* The calculations use average data for Russia

Starting investments:

100,000 - 400,000 ₽

Insurance agent bonus:

Net profit:

50,000 - 150,000 ₽

Payback period:

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

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

Basic concepts of insurance business

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

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

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

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

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

Analysis of the Russian insurance market

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

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

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

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

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

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

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

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

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

Types of insurance organizations: what business is realistic to open

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Insurance agency income and expenses

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

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

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

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

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

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

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

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

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

OSAGO and CASCO;

life and health insurance;

property insurance for individuals and legal entities;

business insurance.

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

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

Marketing and promotion of an insurance agency

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

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

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

Contextual advertising. Contextual advertising will also work well if it is correctly targeted to the right type of clients and region. A successful sign and an office in a high-traffic area will help attract customers to simple products, for example, OSAGO.

Franchise insurance agency

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

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

Additionally, the franchise owner can provide the following services:

training employees in insurance products and sales technologies;

concluding agreements with insurance companies;

documents for organizing the work process;

staff motivation system.

Due to the relatively low cost of a franchise, it is worth considering the possibility of purchasing it, especially since a large number of similar franchise options are offered and there is a choice.

Having analyzed the opportunities that the insurance market offers for starting your own business, we consider it advisable to choose the form of organization in the form of an insurance agency, as the most profitable and, at the same time, requiring minimal investment. The development of this market in recent years has led to the presence of many free niches in this area of ​​business. A key success factor for this business will be the attraction of highly professional insurance agents.

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If you are on this site, then most likely you have questions about the insurance business, for example: “How to open a branch of an insurance company for auto insurance (MTPL, CASCO) and other types? How to open an insurance agency from scratch? How to open an insurance broker and work with different insurance companies? If so, congratulations! Next we will figure out how to do this.

Insurance company or insurance agency?

First you need to decide on the terminology. It is important to understand that an “insurance company” is understood as a market entity conducting its activities in concluding insurance contracts, as well as on organizing the process of payments under policies. In addition, the insurers themselves, for example, Ingosstrakh, Rosgosstrakh, RESO and others, in accordance with the law, are required to have a minimum authorized capital for carrying out activities in the amount of 120 million rubles.

Therefore, if you want to do business in auto insurance (MTPL, CASCO) and other products, then most likely you are interested not in how to open the entire insurance company itself, but in how to open a representative office, branch, office of an insurance company on the basis of an agency agreement about cooperation, that is, to organize an insurance agency or an insurance broker business.

Open an insurance agency or insurance broker yourself

1 way
How to open a business on your own? The owner of an insurance business (agency or broker) is an entrepreneur who, himself or with the involvement of staff, consults individuals and organizations, helps them choose the best insurance option and receives a commission from companies for this. In other words, this activity is essentially a form of small business that, in our experience, does not require an initial investment. So, how to open an insurance agency or broker yourself?

The simplest algorithm to open an insurance company (agency or broker):

1. Decide how many companies you will represent,
2. Choose the right companies to cooperate with,
3. Take a set of constituent documents,
4. Come to the company
5. Carefully and correctly fill out the candidate application form,
6. Pass an interview, proving your usefulness to the company,
7. Fill out the application for admission,
8. Pass checks by the security and internal control service,
9. Select promising products
10. Sign an agency agreement,
11. Get the necessary policies,
12. Establish a stable flow of clients, engage in their attraction,
13. Consult interested people, draw up contracts,
14. Organize financial flows, hand over money on time,
15. Receive your reward for each policy.

In practice, of course, there are many additional questions and pitfalls. In other words, unfortunately, it is not enough to just say to yourself “I want to open an insurance agency for auto insurance and other types” and sign a couple of contracts with insurers. This will not add more money to your pocket. It is important to understand that your own representative office of insurance companies (your own insurance agency) is a serious business that requires both, and the introduction of technology, etc. After all, a business can bring in a lot of money if correct approach to organizing business processes and internal organizational and financial structures.

Open an insurance company through franchising

Method 2.
We are often asked: “How to open an insurance broker for MTPL, CASCO and other types as quickly and easily as possible? How to open an insurance company with minimal investment? There is a solution!

