What are the costs of first night up an insurance company?
Hi everyone.
Say if I want to open up an insurance company, what kind of cost should I be expecting? Costs include material ones such as the amount of assets required and the relevant operating costs, immaterial costs such as have to find out what kind of regulation to meet the terms and to what extend is the potential risk I will be in for?
Just costs similar to the above examples. Plesae, help me to find out these costs.
Answers:
Well...
The plain one that comes to mind is:
'Enough money to cover damage/theft to the property/items that you company will provide coverage for'.
Other Answers:
probably more than you can afford.
if you provide $100 000 worth of cover you need $100 000 (plus operating costs)
I can't remember what the bonding requirements are surrounded by the state of CA. You can look it up on your state's department of insurance website. That will answer most of your questions.
Operating costs would be your typical:
member of staff salaries
overhead
insurance for E&O
investment bank fees
bean counters need to be remunerated too
marketing & advertising
The amount of property required would be dependent on the type and size of insurance company you opened.
The one ? it will not answer is the potential risk. You can risk it adjectives if you don't have ample reserve to cover a catstrophic loss, such as an earthquake, flood, or hurricane.
You can start by building an insurance agency, and you can do that with a processing payment of $100 and the cost of your licensing. Contact me if your interested.