Situation: A CEO from a publicly traded insurance company authored a new commercial insurance business model that could capitalize on the connectivity of the Internet and the need for profitable business within the industry.
However, his Board of Directors would not allow him the time to form and/or lead the new entity to be named InsureTrade.
Plan of Action: Take the business outline of the proposed company and insure that it would have market acceptance before seeking funding and/or building infrastructure. The steps taken included:
- Building a presentation model that would illustrate the key points and advantages of the proposed business model.
- Interviewing key industry executives in the accounting, insurance and insurance distribution fields.
- Insure that the business model was valid.
- Secure a monetary commitment from potential future clients.
Results: Over a period of two months the model was demonstrated to key individuals, decision makers and Boards of Directors. The following was accomplished:
- Every presentation secured a positive response to the business model.
- A total of 37 insurance brokers agreed to use the model.
- A total of 5 insurance companies agreed to use the model.
- A total of 147 policies were represented.
- An average of $3,400.00 per policy.
- A total of $500,000,000.00 (+) in process premium was secured via financial commitment.
- This allowed the company to secure $5.3 million in initial funding to build the infrastructure.
- I was hired as the company’s first President and CEO.
- The company’s infrastructure and website was completed and profits were generated within eleven months from the date the company began.
- The company grew to $1,256,000,000 in processed premium in the first 20 months.