According to the requirements of the law, every car in Russia is insured. But the validity of the insurance contract is limited, and when it expires, it’s a busy time for the car owner. You need to compare a lot of offers and visit more than one website or office in order to finally find a company that will suit you with the price of the offer, conditions and level of service.

There are more than fifty million motorists in Russia who are forced to undergo this stressful procedure year after year. Many insurance companies take advantage of the haste and impatience of potential clients by introducing obscure clauses into insurance contracts, which in a controversial situation deprive the client of many benefits.

Fortunately, ordinary citizens are quite capable of streamlining this process.

There is no need for every car owner to waste time searching for a suitable insurer, to deal with queues and other inconveniences. All necessary procedures can be followed without even leaving your own home or office. Moreover, everyone wins in the end.

The ability to purchase OSAGO and CASCO policies via the Internet has revolutionized the insurance market.

This method of sales allowed insurance companies to optimize the costs of operating personnel and equipment, and many of them began to offer significant discounts when purchasing via the Internet.

Internet technologies significantly save clients’ time and relieve pressure on the offices of insurance companies, reducing paperwork and cash handling. The quality of service becomes more controllable, and its level increases.

The client himself determines the most convenient time for him when he can contact the insurer’s office for a ready-made policy, or order an additional service of delivering documents to a convenient location. The funds from which these services are financed are freed up due to significant unloading of offices, and the cost of the policy for clients remains virtually unchanged.

Procedure

1. First, you need to place an application for the type of policy the client is interested in on the company’s website in a special subsection.
2. Processing the request takes minimal time. Courier delivery also ensures that the client receives documents as quickly as possible.
3. Transfer of money to pay for the policy is carried out immediately upon receipt.
4. For the intermediary, thanks to whom the client chose this particular insurance company, a commission bonus of up to fifteen percent is provided.

Interesting information about car insurance.

Given the huge number of car owners in our country, competition in the car insurance market will remain quite soft for a long time - in terms of the number of financial institutions (in particular, insurance companies) in the market, we seriously lag behind civilized countries.

The growth in the number of private cars in our country is one of the highest in the world. Between 2009 and 2014, for example, their number doubled, and the growth rate here is projected to slow down slightly.

Legislation in the field of auto insurance often changes, as a result of which insurers sometimes artificially delay the issuance of policies, awaiting the adoption of the next amendments beneficial to them.

At such moments, there is often a rush among motorists, and the services of various types of intermediaries when applying for insurance become especially in demand. Internet technologies allow such intermediaries to simultaneously optimize their own costs.

The competition among such agents is so insignificant that it cannot be discussed seriously.

Experience in implementing CASCO and OSAGO using the Internet

With a fairly small number of agents operating on the market, it is quite possible to count on a significant level of regular clientele - from several dozen to hundreds of people.

The cost of comprehensive insurance for a new imported car usually amounts to several hundred thousand rubles. The commission can reach forty to fifty thousand.

The psychology of domestic drivers is such that they rarely change their intermediary agent unless serious problems arise with him.

Several factors contribute to this loyalty:

• A successful experience using the services of an agent provides psychological comfort and a feeling of reliability.
• Clients strive to save themselves the hassle and save time.
• The Internet makes the transaction cheaper.
• Insurers provide discounts for regular customers.

Main conclusions drawn from experience:

1. If there is significant interest on the part of clients, such a service is organized without any significant investments on the part of the intermediary himself.
2. There is no need to become a full-time employee of the insurance company.
3. A significant part of the procedures can be carried out right at home.
4. Requires only a minimum of technical knowledge to operate a computer and basic business etiquette.
5. With mobile Internet, there is no need to be constantly tied to your workplace.
6. The usual amount of commissions from one transaction reaches twelve to fifteen thousand rubles.

* 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 area. 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.

Increase sales without investment!

“1000 ideas” - 1000 ways to differentiate yourself from competitors and make any business unique. Professional kit for developing business ideas. Trending product 2019.

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.

Ready ideas for your business

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.

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.

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.

More than 80% of information about the agency should be of an image nature and aimed at creating a positive view of your agency from the point of view of buyers of insurance services.

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.

Car insurance. How to start an insurance business

The insurance business in Russia is one of the few areas that, even today, during a protracted economic downturn, does not lose its relevance. Therefore, in this publication we would like to consider the question that interests many: how to become an auto insurance agent.