Insurance business franchising is a type of cooperation in which the owner of a highly profitable business (franchisor) transfers information to his new partner (franchisee) about how this business works, helps organize all business processes, provides clients, and also allows him to use his brand. In other words, you get a ready-made working business and start earning money instead of wasting time, nerves and effort on “reinventing the wheel” by organizing a business yourself. If you don’t want to figure out how to organize a broker’s business yourself, but want to start earning money as soon as possible, then .

Yes, buying a business model and training costs money, but, as practice shows, in the saved time (6 months - 1 year), franchisees manage to earn more than they invested in its purchase. After all, it is known that time is money. At least this is true if the insurance business whose franchise you are buying is proven and highly profitable.

It is worth noting that, as a rule, only truly highly profitable and proven agencies and brokers provide franchisees with clients. Therefore, when choosing a franchisor, it is important to pay attention to this nuance.

If you want to open an agency or broker, fill out the form below!
Find out the conditions and cost of a ready-made insurance business with 10 years of experience:

Working on an insurance company business plan

3 way
It is no secret that many (especially beginning) entrepreneurs believe that opening an insurance company can be done according to some kind of business plan. There are a huge number of different business plans for insurance companies (insurance agencies, insurance brokers) on the Internet. Anyone who has sufficient experience in business understands how far any even almost ideal business plans are from the harsh reality of competition in the real market. There is even a saying: “Not a single business plan can withstand a collision with reality,” so offering another “fantasy” on the topic “How good it could be if it were true” in the form of a business plan for an insurance company - we are on our We will not be on the site, however, we will dwell on the main key points of the business model of any successful insurance broker or agency, so that you, dear visitor of the site, have a correct understanding.

Some advantages of the insurance business:

1. Additional income to the salary at the main place of work,
2. Start your own insurance business - from scratch and with minimal investment,
3. Flexible work schedule instead of a rigid schedule,
4. The ability to independently choose the dates and duration of vacations,
5. Become a leader, delegate, hire staff,
6. And so on…

Thus, the insurance industry opens many doors and gives many choices. For some, this is an opportunity to earn additional income. For others, this is a chance to start their business from scratch. How about you? It's up to you to decide.

Why is your own agency or broker a business with minimal investment?

1. No need to buy goods/equipment for trading,
2. No need to rent an office/pay rent,
3. There is no need to hire highly paid employees/specialists,
4. No need to purchase raw materials/technology,
5. No need to buy production equipment.

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Do you like this business idea? Do you want to try opening an insurance company office or are you still in doubt? It is known that the best way to understand is check! And the safest thing is to check for free! You will become familiar with the specifics of this business. And you’ll even understand how to open an insurance company office!

Take our course - from professionals with 10 years experience in insurance. You will receive valuable advice and experience from professional insurance business owners with 10 years of management experience. And you will be able to complete practical tasks for maximum results.
Participation is free, no payment required!

The material was prepared based on articles and
publications of the head coach of the training center
insurance agents "Insurance Spetsnaz"
Yuzefovich Konstantin

* The calculations use average data for Russia

Starting investments:

100,000 - 400,000 ₽

Insurance agent bonus:

Net profit:

50,000 - 150,000 ₽

Payback period:

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

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

Basic concepts of insurance business

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

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

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

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

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

Analysis of the Russian insurance market

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

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

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

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

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

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

Ready ideas for your business

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

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

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

Types of insurance organizations: what business is realistic to open

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

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

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

Ready ideas for your business

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Insurance agency income and expenses

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

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

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

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

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

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

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

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

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

OSAGO and CASCO;

life and health insurance;

property insurance for individuals and legal entities;

business insurance.

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

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

Marketing and promotion of an insurance agency

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

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

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

Contextual advertising. Contextual advertising will also work well if it is correctly targeted to the right type of clients and region. A successful sign and an office in a high-traffic area will help attract customers to simple products, for example, OSAGO.

Franchise insurance agency

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

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

Additionally, the franchise owner can provide the following services:

training employees in insurance products and sales technologies;

concluding agreements with insurance companies;

documents for organizing the work process;

staff motivation system.

