Market segmentation (which segments will you target)
Products/services and target market(s)
Promotions and advertising
Evaluation of marketing
Legal and licensing requirements
Organisational structure and staffing
Insurance and security issues
Critical risks/contingency plans
Capital expenditure forecast
Cash flow forecast
Projected profit and loss statement
Owner's personal expenses (continued on next page)
Environmental responsibility and Eco-sustainability
Conclusions and future directions
Business Plan Structure
The business plan will focus on establishing a new kind of insurance company in Australia called Jade Insurance. Their basic goals are to offer clients with low cost solutions, better service and more personal attention on host of products. This will be achieved through working with local and overseas carriers. The idea is to meet all of the customer's needs for coverage without dramatically increasing their overall expenses. This will reduce the negative impact on the client, their family and the community by offering them with added amounts of protection. The company will serve as a private carrier and as an intermediary from reinsurers to consumers. (Insurance Facts and Figures 2012) (Underinsurance Statistics 2013) (Anderson 2009) (Kinder 2002)
This is addressing a need, with most Australians lacking adequate insurance protection. Evidence of this can be seen with observations from Investment and Financial Services Association of Australia. They found that most people are under insured and risk the possibility of facing significant challenges from a catastrophic event. According to the report, there are a various issues impacting the public with it saying, "Australia is one of the few developed nations in the world that is highly underinsured. In fact, Australian underinsurance is being seen as a grave matter even by the Australian government as it could cost the government billions of dollars in the forthcoming years. If Australians do not have adequate insurance in place in terms of life insurance, disability insurance, health insurance, and even income protection insurance, then the financial burden that arises from a serious illness or an unfortunate accident can cause severe hardships that the average family may not be able to survive. It is estimated that at least 20% of the Australian population between the ages of 21 and 64 will suffer some unfortunate event in their lives that will leave them incapable of working. Those with dependents were under-insured by $1.37 trillion. Simply put, only 4% of our population that has children have a sufficient amount of insurance. This places them at a substantial risk in the event of an unfortunate incident or accident." These conclusion are showing how there is the need for these products and services. (Insurance Facts and Figures 2012) (Underinsurance Statistics 2013) (Anderson 2009) (Kinder 2002)
Jade Insurance is focusing on offering consumers with competitively priced insurance products for a fraction of the cost of other carriers. At the same time, they will work with numerous insurance companies throughout Australia and around the world to locate the best services. This will offer clients with more protection in the areas of life, retirement, property and planning. The larger selection of choices, allows agents to locate the right solutions in achieving the customer's overall objectives. This is when the firm will transform the marketplace through providing value and better service. (Insurance Facts and Figures 2012) (Underinsurance Statistics 2013) (Anderson 2009) (Kinder 2002)
There are a number of goals the firm will concentrate on. This will take place over the short and longer term time frames. In the case of short-term objectives, there are several areas the company must aggressively peruse. These include:
Building a diverse client base.
Offering customers with competitive solutions.
Working with stakeholders to create win -- win scenarios for everyone.
Increasing the profit margins of the organization by at least 25%.
Adding to the total number of customers the company is serving.
Motivating employees about the long-term benefits they will receive from their affiliation with Jade Insurance.
Establishing offices in areas that will attract local cliental tell who are seeking one on one service.
Utilizing traditional and online media to build the brand image of the firm. (Insurance Facts and Figures 2012) (Underinsurance Statistics 2013) (Anderson 2009) (Kinder 2002)
While the longer term goals of the firm include:
Creating new solutions to more effectively address the needs of customers.
Building strategic alliances with competitors to improve regulation and transparency.
Working with Australian and overseas regulators to create a universal structure that can be used for the industry worldwide.
Enhancing the ability of regulators to identify and deal with critical challenges early.
Evolving with the changing needs of customers through offering new products that have added flexibility.
Establishing strong working relationships with stakeholders via effective communication, collaboration, teamwork and innovation.
Creating an atmosphere of professionalism that will support the interests of employees.
Encouraging everyone to give something back to the communities they live in through volunteer service in numerous public works related projects.
Establishing strong multi-generational relationships with customers.
Enhancing capital reserves beyond regulatory guidelines.
Ensuring everyone is following the highest ethical standards. (Insurance Facts and Figures 2012) (Underinsurance Statistics 2013) (Anderson 2009) (Kinder 2002)
These objectives will help the company to redefine the way insurance products are sold to customers and the kind of rapport that exists with employees. It is at this point, when the firm's brand awareness will dramatically improve. (Insurance Facts and Figures 2012) (Underinsurance Statistics 2013) (Anderson 2009) (Kinder 2002)
The marketing strategy will concentrate on taking a more nationalized approach. This will occur through establishing the image of the firm on this level in order to enhance brand awareness. At the same time, the company will use local resources to create a personalized one on one relationship with customers. The combination of these factors will work together to attract clients from various demographics. It is at this point, when the firm can address their needs and offer greater levels of protection to a larger demographic of consumers. (Insurance Facts and Figures 2012) (Underinsurance Statistics 2013) (Anderson 2009) (Kinder 2002)
The insurance market in Australia is current valued at $58 billion. There are a total of 25 providers. They employ 21,860 people. The annual growth for the sector is 4.5%. This represents a small segment of the population who will need these services in the future. According to the Australian Prudential Regulation Authority, the marketplace is expected to grow exponentially within the next few years with them saying, "The insurance industry in Australia has undergone a paradigm shift in regulations and operating environment over the past few years. The growth in the insurance market has been aided by both an expanding economy and population level that have grown from 15.6 million in 1985 to 22.6 million in 2012. It has evolved in the past few years with the improvement in the financial regulation of the country. The market is expected to grow at a CAGR of 9.1% from FY'2013-FY'2016. The growth in the market will be promoted by the improving economic growth, rising population, surging automobile sales and increasing trend of online selling. Rising online selling with the increasing internet users and surging sales of Superannuation Guarantee insurance are expected to drive Australia insurance market positively in the next four years." (Insurance Facts and Figures 2012) (Market Presentation 2013) (Anderson 2009) (Kinder 2002)
This is showing how the insurance industry has evolved to the point where there is the need for numerous products. Part of the reason why this is occurring is from: improved regulations and the ability of firms to offer cliental with some kind of guarantees. This takes place through the strong fiscal position of the numerous carriers they are working with. In the next several years, this will result in more people seeking out these services to reduce their risks and enhance protection. (Insurance Facts and Figures 2012) (Market Presentation 2013) (Anderson 2009) (Kinder 2002)
At the same time, many customers are turning to direct providers who can sell them a host of products. This means that the marketplace is changing. The biggest challenge is most carriers have not been able to become a hybrid of these models. Jade Insurance will utilize the combination of them to create an all encompassing strategy. (Insurance Facts and Figures 2012) (Market Presentation 2013) (Anderson 2009) (Kinder 2002)
The segment that will be targeted is those individuals who range from 18 to 85. Inside the different categories, are specific areas where there will be a need for a variety of life insurance and retirement products. The most notable include: those who are building for the future, wanting to create an estate (i.e. legacy) and people who require additional sources of income. These products will help customers to build and plan for any events. This is the point, when they will be better prepared for a host of unforeseen and anticipated…