AVGH Insurance Brokerage is seeking a $50,000 loan to launch an independent insurance brokerage firm in Toronto. The firm will offer life and disability insurance products underwritten by Manulife Financial. The funds will be used for startup costs such as office space deposits, working capital, equipment, and marketing. The management team has extensive experience in insurance and financial planning. The business plan forecasts strong growth over three years with increasing numbers of life and disability insurance policies sold each year. The owners' goal is to provide excellent customer service and financial protection through careful risk assessment and solutions.
Pro Tech Mobile Device Insurance Business PlanJames Turner
This project was done in effort to complete my Certificate of Entrepreneurship and Innovation at Purdue University The assignment asked students to take a current problem of today's world, and provide solution that could scale. The solution created is called Pro - Tech. Pro-tech is a company that insures smart devices so our clients can use them, when they need them the most. Where most smart devices can be expensive and extremely difficult to fix when looking to major cell phone providers for help, Pro-tech will make insurance and trouble shooting for these devices easy and accessible to all.
LIC insurance company profile,
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profile,
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Pro Tech Mobile Device Insurance Business PlanJames Turner
This project was done in effort to complete my Certificate of Entrepreneurship and Innovation at Purdue University The assignment asked students to take a current problem of today's world, and provide solution that could scale. The solution created is called Pro - Tech. Pro-tech is a company that insures smart devices so our clients can use them, when they need them the most. Where most smart devices can be expensive and extremely difficult to fix when looking to major cell phone providers for help, Pro-tech will make insurance and trouble shooting for these devices easy and accessible to all.
LIC insurance company profile,
LIC insurance company information,
LIC corporate profile,
LIC profile,
LIC corporate,
insurance company profile,
insurance company information,
corporate profile,
profile,
corporate,
LIC OF INDIA insurance company profile,
LIC OF INDIA insurance company information,
LIC OF INDIA corporate profile,
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EXCELLENT OPPURTUNITY FOR BRIGHT CAREER
• IF YOU ARE LOOKING FOR ORGANISATION WHERE YOU
• DECIDE YOUR OWN TIMINGS TO WORK,
• CAN EARN AS MUCH YOU WANT AND
• PROVIDES EVER INCREASING INCOME,
• FACILITY OF CAR
• TELEPHONE
• COMPUTER ETC.
AND ALSO SECURED FUTURE
JOIN AS AGENT OF LIFE INSURANCE CORPORATION OF INDIA
OPPURTUNITY FOR MALE/FEMALES/HOUSEWIVES/C.A.’S/ OR ANY
PERSON ZEAL TO GET ALONG WITH PEOPLE
ALSO CONTACT FOR INSURANCE PLAN FOR YOUR NEEDS
SANJEEV HANDA
Sr. Business Associate
9810163246
handa1502@gmail.com
Academic project with an objective to break conventional and conditioned pattern of thinking and to induce associative thinking by appying learnings from different industries and domiains
People work to earn income, that's so obvious, right? So what is wrong in earning some more in this rapidly increasing economy. We're there to guide you to succeed in your business. All you need to do is grab this opportunity and become LIC Advisor. Training and other relevant support needed for the work will be provided from our side. Visit www.getmelic.com for more details
An efficient financial reporting disclosure is a yardstick in measuring the strength of any company. The financial reporting disclosure of non-life insurance companies of Bangladesh is the topic of this thesis paper. For the ease of study the disclosures are divided into two categories –mandatory and non-mandatory financial reporting disclosures. The study has been conducted on the listed non-life insurance companies of Bangladesh.
The selection of listed non-life insurance companies has been done in a systematic and representative way. Among 32 companies, 13 companies have been selected to conduct the study. Annual Report 2012 and 2011 has been taken into considerations since the Annual Reports are the yardstick and mirror of the financial reporting disclosures.
The study has been structured with the use of checklists of mandatory disclosures, non-mandatory disclosures and financial reporting standards. These checklists have been analyzed very well to get the actual scenario of the financial reporting disclosure conditions of the non-life insurance companies. This revealed that most companies have poor financial reporting disclosure conditions. With proper compliance with the financial reporting standards this poor condition can be made efficient.
This document brings together a set of latest data points and publicly available information relevant for Insurance Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
This document brings together a set
of latest data points and publicly
available information relevant for
Insurance Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
EXCELLENT OPPURTUNITY FOR BRIGHT CAREER
• IF YOU ARE LOOKING FOR ORGANISATION WHERE YOU
• DECIDE YOUR OWN TIMINGS TO WORK,
• CAN EARN AS MUCH YOU WANT AND
• PROVIDES EVER INCREASING INCOME,
• FACILITY OF CAR
• TELEPHONE
• COMPUTER ETC.
