market. The firm operates primarily in the Fresno area, focusing on local residents and businesses. This geographic concentration allows them to develop strong relationships with their clients and understand the specific risks and needs associated with the region. Sara Sordi Insurance Services segments its customer base primarily by individual and small to medium-sized businesses, catering to a broad demographic that values personalized service and local expertise. A key strength of Sara Sordi Insurance Services is their personalized customer service and local market knowledge. However, their focus on Fresno may limit their appeal to customers outside this geographic area, representing a potential weakness in their business model.

Kurt Sieve – State Farm Insurance Agent specializes in a wide array of insurance products such as auto, home, property, business, life, and health insurance. They leverage the strong brand and comprehensive support services of State Farm to offer customers in Fresno reliable and diverse coverage options. Pricing is competitive and often bundled for customers seeking multiple types of insurance, providing cost-saving opportunities. The agency’s location in Fresno positions it well to serve the local community, but as part of the broader State Farm network, it can leverage national resources and expertise. This enables Kurt Sieve to serve a diverse range of customers, from individuals to families and businesses, catering to their varied insurance needs. A significant strength of Kurt Sieve – State Farm Insurance Agent is the blend of local personalized service with the backing of a nationally recognized brand. However, as part of a larger corporation, there might be less flexibility in customizing policies to the unique needs of certain clients, potentially a weakness for those seeking highly tailored insurance solutions.

Gennock Insurance provides specialized insurance products focusing on auto, home, and commercial insurance. They offer competitive pricing models that are designed to be affordable for a wide range of customers, including discounts for bundling multiple policies. Their services are aimed at ensuring clients receive the best possible coverage for their specific situation. Operating within the Fresno area, Gennock Insurance has a strong understanding of the local market dynamics and insurance requirements. This local focus allows them to serve individuals and businesses within Fresno effectively, tailoring their offerings to meet the community’s needs. The company’s key strength lies in its specialization and affordable pricing strategy, making it an attractive option for price-sensitive customers. However, their narrower focus on auto, home, and commercial insurance might limit their appeal to customers seeking a broader range of insurance products under one roof, which could be viewed as a weakness.

Competitive Advantages

Our competitive edge in the insurance market is significantly sharpened by our unparalleled insurance expertise. We understand that navigating through insurance policies can be overwhelming for our customers. That’s why we equip our team with extensive training and up-to-date knowledge about the insurance industry. This ensures that we not only guide our customers to the best options that suit their needs but also simplify the complex terms and conditions of insurance policies. Our expertise allows us to tailor unique solutions for our customers, making us a preferred choice over competitors who may offer generic services.

Additionally, our commitment to leveraging the latest technology in our operations bestows upon us another competitive advantage. By integrating advanced tech solutions, we can offer faster service, more accurate policy management, and enhanced customer service. This digital approach not only streamlines our processes but also provides our customers with an easy and efficient way to manage their policies, file claims, and get support. It’s this forward-thinking and customer-centered approach that sets us apart in the Fresno market, ensuring that our customers receive not just insurance, but assurance of safety and security. Our aim is to exceed expectations, providing a service that’s not just about policies, but about people.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

SafeGuard Assurance emerges as a key player in the insurance industry, offering a comprehensive suite of services designed to meet the diverse needs of its clientele. At the heart of its offerings is Insurance Coverage Evaluation, a critical service priced on average at $150. This service enables clients to understand their current insurance coverage comprehensively, ensuring they are neither underinsured nor overpaying for unnecessary coverage. This personalized evaluation aids in making informed decisions regarding insurance investments, aligning coverage with the client’s specific needs and risk profile.

Following the evaluation, SafeGuard Assurance excels in Policy Issuance and Management, with services starting at an average cost of $200. This encompasses the drafting, issuance, and ongoing management of insurance policies. Tailored to meet individual or business requirements, this service ensures that policies remain relevant and up-to-date with the client’s evolving needs, offering peace of mind and security against unforeseen events.

Claims Processing and Settlement is another critical service provided, with fees averaging around $100 per claim. This service streamlines the typically cumbersome process of filing and settling claims, offering clients a hassle-free experience. SafeGuard Assurance prioritizes efficiency and transparency in this process, ensuring clients receive the compensation they are entitled to in a timely manner, thus mitigating the financial impact of accidents, damages, or losses.

Risk Management Consulting is offered at an average price of $250, reflecting its comprehensive nature. This service involves a detailed analysis of the client’s exposure to potential risks, followed by the development of strategies to minimize or mitigate these risks. By identifying vulnerabilities and recommending protective measures, SafeGuard Assurance plays a crucial role in safeguarding the client’s assets and financial health against potential threats.