Let's try to figure it out

Before we talk about the steps you need to take to start this business, you need to decide how exactly you want to implement it. To do this you need to answer the following questions:
Do you want to be an agent for a company or represent several?
Do you have enough resources to implement this idea?
What kind of car insurance services do you want to provide?
And only after you have determined all these nuances, you can begin to draw up a business plan and calculate your potential profit.
Well, now, the actual plan on how to become an auto insurance agent.
1. Analyze the market and determine the circle of potential companies with which you would like to cooperate;
2. Organize contacts with the selected companies, receive a list of necessary documents. Study it and prepare a complete package;
3. Compose your resume, try to describe in detail your experience and personal qualities that allow you to work in this field;
4. Attend the interview and try to make the best impression;
After all stages have been completed, you can begin your activities. You can start your activities! In order for your business to be successful, attend sales training, study all the information that will help you master the technologies of attracting new customers. This must be done even if you consider yourself to have similar experience.

Auto insurance as a business

After the initial stage in the career of an insurance broker has been completed, it is time to think about how to reach the next stage and open an office selling insurance contracts. According to many experts, car insurance has the greatest potential in the range of insurance products.
In theoretical terms, the insurance process is a type of relationship between an insured and an insurer interested in protecting their property interests and liability from any unpleasant consequences. To do this, an insurance agreement is concluded between the parties, which specifies the amount of the contribution, the amount of payments and the procedure for their implementation.
On the other hand, the insurer’s responsibility includes the formation of a certain insurance fund, from which, in the event of an insured event, compensation is paid within the framework specified in the contract.
When thinking about how to open car insurance, be it a representative office or a newly created company, it is important to understand that the goal of the insurer, like any entrepreneur, is profit. In this case, its volume will entirely depend on the number of transactions concluded, namely on the volume of sales of CASCO and MTPL policies. In turn, profit, as well as the size of the insurance fund, is a guarantee of the company’s stability.
Based on the practice of Russian companies, in order to achieve success, it is necessary to conduct their activities in several directions at once. This is due to the fact that, firstly, sales of compulsory motor liability insurance are strictly regulated by current legislation. And since in this case the insurer cannot in any way influence the final price of the insurance product, then, according to most experts and analysts, a business solely on the sale of compulsory motor liability insurance policies is not initially profitable. Secondly, such a multi-purpose project has a greater chance of success from a commercial point of view.
On the other hand, the implementation of CASCO policies has a deeper potential than simply the implementation of insurance contracts. So, in this case, the entrepreneur has more freedom in setting tariffs and coefficients.
But even in this case, it is impossible to say for sure which car insurance is better from a business point of view. Both programs have their own nuances. Thus, OAGO practically does not bring profit, but CASCO insurance has a low level of popularity due to its high cost.
The combination of these two forms is considered the most rational way of doing business. In addition, the provision of additional services, such as:
Expert and appraiser services;
Advisory assistance after an accident;
Technical assistance;
Other insurance products.
The listed services can be added as additional options to the CASCO insurance policy.
These were the general concepts about auto insurance products. Now let's talk more specifically.

How to open auto insurance (office)

In order to open a point selling CASCO and OSAGO policies, you must first choose the right premises. In order for your costs to be justified, your office must be located simply in a good location, but where a large number of your potential clients are possible.
According to most businessmen, before reaching a new level and wondering how to open an auto insurance office, you need to carefully calculate everything. Otherwise, the enterprise being organized may not recoup the investment, and the novice businessman will fail.
A good place to open an auto insurance office today can be various shopping centers, business centers and other similar places.

What documents are needed for car insurance?

Like any other, auto insurance as a business is, first of all, a registered company, the form of ownership of which is selected depending on the goals and scale of the project being implemented.
If we are talking about creating an insurance company, in this case, in addition to registering a legal entity, an appropriate license will be required, which can only be obtained if the company’s authorized capital is fully contributed in the amount of at least 120 million rubles.
If an entrepreneur intends to operate as an insurance agency, which essentially means conducting an intermediary business, the following will be necessary:
Register an LLC or individual entrepreneur;
Conclude agency agreements with partner insurance companies;
rent an office;
It seems to us that it is quite clear what documents are needed for car insurance.