AND ALSO SECURED FUTURE
JOIN AS AGENT OF LIFE INSURANCE CORPORATION OF INDIA
OPPURTUNITY FOR MALE/FEMALES/HOUSEWIVES/C.A.’S/ OR ANY
PERSON ZEAL TO GET ALONG WITH PEOPLE
ALSO CONTACT FOR INSURANCE PLAN FOR YOUR NEEDS
SANJEEV HANDA
Sr. Business Associate
9810163246
handa1502@gmail.com
Academic project with an objective to break conventional and conditioned pattern of thinking and to induce associative thinking by appying learnings from different industries and domiains
People work to earn income, that's so obvious, right? So what is wrong in earning some more in this rapidly increasing economy. We're there to guide you to succeed in your business. All you need to do is grab this opportunity and become LIC Advisor. Training and other relevant support needed for the work will be provided from our side. Visit www.getmelic.com for more details
An efficient financial reporting disclosure is a yardstick in measuring the strength of any company. The financial reporting disclosure of non-life insurance companies of Bangladesh is the topic of this thesis paper. For the ease of study the disclosures are divided into two categories –mandatory and non-mandatory financial reporting disclosures. The study has been conducted on the listed non-life insurance companies of Bangladesh.
The selection of listed non-life insurance companies has been done in a systematic and representative way. Among 32 companies, 13 companies have been selected to conduct the study. Annual Report 2012 and 2011 has been taken into considerations since the Annual Reports are the yardstick and mirror of the financial reporting disclosures.
The study has been structured with the use of checklists of mandatory disclosures, non-mandatory disclosures and financial reporting standards. These checklists have been analyzed very well to get the actual scenario of the financial reporting disclosure conditions of the non-life insurance companies. This revealed that most companies have poor financial reporting disclosure conditions. With proper compliance with the financial reporting standards this poor condition can be made efficient.
This document brings together a set of latest data points and publicly available information relevant for Insurance Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
This document brings together a set
of latest data points and publicly
available information relevant for
Insurance Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
October 2016 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Insurance
Brand Analysis: Bata
Case Study Analysis: Ola
Concept of the month: Bug Bounty
Guest Lecture by Devang Mehta
This document brings together a set of latest data points and publicly available information relevant for Insurance. We are very excited to share this content and believe that readers will benefit immensely from this periodic publication immensely.
ITShades.com has been founded with
singular aim of engaging and
enabling the best and brightest of
businesses, professionals and
students with opportunities,
learnings, best practices,
collaboration and innovation from IT
industry.
This document brings together a set
of latest data points and publicly
available information relevant for
Insurance Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
This publication includes the deal activity in the insurance sector such as overall highlights, key announced transactions, and the outlook ahead. Read our full report to learn more.
This document brings together a set
of latest data points and publicly
available information relevant for
Insurance Industry. We are very
excited to share this content and believe that readers will benefit from this periodic publication immensely.
1. BUSINESS PLAN
AVGH Insurance Brokerage
401 THE WEST MALL, ETOBICOKE, ON, M9C 5J5
Tel: (416) 695-7025; Fax: (416)-695-7026
2. 1
AVGH INSURANCE BROKERAGE
April 05, 2016
Eric Clapton
1717 E SpeedwayBlvd,Suite 1201.
Tucson,AZ 85719
UnitedStates
Dear Mr. Clapton:
Our business plan for an insurance brokerage is enclosed. We are expecting for a 3 year Term Loan to
finance the start-upcostsof this excitingbusinessconcept.
AVGHinsurance brokeragehasbeendesignedtomeetthefinancial needsof thepeople inourcommunity.
Our goal is to help families in ways that they can financially provide for their dependents if something
unexpected happenstothem. We will be offeringawide varietyof life anddisabilityinsurance products
offeredbyManulife Financial,one of the largestcarriers inCanada.
Our conservative estimate showsthatthe businesswill provide asignificantreturnoninvestmentbythe
middle of the second year of the operation. The financial analysis, market analysis and marketing plan
detailedinthe encloseddocumentdefine aparticularattractive investmentopportunity.
We are preparedto make a formal presentationof ourplanat yourcurrent place of stay in Scarborough
on nextTuesday,April 07,2016 at 10.00 a.m.as agreed.
