Case ID: 692015     Solution ID: 36860     Words: 1948 Price $ 45

Manzana Insurance Fruitvale Branch Abridged Case Solution

Abstract

Manzana Insurance, as indicated by the execution figures on Property Insurance for the second quarter, has procured keep going spot on the rundown once more. It is dealing with code of offering priority to, besides, gainful i.e. RUN and RAP. Furthermore, in doing as such it has gotten itself in a circumstance where the normal time for restoration has expanded definitely, bringing about late and loss of reestablishments. As indicated by figures gave, around 44% of the restorations are late where as recharging misfortune rate is 47%, which is high and is bringing about doomed benefit because of disappointment and possible loss of clients (Martins).


Agents who do not receive a new quote on or before the expiration date commonly recommend a different company to their clients resulting in renewal losses by Manzana, which eats away a major part of the company's revenue.

This would create more efficiency in both covering any variability that arises as well as increasing capacity. This would cost upfront money in system updates and training, but in the long run it would make the system run more smoothly. Another issue that must be addressed id the fact that the RUNs and RAINs are getting priority over the RERUNs which is much more profitable then both. This is due to the fact that it is more profitable for the senior underwriters to process the RUNs and RAINs first because there is a bonus associated with the new policies issued. This causes the RERUNs to get backed up leading to renewal losses which equal lost profits. This incentive program needs to be re-evaluated to determine if it is what's best for the company. The FIFO system that is supposed to be company policy is not being followed especially in the Underwriting department. This needs to change and be strictly followed this will allow the company to be able to process the RERUNs more effectively. This raises another issue which is when to release the RERUNs to the DC's so they can get quotes to the agents on or before the expiration date. 

The company will be sacrificing the personal relationships with the agents, but it will reduce the renewal losses and give the company a better chance at the new policies because the turnaround times will be reduced. The last issue that needs to be addressed is the current system of measuring TAT time, because the current system is outdated and inaccurate. It has already been shown that the flow rate needs to be determined by the bottleneck resource which is DC's. 

There are several problems with the current system at Fruitvale, Firstly the system is running dangerously close to the efficiency this first and foremost needs to be addressed in the DC department as well as the underwriters department.



Read More

Excel Calculations

Questions Covered

1- What operational problems is Mazana facing?

2- How might they be connected to the deteriorating profits experienced over the past year?

3- What are some possible alternatives for improving Manzana's performance?

4- How might these specifically help to eliminate the causes of the problems facing Manazana?