How to Become a Home Auto Insurance Agent

Modern technical capabilities, combined with changes in insurance legislation and the introduction of electronic certificates, have led to the fact that today you can conduct an insurance business without leaving your home.
If you're wondering how to become a home-based auto insurance agent, the answer is obvious. You need to create a thematic portal through which you can offer all its visitors the insurance offers you have.
However, you should not think that such a business concept will automatically generate income. Working via the Internet is work that takes not only time, but also requires constant investment of other resources, such as money and a constantly updated knowledge base of the owner of such a business.
At the end of the publication I would like to dwell on one more important point. When choosing auto insurance as a field of activity, which companies are best to choose as a partner.
In fact, answering this question, it is very difficult to give specific recommendations, but we want to highlight a certain group of criteria that can be used when choosing a business partner.
The insurance company whose insurance products you are going to sell must have:
reliable reputation;
stable history;
comfortable conditions for cooperation;
extensive branch network.
This is not the entire list of aspects that you should pay attention to. However, even this is enough to understand in which direction it is necessary to move further.

Insurance today is considered one of the most promising and fastest growing areas of Russian business. The generally accepted classification includes three main types of insurance: personal, property and liability. Auto insurance should be highlighted in a special category, which attracts more and more entrepreneurs every year.

The interest shown by enterprising people in this type of activity is understandable - the number of cars is steadily growing, and at the same time the share of vehicles purchased on the primary market is growing. Most people who buy a new car prefer to protect themselves from the risk of damage or theft of property by concluding a CASCO agreement. In addition, motor third party liability insurance (MTPL), recognized as mandatory in our country since 2003, does not lose its relevance today. Learning how to open an auto insurance office and what types of work patterns exist in this industry will help you establish your own business with good prospects.

In a broad sense, insurance is a special type of relationship between two entities, one of which, the policyholder, is interested in protecting himself, his property and his liability from the occurrence of all kinds of adverse events. For this purpose, he enters into an agreement with the insurer, which necessarily specifies the object of insurance, the amount of the insurance premium, as well as the amount and procedure for making payments.

The insurer, in turn, having a certain capital, assumes obligations to compensate for damage to the policyholder upon the occurrence of an insured event within the framework established by the contract and current legislation. The goal of any insurer, as an entrepreneur, is to make a profit, and the effectiveness of such a business directly depends on the number of transactions concluded. You can ensure the financial stability of your enterprise only by creating a sufficient insurance fund.

Important! You must understand that insurance in general, and car insurance in particular, is a rather risky activity, since the occurrence of an insured event, and therefore the need to make payments several times higher than insurance premiums, does not depend in any way on the entrepreneur providing such services.

As for the objects of activity, auto insurance as a business provides for 2 fundamentally different areas:

• CASCO property insurance is voluntary, the object is the car itself, it is insured against possible damage, as well as theft;
• compulsory liability insurance OSAGO - the object is recognized as the property interests of the car owner, which are associated with obligations arising as a result of harm to the health and life of third parties, as well as their property (in other words, in the event of an accident that occurred through the fault of the insurer, possible damage to the participants in such an accident is compensated insurance company within the framework specified in the contract).

As domestic practice shows, it is inappropriate to work in only one direction. The fact is that compulsory motor liability insurance is strictly regulated by government authorities; tariffs for this type of insurance are set exclusively by the Government of the Russian Federation. The insurance entrepreneur cannot influence the final cost of the policy. According to experts, a business designed only for the sale of MTPL insurance is obviously unprofitable.

In turn, CASCO opens up good opportunities for the insurer to earn money, as it involves independent management of tariffs and adjustment factors. However, due to its high cost, and also because it is not mandatory, CASCO is in much less demand among car owners.

The optimal solution for a car insurance business is to combine both directions, as well as provide additional paid services, for example:

• assessment and examination;
• assistance in case of road accidents;
• life insurance;
• providing technical assistance in case of an accident.

All these items can be included in the cost of insurance.

Having gained a general understanding of car insurance, let’s look at issues related to organizing a business.

The World of Business website team recommends that all readers take the Lazy Investor Course, where you will learn how to put things in order in your personal finances and learn how to earn passive income. No enticements, only high-quality information from a practicing investor (from real estate to cryptocurrency). The first week of training is free! Registration for a free week of training

If you are aiming to create your own business selling auto insurance products, you can follow one of the paths presented below. The choice will depend primarily on what starting capital you have, as well as on the scale of the enterprise you want to build.