I am convinced that you will find this forward looking project one that will interest you as a sound
investment.
Sincerelyyours,
For AVGHInsurance Brokerage
Abdul wahab
Managing Partner
Enclosure:BusinessPlan
401 THE WEST MALL, ETOBICOKE, ON, M9C 5J5
Tel: (416) 695-7025; Fax: (416)-695-7026
3. 2
1 TABLEOF CONTENTS
Executive Summary ............................................................................................................................3
Body of the Plan.................................................................................................................................4
Company and Financing Summary ...................................................................................................4
Industry Overview ..........................................................................................................................4
Products and Services ....................................................................................................................5
Strategic and Market Analysis .........................................................................................................6
Development Plan ..........................................................................................................................7
MarketingPlan...............................................................................................................................9
Financial Plan .............................................................................................................................. 10
Appendices .....................................................................................................................................14
4. 3
EXECUTIVE SUMMARY
The purpose of this business plan is to raise $50,000 for the development of an independent insurance
brokerage firm while showcasing the expected financials and operations over the next three years. AVGH
Insurance Brokerage is a Toronto based partnership firm, equally owned by its partners.
1.1 Products and Services
Initially, the firm will offer a wide variety of life and disability insurance products offered by Manulife
Financial, one of the largest nationally recognized carriers. In due course, the firm will sell insurance-specific
investment products and develop financial planning services that will complement the business’ insurance
products. These financial services would yield very high margins of recurring revenue for the business. In the
later part, the business plan will further describe the services to be offered by the firm in more details.
1.2 The Financing
The sponsor partners are seeking to raise $50,000 from Mr. Eric Clapton as a loan. The interest rate and loan
agreement are to be further discussed during negotiation. This business plan assumes that the business will
receive a 3 year loan with a 12% fixed interest rate.
1.3 Mission Statement
It is the goal of the firm to provide our insureds with superb coverage and claims handling through careful
and diligent underwriting of risks and business-friendly solutions
1.4 Management Team
The firm was founded by Abdulwahab Hameed Ahamad, Vincent Cheung, Guitar K. Kanungo and Han Ho. All
these partners are licensed with Financial Services Commission of Ontario to sell life and health insurance
products and insurance-specific investment products including segregatedfunds and annuities. Vincent
Cheung, Han Hu and Abdulwahab Hameed Ahamad are Certified Financial Planners while GuitarK. Kanungo,
a Certified Insurance Professional, is licensed with Ontario Securities Commission to advise on and sell mutual
fund investment products. He has more than 10 years of experience in the insurance and financial planning
industry. Through his expertise, he will be able to bring the operations of the business to profitability within
its first year of operations.
1.5 Sales Forecasts
The firm expects a strong rate of growth at the start of operations. Below are the expected financials over the
next three years.
Items 2016-2017 2017-2018 2018-2019
# $ # $ # $
Life Insurance 1294 254,265 1572 309,063 1910 375,669
DisabilityInsurance 1293 9,027 1571 10,973 1910 13,337
Total 2587 263,292 3143 320,036 3820 389,006
*The numberof policiesare non-cumulative.
1.6 Expansion Plan
The Founders expect that the business will aggressively expand during the first three years of operation. The
firm intends to implement marketing campaigns that will effectively target young couples with children and
self-employed individuals within the target market.
5. 4
2.0 COMPANY AND FINANCING SUMMARY
2.1 Registered Name and CorporateStructure
AVGH Insurance Brokerage. It is registered as a general partnership in the Province of Ontario.
2.2 Required Funds
At this time, the Insurance Agency requires $50,000 of debt funds. Below is a breakdown of how these funds
will be used:
Items Amount Total
Lease Payments and Deposits $7000
Working Capital $48329
Opening Supplies $3000
Furniture and Fixtures $2400
Laptops $6000
Software $4800
Printer $1000
Phone System $1560
Cell Phones $3600
Error and Omission Insurance $4800
Tenant Insurance $1500
Legal and Accounting Fees $1500
Start-up Marketing $2500 $87989
2.3 InvestorEquity
The partners are not seeking an investment from a third party at this time. They will finance the remaining
start-up costs of $20,000 from their own sources.
2.4 Management Equity
Each of the partners owns 25% shares AVGH Insurance Brokerage.
2.5 Exit Strategy
If the business is very successful, the partners may seek to sell the business to a third party for a significant
earnings multiple. Most likely, the firm will hire a qualified business broker to sell the business on behalf of
the Brokerage Agency. Based on historical numbers, the business could fetch a sales premium of up to 4
times earnings.
