Manzana Insurance Case

2311 WordsJan 28, 201310 Pages
Manzana Insurance Case write-up Introduction This study is designed to determine why the Fruitvale branch of Manzana Insurance is performing so poorly for Property Insurance. Golden Gates, a competitor of Manzana, numbers are estimated to outperform Manzana Fruitvale branch as well. There are several problems that are leading to the poor performance at this branch. This past quarter turnaround time increased again reaching 6 days, where Golden Gate is sitting at 2 days. Also the system is running very close to efficiency, which can cause a problem down the road with changes we recommend. A big problem with what is going on has to deal with the RUNs and RAINs being of higher priority than the RERUNs for the senior underwriters. The…show more content…
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. Appendix 3 shows the revenues and profits, comparing the company’s FIFO system and general FIFO system. The current system releases the RERUNs the day before the expiration date, this leads to renewal losses due to quotes given past the expiration date. Instead of releasing the RERUNs the day before the expiration date they should be released

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