Auto Insurance Company Business Plan and SWOT Analysis

Auto Insurance Company Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Auto Insurance Company Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Auto Insurance Company business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Automotive insurance is something that is typically demanded all times given that the vast majority of states always require that an individual has proper insurance if they own and operate a vehicle. These businesses are able to generate streams of revenue not only from an individual initially signs up for automotive insurance, but also from the recurring streams of revenue that are generated for renewals. Almost all insurance agencies, including those that specifically sell automotive insurance, are able to generate residual income by managing a large number of clients that they have developed through their book of business. It should be noted that many auto insurance companies operate on an affiliated basis with the ability to  exclusively sell the insurance lines that are offered by one carrier. However, there are a number of companies operate in an independent capacity where they are able to provide quotes among a number of different carriers. One of the benefits of acting as an exclusive agent for a specific carriers that the business will receive a substantial amount of ongoing marketing support as well as a protected territory in most instances.

Additionally, affiliated agents as well as affiliated automotive insurance companies are able to use the brand-name and marketing materials produced by the very large insurance carrier. Alternatively, independent brokerages are able to operate in the best interest of their clients by providing quotes for numerous insurance carriers at one time. Depending on how the entrepreneur intends to structure their business, operating in either capacity can be highly lucrative. The startup costs for establishing a new automotive insurance agency or auto insurance company is relatively low. Startup cost typically range anywhere from $50,000 to $100,000 depending on how much working capital is needed at the onset of operations. As this is a service based business, the gross margins from revenues typically around 90% depending on what is considered part of the cost of goods sold. The revenues generated by these businesses does not wane during times of economic recession.

Given the economically secure nature of these businesses, most financial institutions are willing to provide a working capital line of credit or small business loan in order to launch operations. It should be noted that one of the reasons why banks are willing to provide this type of capital is that there is a significant amount of licensure required in order to operate as an insurance producer. As such, this does create enough of a barrier to entry in order to ensure that these businesses can remain economically viable even in a somewhat saturated market.

An auto insurance company business plan should be developed in this document should feature a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. A demographic analysis is almost always going to be required not only by the financial institution but also by any insurance carrier that intends to do business with the company. As with most demographic analyses, an examination of the population size, population density, annual household income, average amount of money spent on a new vehicle, average amount of money spent on a used vehicle, and other relevant statistics should be included in the documentation. In almost anybody any given market there is typically a number of competitors that operate in a similar capacity to the automotive insurance company. As such, taking a look at the competition – both the number of independent brokerages as well as affiliated agents – should be included in the analysis as well.

An auto insurance company SWOT analysis should always be produced. This document will outline the strengths, weaknesses, opportunities, and threats associated with these businesses. As it relates the strengths, auto insurance companies can generate substantial revenues among new people that become customers of the business while concurrently generating residual income from renewals. The barriers to entry are moderately high, and the ongoing licensure requirements allows these businesses to remain competitive once established. These businesses are profitable in all economic climates.

For weaknesses, the biggest challenge for these companies is that there is always a substantial amount of competition in any given market. As such, the owners of independent auto insurance companies must continually find ways in order to boost their visibility. This typically translates into a very high operating expense from marketing perspective.

For opportunities, most auto insurance companies expand by simply hiring additional sales agents while concurrently acquiring other books of business from third parties that are either moving or retiring. One of the other ways that these businesses can grow instantly by aggressively expanding their ongoing marketing and advertising campaign within a specific regional market.

For threats, online technology has made it much easier for individuals to receive quotes from a number of different companies right away. As such, anyone who is thinking of developing a auto insurance company should be able to integrate any new aspect of technology into their operations in order to remain competitive.

An auto insurance company marketing plan also needs to be developed and this is probably the most important aspect to the overall business planning process. Given the highly competitive nature of these businesses, and auto insurance companies have taken to using aggressive prints, media, and Internet-based advertising in order to drive sales. The company’s online platform should showcase all insurance is offered, hours of operation, other services rendered, and the biographies of staff sales agents. This website should go undergo search engine optimization, pay per click marketing, as well as the use of linked social media accounts in order to boost visibility. Many insurance agents and auto insurance companies will also maintain extensive profiles on social media platforms like FaceBook, Twitter, LinkedIn, and YouTube in order to effectively boost their visibility as well. This is going to be one of the continued and ongoing ways in which these businesses expand their operations.

Although most people don’t to think about it too much, everyone does need auto insurance. As such, by providing the service to the general public these businesses are always able to produce highly predictable and highly recurring streams of revenue from commission driven income. There’s really not much it’s going to change about this industry with the exception of the continued integration of new technology. As such, this will remain as one of the economically viable businesses that a small business owner that has experience in the insurance industry can count on for years to come.