3.0 INDUSTRY OVERVIEW
The life and health insurance industry contributes to the financial well‐being of almost 28 million Canadians,
with 4.8 million in the Toronto Region, by providing a wide range of financial security products such as
individual and group life insurance, individual and group annuities, and supplementary health and disability
income insurance. The industry is a major investor in Canada's economy with total assets of $647 billion,
including $240 billion invested in Ontario. This pool of capital is one of the country's most important and
largest sources of long‐ term institutional investments
There are107 life and health insurance providers competing aggressively across thecountry. Canadian‐owned
firms control 86% of the industry's Canadian assets and are highly successful internationally, with three
companies (two headquartered in Toronto) ranked in the top 15 of the world's largest life insurers based on
market capitalization. Of the 107 life and health insurance providers active in the Canadian market, 53
6. 5
companies are headquartered in the Toronto Region, resulting in the high concentration of employment in the
region. In addition, 43 other life and health insurance providers arelicensed to operate in the region through
their branch offices and local agencies
Life and Health Insurance Key Statistics
As of January 2015 Toronto Region Ontario Canada
Head Office 53 68 107
Employees and Agents 31,100 67,300 150,100
Policy Payments $16.7 billion $36.2 billion $76.2 billion
Premium Income (Life, Health Insurance,
Annuities)
$19.6 billion $42.3 billion $ $92.2 billion
Investments Included
with Ontario
$240 billion $647 billion
Life Insurance Ownership (Individual and Group) $739 billion $1,597
billion
$4,060 billion
Canadians with coverage for: financial protection 4.8 million 10.9 million 28 million
Supplementary health benefits 4.3 million 9.3 million 24 million
Disability Income protection 2.3 million 5.0 million 12 million
Life Insurance 3.7 million 8.1 million 21 million
Source: Canadian Lifeand Health InsuranceAssociation Inc.
Canada's life and health insurance industry has a substantial impact on the well‐being of the people of the
Toronto Region. The industry provides a wide range of financial protection and income security products that
are criticalto protecting the financial future of some 4.8 million residents living in the region with $16.7 billion
in annual policy payments. Among others, the industry:
provides about 3.7 million people in the Toronto Region with $739 billion in life insurance coverageso
their dependents have financial protection in the event of their death. The average amount of
coverage per insured individual was about $197,000, compared with $189,600 across the country. Of
the total life insurance coverage, more than half was individual insurance. During 2013, the industry
paid out $1.9 billion under life insurance policies in the Toronto Region
makes health and disability benefit payments of $6.2 billion to Toronto Region residents, reimbursing
them for health care expenses not covered by government programs, such as drugs and dental
treatment, and income replacement due to disability. About 95 per cent of the total is from group
contracts with employers, unions or other sponsoring organizations.
provides 2.3 million workers in the Toronto Region with disability income protection. During 2013,
Toronto region residents received almost $1.4 billion in disability payments under these plans.
Despite several years of slow-to-no growth for providers of life insurance and annuities in Canada, multiple
opportunities to gain competitive stature beckon nonetheless. Successful providers in 2016 will develop
strategies to provide products to developing consumer markets that are currently underserved. Examples
include the growing, yet unmet, financial protection and savings needs of the mid-market sector and
Generations X and Y.
4.0 PRODUCTS AND SERVICES
Belowisa descriptionof the insurance productstobe offeredby AGHV Insurance Brokerage.
4.1 Insurance Products
The primary revenue streams will come from life and disability insurance products to be underwritten by the
firm’s affiliated underwriter - Manulife Financial.
7. 6
Life insurance pays a tax-free cash benefit to beneficiaries when the policy holder die, which can be used to
pay debts and expenses, provide an income for their family, and leave a legacy to family members or a
charity. In addition, some insurance policies can also build savings they can access while still living. AVGH
Brokerage offersthe followingtypesof lifeinsurance:
Term – flexible andaffordable protectionprovidingcoverage foraspecifiedperiod
Whole life –guaranteed,reliable, andpermanentprotectionthatbuildscashvalue overtime
Universal life –permanentprotectionwithtax-advantagedinvestmentgrowth
Synergy – unique solutioncombiningalife,acritical illnessandadisabilityinsurance policyall in
one affordable package
Disability insurance helps protect peoples’ income if they become disabled and can’t work. Our disability
portfolio, with products and solutions available for full-time, part-time or home-based workers, is the perfect
solution for professionals, business owners, business executives and other employed Canadians. An
individual disability insurance plan can help meet their income requirements so they can concentrate on
recovering and returning to an active life. Whether they need to secure their main source of income or
supplement the coverage you receive from their employer or an association, our firm can help by providing a
comprehensive and portable plan they can rely on throughout their working years. AVGH Brokerage offers
the following types of disability insurance:
Proguard Series - comprehensive income replacement for the changing needs of executives and
professionals
Venture Series- well suited to business owners and employees seeking reliable, cost-effective income
replacement protection.