Lastly, Customer Support and Education stand as core components of SafeGuard Assurance’s offerings, with services provided at no additional cost. This encompasses ongoing support for any questions or concerns clients may have regarding their policies, as well as educational resources and workshops designed to enhance their understanding of insurance products, risk management, and best practices for securing their assets. This commitment to customer education and support underscores SafeGuard Assurance’s dedication to empowering clients, ensuring they are well-informed and confident in their insurance choices.

In conclusion, SafeGuard Assurance offers a broad spectrum of services tailored to protect and educate its clients, ensuring they are well-equipped to navigate the complexities of the insurance landscape. With competitive pricing and a commitment to excellence, SafeGuard Assurance positions itself as a trusted partner in securing the financial future of individuals and businesses alike.

Promotions Plan

SafeGuard Assurance takes a comprehensive approach to attracting customers through a variety of promotional methods, with a strong focus on online marketing. Understanding the digital landscape allows this company to effectively reach its target audience in Fresno, CA, and beyond. Online marketing tactics include search engine optimization (SEO) to ensure that SafeGuard Assurance appears at the top of relevant search results, making it easier for potential customers to find their services. Additionally, the company will leverage social media platforms to engage with the community, share valuable insurance-related content, and advertise their services directly to users based on their interests and demographics.

Beyond online marketing, SafeGuard Assurance will also invest in traditional advertising methods. This includes placing ads in local newspapers and magazines to reach those in the Fresno area who may prefer print media. Radio spots will also serve as an effective tool to reach a broader audience during peak listening times, conveying the value and reliability of SafeGuard Assurance’s offerings.

Email marketing campaigns will be another cornerstone of the promotional strategy. By collecting email addresses through their website and in-person interactions, SafeGuard Assurance will send out regular newsletters, special offers, and updates about their services. This direct line of communication will help to build and maintain relationships with current and prospective customers alike.

Community engagement is also a critical component of the promotional strategy. SafeGuard Assurance will participate in local events, sponsor community projects, and host informative seminars about insurance and financial planning. These efforts will not only increase brand visibility but also position SafeGuard Assurance as a trusted and integral part of the Fresno community.

Referral programs will incentivize current customers to refer friends and family, effectively turning satisfied customers into brand ambassadors. This word-of-mouth marketing is invaluable and will be supported by offering discounts or special offers for both the referrer and the referee.

In conclusion, SafeGuard Assurance employs a multi-faceted promotional strategy that combines the power of online marketing with traditional advertising, email campaigns, community engagement, and referral programs. These efforts are designed to not only attract customers in Fresno, CA, but also to build lasting relationships and establish SafeGuard Assurance as a leader in the insurance industry.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of SafeGuard Assurance, there are several key day-to-day operational processes that we will perform.

• Handle customer inquiries promptly via phone, email, and social media platforms to maintain high customer satisfaction.
• Provide detailed information on insurance products and services to potential and existing customers.
• Resolve any issues or complaints in a timely and efficient manner.
• Process new insurance applications, including verification of information and risk assessment.
• Update and modify existing policies as per customer requests or upon renewal.
• Ensure all policy documents are accurate and dispatched to customers promptly.
• Receive and review insurance claims to determine validity and coverage.
• Coordinate with assessors and claimants to gather necessary documentation and evidence.
• Process approved claims for payment and inform claimants of any decisions or requirements.
• Monitor daily financial transactions, including premium payments and claim disbursements.
• Prepare and analyze financial reports to ensure financial stability and profitability.
• Manage budgeting and forecasting to support strategic decision-making.
• Stay updated on insurance laws and regulations to ensure company compliance.
• Prepare and submit required reports and documents to regulatory bodies.
• Implement internal policies and procedures to meet or exceed regulatory standards.
• Develop and execute marketing strategies to attract new customers and retain existing ones.
• Conduct market research to identify customer needs and adjust product offerings accordingly.
• Collaborate with sales teams to set sales targets and strategies to achieve them.
• Recruit, hire, and onboard new staff to fill key positions within the company.
• Conduct regular training sessions for employees to enhance their skills and knowledge.
• Manage employee performance and development to maintain a motivated and efficient workforce.
• Implement and maintain IT systems to support operations, including customer management and financial systems.
• Ensure data security and privacy measures are in place to protect sensitive customer information.
• Analyze data to identify trends and insights for improving service delivery and business performance.