Due to the relatively low cost of a franchise, it is worth considering the possibility of purchasing it, especially since a large number of similar franchise options are offered and there is a choice.

Having analyzed the opportunities that the insurance market offers for starting your own business, we consider it advisable to choose the form of organization in the form of an insurance agency, as the most profitable and, at the same time, requiring minimal investment. The development of this market in recent years has led to the presence of many free niches in this area of ​​business. A key success factor for this business will be the attraction of highly professional insurance agents.

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Developed countries have long been actively using all types of insurance to ensure security and reduce the risk of loss of movable and immovable property. Opening a branch of an insurance company in our country is less profitable than in the West. The business has great prospects in the near future, so you need to find new clients now. In regional cities, competition is quite high, but despite this, the insurance business has great prospects.

Every investor strives to reduce the risk of losing their investments, so they fully insure their real estate, which includes new housing projects, shopping centers, and apartment buildings. The list of services provided by the insurance company is quite large; let’s look at the most popular policies.

Types of insurance company services

• Life insurance. In exchange for paying for insurance, the company provides a guarantee of payment of a specific amount to a trusted person in the event of the client's death.
• Home insurance. Having an insurance policy in hand, the client has a guarantee of compensation for losses in the event of unforeseen circumstances, such as fire, flood, burglary for the purpose of robbery.
• Auto insurance. The policy has several types of insurance. One of the best All Inclusives, the driver receives a full guarantee of compensation against any risks.

Management

It is possible to open a branch of an insurance company by purchasing a franchise from a specific company. The managers of such companies are interested in developing their subsidiaries, so any assistance is provided at different stages of work. In addition to all the necessary documentation, branches receive the insurance company’s brand, which they can use to attract new clients.

Competently drawing up a business plan will help to establish effective financing, especially if there are borrowed funds in the system. The business organization must be structured in such a way that the profitability of the company allows it to develop successfully.

Before opening a branch of an insurance company, you need to register it as a legal entity. It can be an LLC, CJSC or OJSC. In addition, insurance is a type of activity that is subject to mandatory licensing. To obtain a license, you need to write an application, collect all the necessary documents, and pay the state fee.

The branch office must be chosen in the central areas of the city. It should be located in a public area and decorated in a business style. The staff of managers must be provided with all the conditions for productive work. In addition, you need to take care of the social package.

The success of an insurance company branch depends on the professionalism of its employees. The training system will eventually make it possible to obtain qualified personnel capable of solving complex problems. Develop a reward strategy that will motivate employees and motivate their work.

By expanding the range of services with more advantageous offers, you can easily increase your customer base. Insurance programs should be as flexible as possible so that clients can choose the best option for themselves. In addition to compulsory insurance, develop voluntary insurance policy programs.

Question: How many founders would it be more comfortable to have in an LLC in order to effectively develop an insurance company?
Answer: The number of participants in an LLC is not of fundamental importance. All important issues related to the development of the company are resolved in the board of founders, and strategic decisions are made on their basis.

Question: How should you train your employees?
Answer: Please contact the company from which the franchise was purchased for this question. Surely they already have an effective personnel training system; their experience in this matter will be very useful for the branch.

Question: How to advertise for an insurance company?
Answer: Direct advertising in insurance does not work well. But you still need to carry out an advertising campaign. Nowadays, outdoor advertising mainly works, which is located next to real estate agencies and car dealerships.

There is serious competition in the insurance market these days. But despite this, new organizations are constantly appearing that offer various services in this area. Many entrepreneurs who have decided to choose such an activity for themselves are interested in how to open an insurance company in Russia? They can get answers to many questions in this article.

Registration

Before opening an insurance company, first of all, you need to register as a legal entity. This may be an LLC, a closed joint stock company, or a mutual insurance company.

The authorized capital of a small insurance company must be at least 20 million rubles. If you want to offer life insurance to customers, the amount should be much higher.

To carry out activities in the field of insurance, you must obtain a special license. It usually takes about 6 months to complete this document.

