Analysis of Sagicor Insurance Company

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AN ANALYSIS OF SAGICOR INDIVIDUAL LINE INSURANCE
CUSTOMER VALUE DELIVERY

Sagicor’s Individual Line Insurance
Customer value delivery

Student ID #’s
620015853
620021810
620018486
620021115
620019928

Dr. Lawrence Nicholson
Mr. Kamau Chionesu

Capstone Project SBCO6800

University of the West Indies
Executive Masters in Business Administration
Mona School of Business

August 24, 2011

Delivering customer value

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Table of Contents

1.Introduction4
1.2 Aims and Objectives8
1.3Problem Statement9
2.Overview of the Insurance Industry in Jamaica11
2.1 Background of Sagicor Life Jamaica (SLJ)12
3. Research Design13
3.2 Methodology13
3.3 Sampling Method13
3.4 Data Collection14
3.5 Key Deliverables14
3.6 Constraints14
4Process Analysis15
5. Value Chain Analysis19
6. Problem Cause & Effect21
6.1 Personnel21
6.2 Management/Policies21
6.3 Manpower/People21
6.4 Material/Inputs22
6.5 Method/Process22
6.6 Other/Culture22
6.7 Cause & Effect ISHIKAWA Diagram22
7.Data Presentation23
Demographic Information23
7.2 Financial Advisors25
8. Analysis and Findings of the Individual Line Division28
8.1 Key Performance Indicators28
8.2 Throughput Time28
8.3 Labour productivity28
8.4 Theoretical Minimum28
8.5 Efficiency28
8.6 Bottleneck Identification28
9. Analysis of the New Business Department30
10. Individual Line: Encashment Process Analysis32
Illustration 6: Encashment Precedence Chart34
11. Conclusions35
12. Recommendations36
12.1 Redesign of the application processing36
Implementing Changes37
12.2 Underwriting Process37
12.3 Encashment Process38
12.4 Customer Service38
13. References39
14. Appendices40

1. Introduction

Insurance companies are operating in a fast-moving global marketplace characterized by technological advancement, global communications and the ever changing needs of demanding customers. These drivers increase competition among insurance providers and require careful consideration for organizations to be successfully positioned for creating or maintaining customer value. Organizations are therefore challenged to parallel their business processes with enhancing customer value. The foundation of a customer value based theory of the firm was laid years ago by several theorists including Drucker (1973). From a quality perspective, Drucker developed a traditional emphasis on financial return where he viewed a business as an organization that “adds value and creates wealth;” where value is created for customers, and wealth is generated for owners. The concept of customer value is multi-dimensional and therefore creating, maintaining or enhancing its delivery requires a multi-pronged approach that includes sound management, benchmarking, innovative products and a motivated staff. The success of organizations in a dynamic environment requires the right organizational climate and the coordinated efforts of the various divisions for their success. It is for this reason that the consulting firm of WADAD Inc. sought to conduct a research on Sagicor Life Jamaica’s Individual Line Division with the intent of identifying opportunities for enhancing customer value and making its recommendations.

1.1 Customer Value

BusinessDictionary.com defines Customer Value as the difference between what a customer gets from a product, and what he or she has to give in order to get it. One of the earlier theorists on customer value, Peter F. Drucker (1973), theorized that management should manage for results, do the right thing right and make serving the customer the center of everything. One of his theories was quality focused with his view of a business benefitting both the owner and the customer and not just for the company to make a big bottom line. Drucker theorized that business processes should create value for customers while generating...
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