SafeGuard Assurance expects to complete the following milestones in the coming months in order to ensure its success:

• Obtain Necessary Licenses and Permits : Secure all required state and local licenses to legally operate as an insurance provider in Fresno, CA. This step is fundamental and ensures that the company operates within legal boundaries, establishing trust with potential customers and partners.
• Establish Insurance Product Lines : Finalize the types of insurance products SafeGuard Assurance will offer, such as auto, health, home, and life insurance. Tailoring product offerings to meet the specific needs of the Fresno community will be key to attracting and retaining customers.
• Launch Our Insurance Company : Officially open for business. This includes launching marketing campaigns to build brand awareness, opening the customer service lines, and ensuring the company’s website and digital channels are fully operational for quotes, purchases, and claims processing.
• Build Strategic Partnerships : Form alliances with local businesses, such as car dealerships, real estate agencies, and healthcare providers, to cross-promote services and products. These partnerships can enhance customer base growth and reinforce market presence.
• Implement a Robust Risk Management System : Develop a comprehensive system for assessing and managing the risks associated with the insurance policies offered. This will help in pricing products correctly, avoiding fraudulent claims, and ensuring financial stability.
• Recruit and Train a Skilled Team : Hire a team of professionals who are not only skilled in insurance but are also familiar with the Fresno market. Training should focus on customer service, claims processing, and compliance with insurance regulations to ensure a high level of service quality.
• Achieve Operational Efficiency : Streamline operations through technology and process improvements to reduce costs, improve customer experience, and enhance claim processing speed. Operational efficiency will be crucial for profitability and competitiveness.
• Get to $15,000/Month in Revenue : This financial milestone will be a strong indicator of market acceptance and the effectiveness of SafeGuard Assurance’s business strategies. Achieving this milestone will also provide the necessary cash flow to support ongoing operations and future growth initiatives.
• Establish a Strong Customer Service Reputation : Develop a reputation for excellent customer service by efficiently handling claims, inquiries, and complaints. Positive word-of-mouth and customer reviews can significantly influence new business and retention rates.
• Evaluate and Adjust Business Strategies : Regularly review business performance against goals, market trends, and competitive activities. Be prepared to adjust strategies, including marketing, product offerings, and customer service approaches, to ensure continued growth and success.

SafeGuard Assurance management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Grace Roberts, President

With a proven track record of steering companies towards success, Grace Roberts stands as a beacon of leadership and innovation within the insurance industry. Her tenure as the head of a previous insurance company is marked by strategic growth, operational excellence, and an unwavering commitment to customer satisfaction. Grace’s extensive experience in navigating the complex landscape of insurance has endowed her with a deep understanding of market dynamics, regulatory compliance, and risk management. These skills are not only pivotal in her role as President of SafeGuard Assurance but also instrumental in guiding the company towards achieving its long-term objectives and fostering a culture of excellence and integrity.

To reach our growth goals, SafeGuard Assurance requires $322,000 in funding. This investment will be allocated towards capital investments such as location buildout, furniture, equipment, computers, and non-capital investments including working capital, initial rent/lease, staff salaries for the first three months, initial marketing and advertising, supplies, and insurance. This funding is crucial for establishing our operations, ensuring we can effectively serve the Fresno community and achieve our objectives.

Financial Statements

Balance sheet.

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Income Statement

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Cash Flow Statement

[insert cash flow statement]

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Insurance Company Business Plan

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

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

If yes, then what are you waiting for?

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

Industry Overview

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

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

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

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

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Things to Consider Before Writing Your Insurance Company Business Plan

Know the industry.

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

Get the necessary licenses and permits

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

Know your audience

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

Promote your business

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

Chalking out Your Business Plan

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

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

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

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

Insurance Company Business Plan Outline

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

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

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

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

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Strategic Planning in Insurance

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• Samuel Msheliza  

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Insurance companies now face many uncertainties. During the 1970s and 1980s, insurance markets have experienced dramatic changes in the hitherto stable environment in which they operate, including greater price competition, deregulation of certain aspects of their operations, the advent and growth of consumerism and the development by large corporations of other methods of managing risk. New sources of competition, such as banks and other financial institutions, now offer services which were traditionally performed by insurance companies. In addition, fundamental changes in the macroeconomic environment create problems which management in insurance have to consider in their long-range decisions.

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Aylor, C.C. and J.D. Cummins (1985) ‘Strategic Planning in the US Property-Liability Industry’, in J.D. Cummins (ed.), Strategic Planning and Modelling in Property-Liability Insurance (Hingham MA: Kluwer-Nijhoff Publishing).

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Wright, M. and S.R. Diacon (1988) ‘Regulation of the Marketing of Long-Term Insurance’, in N. Dyer and T. Watkins (eds), Marketing Insurance: A Practical Guide , 2nd edn (Brentford, Middlesex: Kluwer Publishing).

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Msheliza, S. (1990). Strategic Planning in Insurance. In: Diacon, S. (eds) A Guide to Insurance Management. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-07495-2_1

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• About the IAIS

Strategic Plan and Roadmap

The IAIS’ work is guided by its 2020-2024 Strategic Plan. Integral to the strategy are the high-level goals (HLGs) which specify focus areas for the Association’s efforts and leverage the potential for effective collaboration with partner organisations, other standard-setting bodies and industry stakeholders.

