Manzana Insurance
Operations Management
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Case Study
Manzana Insurance
[pic]
Presented to:
Prof B. Mahadevan
Submitted By
Group 12 (Section B)
Peeyush Razdan (0811115)
Shalekh Banka (0811124)
Shalem Anand Tirkey (0811125)
Shreshth Sharma (0811128)
Sumeet Mittal (0811131)
Manzana Insurance
As per the case facts, Manzana Insurance’s Fruitvale branch is the least performing branch and the senior VP seeks a report on the same. Their competitor Golden Gate (backed by its corporate parent generated a price war to gain market) is performing much better in terms of most metrics of Insurance business.
1) Problems faced by Manzana Insurance (Fruitvale branch)
a) High Turn Around Time (TAT)
Agents in the insurance sector are mediators who act as an interface between the client and the insurer. Hence, the quality of service, measured by average TAT, to the agents (who are common to the competitors) is of primary importance.TAT for Fruitvale has deteriorated to 6 days (1991) from 5 days (1990), while Golden Gate’s offer of 1 day TAT is luring agents away from Manzana. The number of late renewals is also increasing and quite high compared to Golden Gate.
b) Geographic/Territorial Allocation to Underwriting Teams Leads to an Uneven Task Distribution
We observe that the geographic allocation of agents to the underwriting teams is not optimal. This method has an inherent problem; there can be a surge in requests from a geography which might overload that particular team while the other teams might be idle due to lack of requests from their geography. Hence, their pooling should be rather than using the geographic allocation.
c) Primary focus on RUNs rather than RERUNs and Increasing late Renewals
Currently, Fruitvale is focusing on RUNs for getting new customers and compromising the service towards the RERUN requests for the existing customers. Loss of focus on
____________________________________________________________
_________________________
Case Study
Manzana Insurance
[pic]
Presented to:
Prof B. Mahadevan
Submitted By
Group 12 (Section B)
Peeyush Razdan (0811115)
Shalekh Banka (0811124)
Shalem Anand Tirkey (0811125)
Shreshth Sharma (0811128)
Sumeet Mittal (0811131)
Manzana Insurance
As per the case facts, Manzana Insurance’s Fruitvale branch is the least performing branch and the senior VP seeks a report on the same. Their competitor Golden Gate (backed by its corporate parent generated a price war to gain market) is performing much better in terms of most metrics of Insurance business.
1) Problems faced by Manzana Insurance (Fruitvale branch)
a) High Turn Around Time (TAT)
Agents in the insurance sector are mediators who act as an interface between the client and the insurer. Hence, the quality of service, measured by average TAT, to the agents (who are common to the competitors) is of primary importance.TAT for Fruitvale has deteriorated to 6 days (1991) from 5 days (1990), while Golden Gate’s offer of 1 day TAT is luring agents away from Manzana. The number of late renewals is also increasing and quite high compared to Golden Gate.
b) Geographic/Territorial Allocation to Underwriting Teams Leads to an Uneven Task Distribution
We observe that the geographic allocation of agents to the underwriting teams is not optimal. This method has an inherent problem; there can be a surge in requests from a geography which might overload that particular team while the other teams might be idle due to lack of requests from their geography. Hence, their pooling should be rather than using the geographic allocation.
c) Primary focus on RUNs rather than RERUNs and Increasing late Renewals
Currently, Fruitvale is focusing on RUNs for getting new customers and compromising the service towards the RERUN requests for the existing customers. Loss of focus on