Manzana Insurance Company

991 Words4 Pages
Case:
Manzana Insurance - Fruitvale Branch (Abridged)
Harvard Business School

Executive Summary
Fruitvale 's core management problem is the low performance due to an unacceptable long turnaround times (TAT). Especially because of the late Renewals many of Fruitvale´s customers are turning to its major competitor Golden Gate. The operating performance needs to be improved by eradicating the bottleneck in Underwriting. This will be achieved by restructuring and simplifying the process. Through our solution we are going to achieve a new TAT of 0,518 days (3:53 hours). Thereby we hope to recapture the lost market share and satisfy our customers. In average all daily incoming insurance requests will be processed in an extremely
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An UT will therefore underwrite two requests. After underwriting both each team member will rate one of the two requests. It is important that the DCs distribute similar requests in terms of rating time to one certain UT. Due to the fusion of step two and three 25% (time savings in writing and getting into the case) or more of rating time will be saved. In order to stay within a save margin we reduced the weighted average rating time by 25% and added this to the weighted average time of underwriting. We divided the weighting time of the first request lying on the desk while the second is being processed on both requests. In average 12 requests will be processed by the UTs every 109.6 minutes. Every 54.8 minutes (109.6/2 min) 6 requests can be processed by the policy writing department. Hence the average service rate in step two and three is the same. This would also increase productivity by decreasing queuing time.
Including all these changes our calculations lead to a TAT of 3:53 hours (see Apendix)
We will not set priorities on certain products (RUNs, RERUNs, RAPs, RAINs). We will rather implement FIFO for all products, independent of the profit generated. In order to motivate the employees to do so “Salary/Plus” can set incentives by rewarding an increase of the weighted average time needed to process a request. This is also a very fair solution with regard to the clients.
Conclusion
We will be able to renew

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