Specific areas of focus across the HLGs are the finalisation and implementation of post-crisis reforms, ongoing monitoring and assessment of key risks, addressing accelerating global trends that have the potential to reshape the business of insurance in the coming years, and implementation assessment and supervisory capacity-building activities.

To operationalise its strategy, the IAIS develops an annual work programme, known as the Roadmap. The Roadmap prioritises IAIS projects and activities over a two-year period but undergoes annual adaptations to align with newly identified risks and trends.

High-level goals from the IAIS Strategic Plan 2020-2024

In 2023 we initiated the development of our next five-year Strategic Plan 2025-2029. Valuable input from members and stakeholders allowed us to reflect on past achievements and shape a plan for the future, which builds on the intensive standard setting of recent years by increasingly focusing on the effective implementation of agreed standards. At the same time, our activities will continue to adapt to the changing environment, including areas such as climate risk, digital innovation and protection gaps. Jonathan Dixon, IAIS Secretary General

Key documents

Iais roadmap 2024 25 jan 2024, 2020-2024 strategic plan 13 jun 2019.

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Insurance Insights

Main heading component (if no main heading is visible immediately below this text, please delete it and use a clear float instead), the fca's business plan 2024/2025 and potential impact on the insurance sector, the fca recently published its business plan for 2024/25, which outlines the work it will undertake in the next year to achieve its 3-year strategy launched in april 2022. in that strategy, the fca outlined its expectations for regulated firms and aimed to deliver improved outcomes by becoming a more assertive, data-driven regulator..

This year's Business Plan acknowledges the current economic challenges including high interest rates, persistent inflation, global financial risks and geopolitical uncertainties. The UK insurance industry, in particular, has been significantly affected by these challenges, leading to increased claims costs and subsequently higher premiums. Insurers have also faced intensified regulatory scrutiny in terms of their operational resilience and risk management amidst these economic headwinds.

Despite the economic environment, the FCA remains ambitious in meeting its strategic goals and firms should anticipate assertive FCA supervision, especially on consumer protection and enforcement of financial crime. This article highlights aspects of the Business Plan that are particularly relevant to the UK insurance sector.

Strategic themes and commitments

The Business Plan continues to be based on the three strategic themes of the FCA's Strategy:

• reducing and preventing serious harm;
• setting and testing higher standards; and
• promoting competition and positive change.

These themes are further supported by 13 public commitments in the Business Plan, including priority commitments such as: (i) reducing and preventing financial crime; (ii) putting consumers' needs first; and (iii) strengthening the UK's position in global wholesale markets.

The Business Plan omits 'preparing financial services for the future' as a priority commitment, unlike the previous year's plan. This is because the FCA believes substantial progress has been made through the Smarter Regulatory Framework, with Solvency UK set for full implementation by year-end, fulfilling this commitment for the UK insurance sector.

The commitments particularly relevant to insurers are:

• Commitment 1: Reducing and preventing financial crime

The FCA's Business Plan highlights its strong commitment to combatting financial crime. In particular, the regulator is focused on addressing the rise of investment fraud and authorised push payment scams, which involve victims being deceived into making payments to fraudsters. To achieve this, the FCA will actively evaluate firms' anti-money laundering (AML) and sanctions systems and controls, with the aim of reducing instances of money laundering throughout regulated entities. Given this increased scrutiny, senior managers responsible for risk and operations within insurance firms should closely monitor the FCA's growing attention to AML practices and ensure robust measures are in place to prevent financial crime.

The FCA also plans to enhance its systems to leverage intelligence and data more effectively to target financial crime. This strategic shift towards data-driven approaches may require insurers to strengthen their data infrastructure in order to meet regulatory expectations and may involve making additional investments in technology and training.

• Commitment 2: Putting consumers' needs first

The FCA's Business Plan places significant emphasis on consumer protection through ongoing monitoring of firms' adherence to the Consumer Duty. The FCA has recently announced a two-stage review scheduled for this summer which will involve the FCA contacting around 400 firms to evaluate their level of support for consumers, with a particular focus on vulnerable customers. During the initial stage, the FCA aims to assess the quality of customer service across various industries, including the supervisory areas of focus outlined in the Business Plan.

Insurers should therefore be prepared for potential FCA evaluations of all customer interactions, encompassing areas such as product value, fair pricing, and claims and complaint handling processes. We anticipate there will be a specific emphasis on the timeliness and efficiency of claim responses, as well as the accuracy of claim assessments. If not already in progress, insurers should consider investing in staff training and implementing systems to effectively identify and assist vulnerable customers, recognising that this is a crucial aspect of the Consumer Duty.