ExpenseComp- ideal for overhead expense protection if you area small business owner or
professional with fixed business expenses.
Buy-Sell Plus -a great complement to a business buy-out agreement. It offers flexibility and choice in
how to fund the purchase of a disabled owner's share of the business.
Personal Accident- ideal for Non-working (students, at-homes, un-employed, seniors) and working
(full or part-time employees, or self-employed) individuals
Cash Hospital- is ideal for all individuals, couples and families. Can also be used as an alternative to
disability or sickness insurance or travel insurance for those medically uninsurable or to top-up
existing coverage.
5.0 Strategic and Market Analysis
5.1 Economic Outlook
Canada's economy resumed growing in the third quarter, as reported by Statistics Canada, officially ending
the mild recession that hit the country in the first two quarters of 2015. But there arealready signs that the
rebound may not be very robust. The economy expanded at an annual pace of 2.3 per cent in the three
months that ended in September, slightly below economists' expectations of 2.4 per cent growth. A drop in
oil prices means more money in the hands of oil consumers. Lower oil prices help to reduce the cost of living.
With stagnant real wages, this fall in the cost of living is important for giving consumers more discretionary
income, which could lead to higher spending on other goods and services.
5.2 Industry Analysis
While the life and annuity market has been a low-growth to no-growth market for a number of years, there
are a number of underserved and developing areas of opportunity. These include the unmet financial
protection and savings needs of the mid-market segment and Generations X and Y, which continue to grow.
8. 7
To effectively serve these markets and address rising consumer expectations, growth-oriented providers will
incorporate new approaches using digital technologies, data analytics, mobile tools and social media.
Traditional insurance products and distribution channels generally arenot well suited to these markets.
Although the high net worth (HNW) market drives sales and attractsdistributor attention, the challenge for
insurers is to execute an efficient strategy that targets underserved markets without disrupting the HNW
mainstay.
Consumers seek life insurance and annuity products that are easy to understand and compare, and can be
acquired in a streamlined transactional environment. Digitalsolutions promise this greater efficiency, but
many providers have yet to embed technology as an integral part of their culture, and hire the talent to
implement it. Canadian life insurers and annuity providers that recognize the forces of change and take quick
action to leveragemarket opportunities will improve their competitive positions in 2016.
5.3 Customer Profile
Adults in their 30’s in particular for life insurance products. A good percentageof adults get married and
become parents between the ages of 30 to 39. They are sufficiently motivated to provide financial protection
to their loved ones if something happens to them.
Employed adults between the ages of 25 to 65 with particular focus on self-employed individuals lacking
group disability coverage.
6.0. DEVELOPMENT PLAN
6.1. Current Business Status:
The start-up has planned to commence business effective January, 2017. It will offer a wide rangeof life and
disability insurance products to be underwritten by Manulife Financials. Professionalism, real value to
customer, integrity, and financial strength are the key objectives as AVGH insurance brokerage's value and
vision. We have high standards of professionalism and the employees have a high quality of knowledge and
skills. We also provide a high quality of advice and service to our client in order to meet their needs.
Reliability, honesty and fairness are some of the core values of AVGH insurance brokerage. The orientation
that best describes AVGH insurance brokerage would be the marketing/customer orientation.
6.2 General approach:
1. Performance approach: Away to measure operations to ensure the product meets previous
determined specifications and expectations. This would include design aspects, service function and
meeting banking needs. The primary goal is client acceptanceand the most crucial aspect is to
ensure client need satisfaction.
2. Distribution approach: Since the business is offering a product and a service, placing their location
near a readily accessible place is very important. Having the office at an easily accessible location
would benefit the company most rather than making their customers drive far away to get to their
business. By setting the business in a highly populated area would potentially attract more
customers. It was concluded that a location near Banks or malls would be the best. So we choose to
locate our office at the northwest corner of Burnhamthorpe Road and Highway 427, the Royal Bank
Centre. It is a nice office building sharing space with other financial service companies.