To obtain a license you must provide the following documents:

• Business plan;
• Calculation of tariffs and insurance rules;
• Documents confirming the education and qualifications of the general director;
• Constituent documents.

By franchise

Most clients enter into contracts only with large, reputable organizations that have extensive experience in this field and an impeccable reputation. Small start-up insurance companies do not inspire much confidence, so many are interested in how to open a franchise insurance company. An organization that operates from a well-known company moves faster in the market and finds new clients.

Some companies that have managed to gain sufficient fame offer to buy franchising from them. In the insurance business, the franchise will be inexpensive. It can be purchased for 150 thousand rubles.

Money and services

When drawing up a business plan for an insurance company, you should take into account the costs of renting or purchasing premises, furniture, office equipment, various office supplies, etc. In addition, you should calculate how much money you will need to pay employees, transportation, marketing, advertising and utilities.

Start-up costs should be distributed as follows:

1. Authorized capital. For this you will need approximately 20 million rubles.
2. Renting the premises will cost 2-3 million rubles.
3. Paperwork and company registration – 500 thousand rubles.
4. Office renovation – 200 thousand rubles.
5. Office equipment – ​​650 thousand rubles.
6. Marketing and advertising events – 100 thousand rubles.
7. Staff salary – 3 million rubles.
8. Unforeseen expenses - 350 thousand rubles.

If you calculate all these expenses, it turns out that to open an insurance company you will need a starting capital of 675 thousand dollars. Now you know how much it costs to open an insurance company. This is a fairly large amount, but if things go well, the profit will be appropriate.

Staff

Since official insurance companies select only highly qualified specialists for work and pay them good salaries, professionals do not sit without work. In addition, the influx of new personnel in this area is small, since only a few universities teach the specialty “insurance”. Therefore, to select personnel for an insurance company, you should contact a recruitment agency. It is advisable to recruit at least 150 experienced insurance agents per year.

An insurance business will be profitable only if it employs experienced, qualified employees. For a company to prosper and be profitable, employees should be motivated with high salaries, bonuses and a social package.

You can offer training to employees. Since this is quite an expensive pleasure, you can indicate in the employment contract that after training he must work for you for a certain time.

Insurance company branch

Organizations that have been engaged in this activity for more than 5 years can work in our country. If they offer life insurance, you must have at least 8 years of experience. In addition, they must have branches that have been operating for at least 5 years. Moreover, the financial asset of such an insurance company should be $5 billion.

Office

Insurers typically rent office space. In principle, you can open an insurance company office in any area. The most important thing is that customers can easily reach you.

You should not rent too expensive office space in the city center. For a start-up company this is an unaffordable luxury. Choose a decent, inexpensive room that will meet all the established requirements. This is the simplest and most affordable option.

Main problems

• The following serious problems may arise in the insurance business:
• The small size of the authorized capital does not allow us to engage in insurance of large objects.
• Low solvency of the population. People who have little income refuse to pay insurance premiums, so the demand for services decreases.
• Lack of government support. In most areas of life, compulsory insurance is not established.

Various pitfalls are found in different areas of business activity. To achieve success, you need to go through a long road of competition. The main thing is to be able to explain to clients that insurance is a necessary and useful service.

Secrets of the insurance business

In order for a company to prosper and make a profit, prices should be reduced at the very beginning of its activities in order to attract the attention of customers with favorable insurance conditions. Offer them programs of both compulsory and voluntary insurance. If you don’t know what it takes to open an insurance company, contact leading experts in this field who can advise you on various issues.

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Profit and profitability

An insurance company will grow faster if you offer clients an expanded list of services. Some experts believe that the insurance business has no future in Russia. But that's not true. If you constantly monitor the market, analyze the opinions of experts and develop effective marketing activities, you will definitely achieve success.

An insurance company as a business will become a promising area of ​​activity if you have impressive start-up capital and are determined to succeed. It is impossible to calculate profits from the first days of work, therefore, to be on the safe side, you can insure your starting capital in another company. In this case, even if you have to pay several fairly large amounts, there will be no serious threats to your business.

Are you interested in the idea, but don't have enough money to open such a serious business? Then we recommend that you take a closer look at less expensive ideas, for example