• Commitment 3: Strengthening the UK’s position in global wholesale markets

Promoting effective competition is a key focus area for the FCA to benefit both UK consumers and the UK's competitiveness in international markets, aligning with the FCA's secondary objective under the Financial Services and Markets Act 2023 reforms. To encourage innovation, the FCA aims for regulatory clarity and proportionality, so the UK remains an attractive market where innovation flourishes. Existing FCA initiatives like the Regulatory Sandbox, Digital Sandbox, and Innovation Pathways are already designed to assist firms to set up innovative businesses.

The FCA's continued focus on innovation should not only help insurtechs but also enable insurers to partner with them to access technologies that meet certain FCA regulatory requirements, for example, around 'demands and needs' which may enable more personalised insurance products.

• Commitment 8: Environmental, social and governance (ESG) priorities

The FCA's Business Plan underscores its commitment to promoting ESG considerations within the financial sector, with a particular focus on achieving net-zero emissions. This may translate to an expansion of the existing FCA Sustainability Disclosure Requirements (SDRs) and Investment Labels, including the anti-greenwashing rule. While these requirements currently apply to a limited set of FCA firms and UK asset managers, insurers should be alert to the potential for a market-wide extension.

To proactively manage this evolving landscape, insurers are advised to stay informed about the potential extension of ESG regulations and anticipate the need for more comprehensive ESG reporting, compliance, and data systems. This preparation should encompass not only internal operations but also extend throughout investment portfolios.

• Commitment 9: Shaping digital markets to achieve good outcomes

The FCA will continue to take a pro-innovation and technology-agnostic approach to ensure that the significant benefits of technology are captured, and the risks are appropriately managed. Over the next 12 months, the FCA will continue to assess the impact of AI technologies and investigate digital customer journeys and 'sludge practices'. These practices make switching providers, making claims and/or raising complaints unnecessarily difficult.

Insurers should therefore ensure that their claims and complaint processes are streamlined and do not deter customers from exercising their rights. Insurers should also consider evaluating the use of AI across all business functions to identify and address any potential for bias or discrimination and ensure compliance with both FCA requirements and the Equality Act 2010.

• Commitment 12 – Minimising the impact of operational disruptions

The FCA's Business Plan highlights growing concerns about cyber threats and operational risks facing the financial sector. To ensure firms can withstand disruptions, new operational resilience requirements will take effect on March 31, 2025. These requirements aim to prevent critical business services from causing "intolerable harm" to consumers and markets during disruptions.

• Commitment 13 - Improving oversight of Appointed Representatives

The FCA is intensifying its oversight of Appointed Representatives (ARs). This focus stems from concerns that some authorised firms (principals) are not adequately supervising their ARs, potentially exposing consumers to mis-selling, misleading information, and inadequate protection. The Business Plan makes it clear that the FCA will continue to strengthen its scrutiny of principals as they appoint ARs and will continue its assertive supervision of high-risk principals.

The FCA will leverage data from updated Gateway forms, new regulatory returns, and a comprehensive AR dataset to identify potential issues. Insurers using ARs should therefore evaluate their current procedures for overseeing ARs and maintain open communication with ARs to ensure they understand and adhere to FCA rules.

The FCA's Business Plan for 2024/25 indicates heightened regulatory expectations for the UK insurance sector, with a focus on consumer protection, market integrity, and innovation. Insurers are also likely to experience the FCA's assertive supervision and enforcement in the FCA's stated focus areas, particularly money laundering and compliance with the Consumer Duty.

Insurers, insurance intermediaries and ARs would be well-advised to ensure their systems and controls are enhanced accordingly in advance of any potential regulatory scrutiny. Engaging with regulatory updates, investing in technology, and enhancing internal systems and controls will be important for insurers to navigate the FCA's increasing oversight. Where areas of improvement are identified, firms should consider undergoing a full assessment of required remediation (including any required regulator engagement). This proactive approach demonstrates commitment to addressing issues before regulatory scrutiny and aligns with the FCA's desired outcomes.

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Developing an effective M&A blueprint for insurers

At its core, programmatic M&A  is not a volume play; it’s a strategy for systematically acquiring small to midsize businesses, services, and capabilities and for effectively integrating them as new businesses or capabilities. Companies that adopt this approach to deal making , including a select group of insurers in both the life and property and casualty (P&C) sectors, have generated superior excess TSR by focusing on a series of smaller acquisitions to diversify product offerings or add new capabilities—rather than traditional financial-sector M&A goals that emphasize building scale.

About the authors

This article is a collaborative effort by Alex D’Amico , Oliver Engert , Jay Gelb , Sean O’Connell , Kurt Strovink , and Liz Wol , representing views from McKinsey’s Insurance and Strategy & Corporate Finance Practices.

