How to Start a Successful Insurance Company: Overcoming Internal and External Challenges

Name Professor Course code Date Insurance Operations The name of the company is Buma insurance company. The company operations are on personal lines on homeownership, auto physical damage and ownership, insurance products, and commercial insurance policies. Starting an insurance company is not an easy task, and it may be faced with internal and external constraints that may hinder the company from achieving its goals. The internal constraints include expertise, size, efficiency, and financial resources. Buma is a small company, and size matters in business. A large company attracts many customers who pay a relatively higher premium hence maintaining its financial stability. Efficiency is defined in terms of technology and management, which can hinder the company from achieving its goals if not advanced. Lack of expertise can derail the company’s expectations since the consumers can shun away from poor service delivery. Buma is a new company, and financial resources can hinder an established company requiring adequate capital, which can be a nuisance. The external constraints include; government policies and regulation, competition, economic conditions, and marketing techniques. Government policy creates bureaucracy which hinders the workability of companies. When the economy is down, many businesses have little to spend on insurance. An economic crisis can greatly influence Buma. Buma is a new company and likely to face competition from established companies. Bu