3. Positioning approach: As a start-up business, the market we are bringing this business into needs to
be keep in mind, how receptive the target market will be to this venture, affordability, and if there
are any laws or regulations that we need to keep in mind in terms of licensing before starting this
business. Depending on the age, income, occupation, and ethnicity, the consumers would be young
adults to middle age(ages 21 to 54) regardless of gender.
9. 8
4. Promotion approach:
As the competitors have little to no advertising, we can take advantageof this. As for incentives, we
can give benefits for the customers such as special package or discount. As for the introductory
stage, we should try to promote the new product as much as possible by informing them and allow
the customers to be aware of our product. Furthermore, marketing research could help to calculate
the approximate costs of advertising. Following are some tools may be used for promoting the new
product:
Internet: Since social media is becoming very popular, they can look into using social media
sites such as Facebook and Twitter to promote the business. This would probably be the best
advertising tool for the products since it has a wide reach at low cost.
Direct Mail: Using direct marketing such as using flyers and advertisements will be useful. Any
discounts, new packages or offers will be given for the product.
Television: This way has the widest reach of the potential customers and the product could be
presented clearly with video but it has high cost.
Radio: It also has wide reach of target market and costs less. The problems with this method
include the lack of visual and the short exposure periods
Magazines: This method helps the target market become more well-informed about the
product, due to its detailed reach.
6.3. Implementation schedule
There are a number of questions need to be decided upon to sell the new insurance. Is this business
profitable and marketable? Do we have enough capital? How will we promote our new product? According to
the previous general approach, we know the economic trends, cultural and social values, and the threats and
opportunities in the environment that can influence the business. The economic environment will be a main
influence of selling the insurance since insurance is a financial solution and even a kind of investment; the
High PriceLow Price
High Quality
High Quality
10. 9
consumers will need disposable income. Capital is also a key to start selling this new business. To attract new
customers, we need to prove these insurances are suitable and necessary for all the customers. Moreover,
knowing the advantages and disadvantages of the competitors can help we succeed. The objectives are fixing
current problem of the existing business and adding advanced features to fit with the marketplace. The first
constraint that governs all business plan is time. An established schedule needs to be specified and met to
ensure any starting success. Any delays are threats for opposing competition to meet customer needs. This
puts more emphasis and pressure on maintaining time frames and scheduling for the service plan. Following
are the schedule for the development of the business:
To builda name and a reputationof the businessby January 2017.
To train partners to fullyunderstandandmarketthe new service byApril 2017.
To signup at least1,000 clientsforthe new productbyDecember2017.
To builda strongclientbase by2018.
To attract newcustomersandincrease company’sprofitby2018.
To achieve $100,000 inprofitsby September2019.
To expandcompany’smarketshare by2020.
7.0 Marketing Plan
The Insurance Brokerage intends to maintain an extensive marketing campaign that will ensure maximum
visibility for the business in its targetedmarket. AVGH Insurance Brokerage’starget market for life insurance is
healthy young adults to middle age (ages 21 to 54) regardless of gender, income, occupation, or ethnicity.
Ideally we want to attract younger adults with children as these people are in the most need for insurance
because they will suffer the greatest economic loss if unexpected events were to happen to them, so we help
to mitigate these risks. For our disability insurance we want to target healthy self-employed people as their
loss due to disability will be the largest. In any case, the individual needs to be healthy when applying for
coverage in order to qualify. Below is an overview of the marketing strategies and objectives of the
Insurance Agency.
7.1 Marketing Objectives
Ensure sales growth by 5% per quarter.
Reinforce a market imageas the finest service provider in the industry.
Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper
advertisements, and word of mouth.
Develop an online presence by developing a website and placing the Company’s name and contact
information with online directories.
7.2 Marketing Strategies
At the onset of operations, the firm intends to generate sales leads with existing accounts (of the
underwriting firm) through value and collaboration as well as developing a referral network by getting these
customers to recommend and encourage other people they associate with to seek out our products.
Additionally, it expects that local word-of-mouth referrals will also be an immense asset to the business as
the company expands its market reach into other areas of the target market. The business will also develop
numerous relationships with local businesses and professional organizations. Management will also focus on
developing the business name within the community by sponsoring a number of local events and remaining
active in the community. The Insurance Agency will also advertise via the Internetandthroughtraditional
printmediaforthe local markets.Thisstrategywill include listingsinthe local phone booksand
newspapers.
11. 10
7.3 Pricing
Our pricing strategy is premium, but we are supplying premium products and services. We offer 2 kinds of
insurance (life and disability) underwritten by Manulife Financial. The firm expects that the pricing strategy
will work in the target segments as there exists a strong competitive advantage for Manulife Financial.