It’s an approach insurers should consider. Deal making in the sector is likely to be brisk in the coming years as insurers seek to grow and diversify their earnings. Life insurers face ongoing challenges to sustaining growth in core life and annuity businesses; they also remain focused on improving ROE profiles by divesting or reinsuring legacy blocks. Meanwhile, P&C carriers are likely to seek bolt-on deals of companies that enhance their presence in growth markets and offer attractive cross-cycle ROE.

To support a programmatic approach to M&A, acquirers need to canvass a large number of potential acquisitions—as many as two to three times more than they did several years ago. But in our experience, many insurance carriers are facing that volume of activity with little more than the most basic framework describing the how and why of their M&A strategy. In a recent informal poll of insurance executives who focus on strategy, business development, and M&A, 1 Our informal poll, completed in the fourth quarter of 2021, solicited input from 12 North American insurance executives, representing traditional carriers as well as newer entrants. Seven of the 12 respondents reported closing at least one or two deals per year over the past five years, with none of them characterized as large deals. we found that some believe they have relevant capabilities in place given their frequent engagement in M&A (Exhibit 1). Yet few of these rise to the level of what we would define as a fully developed M&A blueprint . Without such a blueprint, companies will find it hard to distinguish between through-cycle opportunities  (during both upcycles and downturns) that are consistent with their corporate strategy and low-hanging opportunistic deals available in the marketplace that are not. Furthermore, without a developed M&A blueprint, insurers are more likely to pursue ad hoc synergies around each target with hit-or-miss returns.

A robust M&A blueprint addresses where, why, and how a company will undertake a systematic program of acquisition. It lays out well-defined themes and criteria that are explicitly grounded in strategy, builds conviction and alignment of stakeholders, and sets clear boundaries and integration plans. The result is that companies can be both more proactive and more opportunistic at identifying potential acquisition targets and will be better prepared for negotiations and integration. As important, an effective M&A blueprint will be an invaluable tool for executives communicating a compelling story, both internally and to investors, about the company’s deal-making strategy and its vision for the future.

Where and why

The foundation of any M&A blueprint is an explicit articulation of how M&A aligns with and furthers a company’s growth strategy. Companies that acquire businesses expecting to refine the strategic rationale later are unlikely to reap the rewards of programmatic deal making. So are those that see smaller acquisitions as malleable building blocks to be pieced together ad hoc, that take an opportunistic approach to M&A, or that proceed without a pressure-tested integration playbook.

For companies considering acquisitions, an M&A blueprint should target specific growth themes and boundary conditions that reflect a comprehensive self-assessment of a company’s competitive advantages as well as the compelling strategy requirements for its business model that make it well suited to pursue M&A in a specific area. For example, a personal lines P&C carrier’s corporate strategy included enhancing customer growth through a digital engagement platform. Confident in the company’s ability to rapidly scale new businesses, managers decided that a program of M&A to acquire the various components of an integrated, direct-to-consumer platform would be the best way to accelerate domestic growth and support international expansion.

Identifying growth themes

An effective blueprint for programmatic M&A identifies at most three actionable M&A growth themes. 2 Even experienced programmatic acquirers are often unable to focus on more than three M&A themes. Even so, companies with highly distinct business units, such as life and P&C insurance, could identify more than three themes. But in general, for carriers new to this approach, focusing on one or two M&A growth themes to start with could be more beneficial. These themes should be areas where the company can add value to targets and needs M&A to deliver its strategy. They might include, for example, themes leading to superior product manufacturing capabilities across life and annuities as well as personal and commercial P&C lines, the ability to operate effectively in multiple international markets—which can be difficult to achieve through organic growth—or opportunities to target smaller companies with differentiated offerings and niche areas, including asset management or specialty commercial P&C lines.

A vague M&A blueprint with an unclear link to strategy tends to lead to overly broad objectives for deal making. “Increasing our digital focus,” for example, is not specific enough to help executives identify potential M&A targets. A more actionable objective might be framed as “improving underwriting methodology by acquiring companies with expertise in areas such as data analytics, intelligent pricing, antifraud, and telematics.”

Converging around the top one to three areas where M&A can most substantially advance the organization’s strategy takes some planning. Getting a group of executives to agree on a shortlist of M&A themes is bound to evoke some friction. If you were to go around the table at the next strategy meeting and ask your company’s senior leadership team to identify the organization’s top M&A themes, you’d likely end up with a long list of ideas. That’s acceptable, at first, because such an exercise can serve as a mechanism that compels everyone to take a closer look at their data, assumptions, and biases—a process that elevates awareness and understanding. But eventually, the most effective M&A blueprints also reflect alignment and conviction among senior leadership (including business unit leadership and the business development team) around a shortlist of M&A themes.

