Manzana Insurance: Fruitvale Branch

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Case Manzana Insurance: Fruitvale Branch Manzana Insurance is one of the largest property-liability insurers in California (USA). Fruitvale is one of Manzana’s smaller branches, with three underwriting teams supporting 76 agents in three geographical territories. Fruitvale is at this moment facing deteriorating profits due to operational problems. The effect of these operational problems is (particularly in comparison with competing insurers like Golden Gate) a high Turnaround Time (TAT), a high percentage ‘Renewals late’ and a high ‘Renewal loss rate’. For managing the deteriorating profits an analysis of the operational problems Fruitvale faces is required. Questions / Answers: 1. Analyze and assess Manzana Operations (that process…show more content…
In fact the numbers suggest an overcapacity at the different departments. The data from other exhibits however show that the capacity seems to be sufficient although there are difficulties handling the flow of requests. Indication of these difficulties can be found in the following facts:  The average Turnaround Time (TAT) grows rapidly; from 4,7 days in the first quarter of 1989 to 6,2 days in the second quarter of 1991 (Exhibit 6). Exhibit 3 even shows an increase of the TAT to 8,2 days in the first week of September 1991.  The number of renewals, that isn’t processed in time, also increases; from 205 in the first quarter of 1989 to 468 in the second quarter of 1991. To analyse the increasing TAT and the apparent capacity shortage at the different resources we have studied the utilization percentages. The utilization percentage for Distribution and the Underwriting Team for Territory 1 is high. The next items must be taken into account while interpreting the data:  In the ‘Weighted average processing time per request’ (Exhibit 4) indirect activities are not taken into account, like supply of data / analysis, leave, etcetera. The effective capacity might be

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