Manulife Financial is Canada's biggest life insurance company as measured by revenue, so clients can be
assured that the product they are receiving is of quality and the dedicated service team will ensure the
process is handled in a fast and effective manner.
8. Financial Plan
8.1 Underlying assumptions
The firm will have an annual revenue growth rateof 16% per year.
The firm will have a drop-out rate of 2% per year
The firm will acquire $68,000 of debt funds to develop the business
The firm will contribute $20,000 to the business from their own sources
The loan will have a 3 year term with a 12% interest rate.
Start with 55 life insurance policies and 30 disability insurance as sold in the first month of operation
From then the number of policies to grow at 7% with a drop-out rate 2% per month onwards.
Instead of doing loan amortization a fixed amount interest provisions have been made every month.
The other assumptions areas noted in the case.
8.2 Sourceof Capital
8.2. Profit and Loss Statement
Items Jan -17 Feb-17 Mar-17 Apr-17 May-17 June-17
Revenue $11031 $11582 $12335 $12769 $13408 $14279
Operating Expenses $17,799 $17,802 $17,805 $17,808 $17,811 $17,814
EBITDA -$6,768 -$6,220 -$5,470 -$5,038 -$4,403 -$3,535
Interest, Depreciation -$611 -$611 -$611 -$611 -$611 -$611
Provision for Tax - - - - - -
Net Profit $(7,379) $(6,831) $(6,081) $(5,649) $(5,014) $(4,146)
Equity Debt
Series1 20000 68000
20000
68000
0
10000
20000
30000
40000
50000
60000
70000
80000
Source of Capital
Equity - $20,000; Debt-$68,000
12. 11
Items Jul -17 Aug-17 Sep-17 Oct-17 Nov-17 Dec -17
Revenue $14782 $15521 $16530 $17112 $17968 $19136
Operating Costs $17,818 $17,822 $17,825 $17,829 $17,834 $17,838
EBITDA -$3,036 -$2,300 -$1,295 -$717 $134 $1,298
Interest and Depreciation -$611 -$611 -$611 -$611 -$611 -$611
Provision for Tax - - - - - -
Net Profit/Loss $(3,647 $(2,911) $(1,906) $(1,328) $(477) $686.14
The firm makes profit in the month of December 2017, although the cumulative loss stands at $(44,688.59) as
at the end of December 31, 2017. This positive trend will continue to the following years as shown below:
Items 2017 2018 2019 2020 2021
Revenue $176454 $316886 $569081 $1,021,988 $1,835,343
Operating Expenses $213804 $220503 $228057 $586,339 $1,272,364
EBITDA -$37350 $96382 $341024 $435,649 $562,979
Interest, Depreciation -$7338 -S7440 -$7,440 $3140 $3140*
Provision for Tax - -$27951 -$98,897 $126,338 $163264
Net Profit/Loss -$44688 $60991 $234687 $306,171 $396,575
The firm starts making profit from the second year of operation.
The loan is fully repaid in 2019; the partners start taking commissions (@ 50% of sales) in 2020 and 65%
in 2021, the business maintains a steady growth of 30.46% and 29.53% in 2020 and 2021 respectively.
Net Profit Margin is 19.25% in 2018. This tells the firm is making .29cents per sales dollar after all
expenses including taxand loan interests arededucted from sales dollar.
The loan is repaid in full 3 years with an EMI $2239 a month. The principal and interest to be paid in total
is $80,593 against a borrowing of $68,000.
Dollar Returns
Inflow $80,604
$12604 ROI
Initial Investment $68,000
0 1 2 3
Time
Outflow $68,000
13. 12
8.3 Cash Flow Analysis
The cash flow is negative in the first 3 quarters, but the firm will see a positive cash flow in the first year of
operation starting from September, 2017. The positive trend will continue to maintain in times to come.
The detailed cash flows statements aregiven in the appendices.