Among the North American insurance industry M&A executives we polled, the two most common objectives of pursuing deals are the acquisition of new capabilities and the expansion of product and service offerings. Less relevant acquisition rationales included expanding geographically, realizing economies of scale, and acquiring undervalued companies.

The CFO of one leading insurance company successfully focuses the carrier’s M&A agenda around a prioritized set of growth and capability themes. Close collaboration between the CFO’s team and business unit leaders enables the company to identify top acquisition candidates—which is a big factor in their success at conducting due diligence on dozens of potential targets each year. This company successfully completes multiple bolt-on deals per year, many of which are privately negotiated transactions cultivated through proactive sourcing rather than well-known opportunities in the marketplace. In addition, the CFO’s team uses its playbook to create value and meet integration targets, which maintains capabilities, improves the cost structure, and typically includes a boundary condition of achieving earnings accretion within 12 months.

Setting boundary conditions

One aspect of this assessment that is often overlooked is an explicit acknowledgment of the market and organizational forces that define the boundaries of a company’s deal making in terms of size, type, and pace. The most concrete boundary is probably how much capital an insurer has on hand or can raise to fund a program of acquisitions—including capital not just for funding acquisitions but also for integrating and scaling each asset.

Boundary conditions might also include financial metrics such as those reflecting an insurer’s growth targets, margins, earnings, or ROE. If a carrier is only anchored on certain return metrics, such as ROE or ROIC, to track ongoing performance of an acquired asset, then high-growth, early-stage companies often look less attractive. Alternatively, if an insurer is willing to look at an array of metrics based on the asset profile—such as ROE or ROIC for mature assets versus top-line growth for early-stage innovators—then it will have a greater degree of freedom for deal making. Finally, even softer assessments of organizational and cultural fit, financial limitations, or regulatory boundaries can further narrow the scope of potential targets.

Establishing these boundary conditions early—with explicit agreement from the CFO and the board—can help put teeth into investment commitments and align everyone on negotiable and nonnegotiable terms. Consider, for example, the case of one personal lines carrier. Over the years, the company had a generally successful track record of acquiring large insurers to add new brands and customer segments. However, these acquisitions were seldom fully integrated, resulting in unwieldy productivity metrics and a collection of separately maintained corporate functions, such as finance and HR. This M&A strategy worked reasonably well until the company realized its loose approach was not scalable. The insurer addressed this issue by resetting both its organizational and M&A approaches and refining its methodology to implement a series of boundary conditions for acquisitions linked to tightened integration parameters. These included centralized corporate functions that created additional efficiencies, rather than maintaining separate corporate functions for each company it acquired. As a result, the company is now able to effectively pursue growth through M&A.

Programmatic acquirers must give careful thought to how they plan to pursue M&A—a critical part of the M&A blueprint to advance their strategic plans.

How: A foundation for action

Programmatic acquirers must give careful thought to how they plan to pursue M&A—a critical part of the M&A blueprint to advance their strategic plans. This process includes constructing a high-level business case to identify the objectives and preliminary integration plans for each area. It also includes identifying the right capabilities and resources for each part of the deal-making process, as well as plans for tailoring the approach for each specific deal. Plans may need adjustments to reflect each deal’s sources of risk and whether value opportunities will come from consolidation, capability building, or new business opportunities, for example.

Business case to identify objectives

Once priority M&A themes and boundary conditions are established, the next critical step is to develop a granular road map for execution. The road map should identify how an acquisition would create value and create screening criteria to prioritize potential targets—within the boundary conditions of feasibility and availability.

Once the business case is developed at the theme level, carriers need to develop a plan for each identified acquisition candidate, including a top-down growth plan, capital and cost synergy assumptions, risk mitigation, and a determination of the investment needed to scale the asset. An effective business plan should be continuously refined based on the target’s relative size, its level of similarity with the acquiring business, and, as acquirers learn more about an asset, its working culture.

It is important to recognize that in a seller’s market, buyers face the risk of overpaying for an attractive asset. A critical way to reduce this risk is to apply the discipline of developing an M&A blueprint inclusive of a theme-level business case. This process is designed to enhance the due-diligence process and allow organizations to avoid making costly mistakes that are inconsistent with their growth strategies.

Capabilities and execution

Part of the self-assessment involved in developing an M&A blueprint is a review of the company’s internal talent; its capabilities; and the time needed to evaluate, pursue, and execute M&A deals, both before and after a transaction. If there are unknowns, what are the gaps that need to be addressed?

We recommend that companies develop a comprehensive integration playbook as part of the overall blueprint, including key activities for each area (such as value capture, cultural integration, and revenue synergies) and specific leadership roles that must be filled for a successful transaction. This includes senior sponsors in the organization, ideally business unit leaders who own initiatives and assign working teams against them.

