Health Insurance Broker Business Plan and SWOT Analysis

Health Insurance Broker Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Health Insurance Broker 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 a Health Insurance Broker 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

Health insurance brokers and brokerages are quickly becoming a very important part of the insurance industry. This is primarily due to the fact that there are an ever number of changing regulations and laws that guide healthcare within the United States. At the time of this writing, there is a very hot political climate as it relates to the mandatory fees and payments that must be made in regards to maintaining a health insurance policy. As such, the level of confusion that exists within this market is substantial given the rapid change. Health insurance brokerages assist greatly in reducing these complications by being able to source comprehensive health care for individuals as well as businesses. These brokers are very well versed on every aspect of how health insurance works, the plans available, and how to remain in compliance with government regulations as relates to mandatory insurance coverage.

The startup cost associated with starting a new health insurance brokerage are very low. This is primarily due to the fact that this is a service-oriented business and what is really needed by the health insurance broker is the licensure to be able to produce and bind insurance contracts. This industry will be able to remain immune from negative changes in the economy given that people want health insurance and any economic climate. The gross margins generated from commissions are also substantial. A very highly skilled health insurance broker can easily generate commissions in excess of $150,000 per year. What is nice about this industry is that many practitioners are able to generate income not only from initial insurance sales but also from ongoing renewals which allow for a recurring revenue on an ongoing basis. This is one of the ways that these businesses can rapidly grow starting at the onset of their operations. The startup costs are associated with the development of a new health insurance brokerage typically range anywhere from $30,000 to $100,000 depending on the number of agents and brokers will be on staff at the onset of operations. The marketing and working capital needs of the business are typically the largest expense associated with operating this type of company.

Given the economically secure nature of these businesses, most financial institutions are willing to provide the necessary capital in order to get operations off the ground. In most cases, most people looking to become health insurance brokers solicit a working capital line of credit secured by assets they already own such as retirement accounts as well as equity in the home. In some cases, a specialized working capital one credit may need to be secured depending on the state and whether or not this is going to be considered a financial services business. A qualified certified public accountant can assist an individual with making these determinations. If capital is sought from a financial institution then a health insurance broker business plan is going to be required. As with all business planning documents a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page should be produced. Most importantly, a comprehensive demographic analysis in regards to the individuals and companies that will be targeted with the marketing campaigns should be included within the business plan as well. This includes taking a look at annual household income, median net worth, current insurances held, pre-existing medical conditions, as well as a host of other demographics that are typically used in conjunction with marketing a health insurance brokerage. Marketing is going to be one of the key components of the business plan specific for this type of business.

A health insurance broker SWOT analysis is typically developed as well. As it relates to strengths, health insurance brokers are able to always produce revenues in any economic climate given the laws and demand for quality health insurance. The gross margins are considered to be very high as it relates to disbursements of commissions. The startup costs are low in the barriers to entry are moderate once an individual receives their licensure.

For weaknesses, the ongoing and rapid change of laws and regulations pertaining to healthcare within theUnited States does make this a complicated business. An entrepreneur that is looking to enter this field needs to have an extensive understanding of the market, changes in laws, and how to properly implement policy changes quickly within their business model. This will typically contribute to a higher ongoing operating expense for the business.

For opportunities, health insurance brokerages can rapidly grow by hiring additional sales agents that will solicit business on behalf of the company. Additionally, offices can be established in many other locations in order to serve a greater target market radius. There is also the opportunity to develop an expensive online marketing presence so that people can quickly find the company and receive quotes for health insurance.

As it relates to threats, much like weaknesses – the primary threats facing this business revolve around the political climate and continue changes to healthcare law within the United States. As such, and again – it is imperative that the entrepreneur stay on top of these issues on a day-to-day basis.

The health insurance broker marketing plan also needs to be developed and properly showcased to a potential funding source so that they understand how leads will be serviced. For most, many health insurance brokers work directly with small and medium-size businesses are looking to provide healthcare to their employees. One of the quickest ways to develop these relationships is to enroll in area chambers of commerce as well as maintaining expansive online presence. The company’s website listed among all major search engines and a modest social media presence should also be developed. Although it is somewhat time-consuming, a presence on social media platforms that focus on small businesses can rapidly expand the initial commissions of the business as small companies frequently look for ways to find quality health care for their employees and owners. The entrepreneur can also hire a social media consultant that can manage this aspect of the complicated marketing operations of the health insurance broker.

One of the other benefits to operating as a health insurance brokers that some companies will operate in an affiliated capacity where individuals will directly seek out a specific insurance carrier and will be referred to the broker on an ongoing basis. This can contribute to a much more appropriate stream of revenue for the company and the fact that a very strong brand name is going to be associated with the insurance brokerage agency. Of course, this does limit the number of different policies that can be provided to a specific individual or small business given that they will only be able to issue policies in the name of that carrier. It is up to the entrepreneur to determine whether or not it is economically feasible to work with one specific insurance carrier. A full competition analysis should be discussed within the business plan and marketing plan to determine how many independent brokerages are operating within any given market as well as how many affiliated agencies are in any given market in order to determine the best course a strategy for marketing. If it is a heavily saturated market than it may be in the best interest of the entrepreneur to work with a specific insurance carrier in order to be able to showcase their brand name to the general public.

Health insurance brokers are always going to be in very strong demand and they are a very good boon for people and small businesses that want to be able to provide quality healthcare to their employees and families. The gross margins generated from these services allows these companies to operate even during times of economic recession. One of the key ways that a insurance program that specifically focuses on healthcare can grow is by simply increasing the number of carriers that they work with on an ongoing basis concurrently being able to offer additional policies such as automotive insurance, property and casualty insurance, and related insurance policies and assist people with their day-to-day lives. While this industry will continue to undergo a number of changes over the next 20 years, there’s always going to be a need for quality insurance among individuals and small businesses. This business is not subject automation given the fact that individuals are going to want to work directly with an in insurance agent when they have a specific issue.