Option 1. Creation of an insurance company

This option is the most expensive and time-consuming. When opening an insurance organization, you must be guided by the requirements of Russian legislation, namely:

• Chapter 48 of the Civil Code of the Russian Federation;
• Law “On the organization of insurance business in the Russian Federation”;
• Federal Law No. 40-FZ “On compulsory insurance of civil liability of vehicle owners.”

According to the above regulatory documents, the insurance company must have the status of a legal entity, that is, in order to obtain a work permit, it is necessary from the tax service.

In addition, such a company will need a license to carry out insurance activities. Since 2013, the licensing authority has been the Insurance Market Department of the Central Bank of the Russian Federation. To obtain a license, it is necessary to provide the licensing authority with documents indicating that the organization has an insurance reserve sufficient to conduct its activities. The main requirement is the presence of fully paid authorized capital in the amount of at least 120 million rubles.

Important! It is not allowed to contribute borrowed funds and pledged property to the authorized capital.

The requirements for a licensee in the case of auto insurance also include:

• minimum work experience in the field of CASCO and OSAGO insurance – 2 years;
• the presence of an authorized representative in each of the constituent entities of the Russian Federation;
• access to an automated compulsory insurance system;
• membership in a professional association, which is the Russian Union of Auto Insurers (RUA), etc.

The law also establishes requirements for the insurance portfolio of such organizations. The amount of insurance premiums (contributions) that fall on MTPL and CASCO insurance in the total volume should not exceed 50%. That is, a company cannot only engage in vehicle and civil liability insurance; the scope of its services must be much broader to ensure financial stability.

It follows from everything that in order to open your own insurance company, you need to have large start-up capital and significant experience in the insurance industry. But along with this option, there are other, more affordable ways to make money on car insurance.

Option 2. Working as an agency

This is a simplified option for carrying out insurance activities and, in fact, it represents an intermediary scheme. That is, you do not need to create a legal entity and obtain the appropriate license. You can work as an individual entrepreneur and represent the interests of several existing insurance companies at once.

How to open a car insurance office? To do this you need to follow a few relatively simple steps:

• select the companies with which you will cooperate and make a request to conclude an agency agreement;
• pass interviews and prove your usefulness to representatives of insurance organizations, conclude contracts and, if necessary, undergo training (requirements for agents may vary);
• rent and equip office space with Internet access;
• organize advertising of your services.

The profit of such a business will consist of an agency fee, provided as a percentage or a certain amount from each issued policy. Your effectiveness will depend entirely on your communication skills, activity and professionalism. More clients - more insurance issued - more profit.

The amount of monetary remuneration for agents is not usually disclosed openly; it can be clarified with representatives of a particular insurance company in person. If you believe the reviews of already operating agencies, earnings range from 10 to 30% of the cost of the policy.

The advantages of this format of work compared to opening your own insurance company include the fact that the entrepreneur risks virtually nothing. If an insured event occurs, cash payments are made by the insurer whose product was sold to the client.

Important! The insurance agent is responsible for maintaining the insurer's trade secret data, non-disclosure of personal data of clients (policyholders), as well as for the safety of funds received from policyholders and the proper use of insurance policy forms.

Opening an insurance agency according to the specified scheme is the most common option for a car insurance business, which does not require significant financial investments at the start, and at the same time, allows you to earn good money.

More details about the principles of operation of the insurance agency are described in the following video:

Option 3. Brokerage activities

Another option to build in the auto insurance industry is to become a broker. A broker is a classic intermediary. His difference from an agent is that he cannot represent one of the parties to the insurance contract. He has the right to act in the interests of one party or another as an independent insurance subject.

Thus, when carrying out brokerage activities, an entrepreneur on contractual terms can receive monetary compensation either from the insurer or from the policyholder (only from one party) for performing certain functions. Most often, it is policyholders who resort to the services of brokers, the most popular of which are:

• consulting in choosing an insurance company;
• assistance in drawing up a contract;
• selection of the optimal insurance product;
• support and amendments to the contract, etc.

The services of such intermediary enterprises are usually paid in the form of a set fee.