At least half of the carriers we polled have playbooks centered on the initial stages of a deal, including target identification, due diligence, valuation, and integration planning checklists. But most of them lack guidelines about tailoring execution—a critical factor in the most effective acquisitions  (Exhibit 2). In particular, based on different deal archetypes in insurance, acquirers might have different perspectives on who leads across five critical design areas of merger integration:

• Governance: Who leads the overall value creation planning and business case development and review, and how they do it?
• Leadership: Who coordinates the integration and organization effort across ideation, business case development, approval, and rigorous tracking?
• Scope: What do we integrate, and to what extent, to realize the value aspiration?
• Speed and pace: How fast should we go, and how coordinated should the effort be?
• Culture and talent: How will we handle people?

One leading global player with a history of delivering strong M&A returns employs a highly disciplined, sponsor-oriented approach to deal making. The CFO assigns leadership roles to specific executives, who have ultimate responsibility for deal execution and integration. This approach ensures speedy decision making, which unblocks pain points and helps deliver a deal’s full value.

Building conviction

Embarking on a program of M&A requires conviction, commitment, and buy-in from internal and external stakeholders alike. An effective M&A blueprint, when developed collaboratively, can ensure that competing viewpoints are heard inside the company and that risks and opportunities are thoroughly vetted. This better prepares the CEO to communicate with the board but also enables the acquisition team to seek the support of its acquisition targets.

Embarking on a program of M&A requires conviction, commitment, and buy-in from internal and external stakeholders alike.

Drafting the M&A blueprint

An M&A blueprint isn’t something a single executive can draft—and it isn’t much use if it’s developed after the fact to confirm the hypotheses supporting an exciting deal. The best blueprints reflect senior-level coordination between corporate-strategy and corporate-development executives whose collective alignment helps build conviction in their decision to commit capital to transactions. When alignment is established, the process becomes efficient because executives are not debating which types of deals to target. This alignment occurs in no small part due to a transparent and unambiguous approach from the CEO.

After one deal failed to cross the finish line, a mutual insurer’s CEO and head of M&A conducted a six-week exercise to assess and strengthen the company’s M&A approach. As a result, the company aligned its growth themes and developed a process to scan for broadened opportunities—enhancements that led to a threefold increase in the number of potential acquisition candidates. The new blueprint increased the company’s confidence in deal making and ultimately led to multiple equity investments in companies that generated substantial financial returns and turbocharged capabilities.

Your reputation as an acquirer

For programmatic acquirers, today’s competitive M&A landscape has characteristics of a seller’s market. Small and midsize companies with innovative technology, next-generation products, undeveloped intellectual assets, or even well-honed capabilities in underserved markets can have multiple suitors—and they’re often interested in more than just the bottom-line sale price. As a result, acquirers need to make longer-term investments to build conviction in acquisition targets. Yet nearly half the carriers we polled lack a clear owner for proactive target cultivation, and only one-third of carriers regularly establish relationships with potential M&A targets.

Some acquirers maintain lists of potential acquisition targets and cultivate relationships with them, and we expect more companies to begin following suit in the next year or two. This development will change the job responsibilities of carriers’ most senior executives, including the CEO. For example, one global insurance industry leader keeps an extended list of close to 100 potential acquisition candidates. Executives update this list quarterly and actively reach out to candidates to cultivate them for potential fit and deals. Senior leaders will need to allocate greater portions of their time to cultivating acquisition candidates. As a result, they need to have time blocks (appropriately leveraged in coordination and collaboration with others) focused on developing long-term relationships with targets that might ultimately lead to acquisitions.

The most successful acquirers also take the long view on establishing and supporting their brand identity as a desirable buyer. Companies known for treating people fairly after an acquisition—as well as caring about the knowledge they bring to the enterprise—often enjoy an advantaged position among competing acquirers. A robust M&A blueprint should explicitly address a company’s reputation as a buyer, how that reputation will play out in the acquisition process, and how the acquisition team might use the blueprint as a screening criterion in cultivating acquisition candidates.

Programmatic M&A is a strategy for systematically building new businesses, services, and capabilities and effectively integrating them to build something that did not exist before. The companies that use a programmatic approach create deal flow linked to their conviction in their corporate strategy, understanding of their competitive advantage, and confidence in their capacity to execute.

Alex D’Amico and Kurt Strovink are senior partners in McKinsey’s New York office, where Jay Gelb , Sean O’Connell , and Liz Wol are partners; Oliver Engert is a senior partner in the Miami office.

The authors wish to thank Shaun Ayrton, Cristian Boldan, Alok Bothra, Deniz Lenger, Aria Mason, Yves Vontobel, and Andy West for their contributions to this article.

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