Operating Activities 17-Jan 17-Feb 17-Mar 17-Apr 17-May 17-Jun
Funds from Operations 11,030.63$ $ 11,582.16 $ 12,161.26 $ 12,769.33 $ 13,407.79 $ 14,078.18
Funds to operations -$ 14,660.15 -$ 14,662.91 -$ 14,665.81 -$ 14,668.85 -$ 14,672.04 -$14,675.39
Net Operating Cash Flows -$ 3,629.53 -$ 3,080.75 -$ 2,504.54 -$ 1,899.52 -$ 1,264.25 -$ 597.21
Investing Activities:
Capital Expenditure -$ 36,200.00 $ - $ - $ - $ - $ -
Net Investing Cash Flow -$ 36,200.00 $ - $ - $ - $ - $ -
Financing Activities
Partners Equity $ 20,000.00
Debt $ 68,000.00
Debt Repayment -$ 2,238.70 -$ 2,238.70 -$ 2,238.70 -$ 2,238.70 -$ 2,238.70 -$ 2,238.70
Net Financing Activities $ 85,761.30 -$ 2,238.70 -$ 2,238.70 -$ 2,238.70 -$ 2,238.70 -$ 2,238.70
Cash Surplus/Deficit $ 45,931.77 -$ 5,319.45 -$ 4,743.24 -$ 4,138.22 -$ 3,502.95 -$ 2,835.91
17-Jul 17-Aug 17-Sep 17-Oct 17-Nov 17-Dec
Operating Activities
Funds from Operations 14782.09 15521.20 16297.26 17112.12 17967.73 18866.11
Funds to Operations -14678.91 -14682.61 -14686.49 -14690.56 -14694.84 -14699.33
Net Operating Cash Flows 103.18 838.59 1610.77 2421.56 3272.89 4166.78
Investing Activities:
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00
Net Investing Cash Flow 0.00 0.00 0.00 0.00 0.00 0.00
Financing Activities
Partners Equity 0.00 0.00 0.00 0.00 0.00
Debt 0.00 0.00 0.00 0.00 0.00 0.00
Debt Repayment -2238.70 -2238.70 -2238.70 -2238.70 -2238.70 -2238.70
Net Financing Activities -2238.70 -2238.70 -2238.70 -2238.70 -2238.70 -2238.70
Cash Surplus/Deficit -2135.52 -1400.11 -627.93 182.86 1034.19 1928.08
14. 13
8.5 Balance Sheet
Assets 2017 2018 2019 2020 2021
Cash $ 24,373.57 $ 40,558.18 $ 189,739.40 280,112.68$ 359,762.45$
Bank Balance $ 18,095.23 $ 29,251.66 $ 21,119.30 19,344.04$ 13,553.45$
Commission Balance Receivable $ - $ - $ - -$ -$
Other Current Assets $ - $ - $ - -$ -$
Total Current Assets $ 42,468.80 $ 69,809.84 $ 210,858.70 $ 299,456.72 $ 373,315.90
Fixed Assets:
Furniture x2 $ 2,160.00 $ 1,920.00 $ 1,680.00 $ 1,440.00 $ 1,200.00
Computer $ 5,400.00 $ 4,800.00 $ 4,200.00 $ 3,600.00 $ 3,000.00
Equipment $ 900.00 $ 800.00 $ 700.00 $ 600.00 $ 500.00
Vehicle $ 22,800.00 $ 20,600.00 $ 18,400.00 $ 16,200.00 $ 489,000.00
Stocks and Bonds $ 91,000.00 $ 200,000.00
Commercial space $ 350,000.00
Other Fixed Assets
Total Fixed Assets $ 31,260.00 $ 119,120.00 $ 224,980.00 $ 371,840.00 $ 493,700.00
Total Assets $ 73,728.80 $ 188,929.84 $ 435,838.70 $ 671,296.72 $ 867,015.90
Liabilities:
Loan from Eric Clapton $ 53,728.80 $ 26,864.40 $ - $ - $ -
Total Liabilities $ 53,728.80 $ 26,864.40
Partners Equity $ 20,000.00 $ 20,000.00 $ 20,000.00 20,000.00$ 20,000.00$
Addition to Retained Earnings $ - $ 142,065.44 $ 415,838.70 651,296.73$ 847,015.89$
Total Liabilities and Equity $ 73,728.80 $ 188,929.84 $ 435,838.70 $ 671,296.73 $ 867,015.89
Balance Sheet
Current Ratio – 1.5 in 2017; 2.60 in 2018 and there areno current liability thereafter. This means the firm has
1.5 and 2.6 times more current assets than its current liabilities.
Debt to Equity Ratio is 2.68 in 2017 and 1.33 in 2018 and 2019. This means for every dollar owned by the
partners, the firm owes 2.68 and 1.33 dollars respectively to the creditor in first 3 years of operations. The
situation fully changes in 4th and 5th year once the loan is repaid.
The debt to asset ratio is much stronger. From first of operation, the firm will have more assets than debt.