Quaestor Services

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Insurance Agency Business Plan

Market Analysis Summary

The market area for Quaestor Services will be focused on three counties, Pleasant, Niceburg and Contented, in Plainstate. These counties are experiencing a combined average growth in population over the 2000 census of 6.45%.

As of 2004, the Whelnoan Insurance Company is the second largest insurance company in Plainstate with 23% of the market share. The overall market for Quaestor is wide open. This business plan has identified over 1.3 million individuals and business as potential clients in the market area.

4.1 Market Segmentation

Quaestor Services has targeted the following market segments:

-StatePleasantNiceburgContentedTotal    %
YR 2004 Estimate-Total Population4,814,628545,991560,265284,0321,390,288  28.9%
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YR 2004 Estimate-15 to 24 years old528,756 55,26460,50919,652135,425  25.6%
YR 2004 Estimate-24 to 74 years old2,224,217255,517265,626136,052657,195  29.5%
Available Market Share 77%2,752,973310,781326,135155,704792,620  28.8%
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YR 2004 Estimate-Total Housing Units2,244,113237,308279,91297,555614,774  27.4%
Available market Share 77%1,727,967182,727215,53275,117473,376  27.4%
Housing Units-Owner Occupied1,162,922124,254113,15466,028303,436  26.1%
Housing Units-Renters119,2309,50213,3637,88730,752  25.8%
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YR 2004 Estimate-Small Bus > 20 Emp122,452---94,288  77.0%

The available market share of 77% represents the market that Whelnoan Insurance has not captured at this time. Although,the entire state is an available marketing area, the tri-county area will be the focus marketing area at this time. The total population of the tri-county area available for marketing is 29% of the total available population in Plainstate. 

The first and most important market segment is population broken down by age groups. This can be used for determining the market for personal lines of insurance such as auto and various recreational vehicles, life and life planning products.

Note that the population of 15 to 24 year olds has been separated from the available population as a market segment in itself for determining the possibility of high risk auto insurance policies.

The second market segment is housing units broken down by owner occupied and renters. This can be used for determining the market for personal lines of insurance such as home, townhouses, condominium, renters and mortgage protection.

The third market segment is small businesses with less than 20 employees. This can be used for determining the market for accounting and bookkeeping services and commercial lines of insurance including property and casualty, retirement and workers compensation.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Focus Population (Ages 15 to 24 years old) 6% 135,425 144,160 153,458 163,356 173,892 6.45%
Focus Population (Ages 25 to 74 years old) 6% 657,195 699,584 744,707 792,741 843,873 6.45%
Small Business (Less than 20 employees) 6% 94,288 99,757 105,543 111,664 118,141 5.80%
Focus Housing Units (Owned) 12% 303,436 339,059 378,865 423,344 473,045 11.74%
Focus Housing Units (Rented) 12% 30,752 34,362 38,396 42,904 47,941 11.74%
Total 7.93% 1,221,096 1,316,922 1,420,969 1,534,009 1,656,892 7.93%