Manzana Insurance Case
OPERATIONS MANAGEMENT
GROUP ASSIGNMENT
MANZANA INSURANCE CASE ANALYSIS
OPERATIONS MANAGEMENT CASE ANALYSIS
Case Background
About the firm
Manzana Insurance was founded in Sebastapol, California in 1902. It originally specialized in orchard and farm insurance. In 1906, after the San Francisco Fire, it saw an opportunity and expanded into a number of areas. The main lines of business initially were Commercial property insurance only. Then Manzana dabbled into commercial liability segment which contributed to almost 50% of revenues. But after the liability crisis and its takeover the strategy adopted was a back to basic strategy whereby there was a conscious effort to reduce the revenue contribution from liabilities. This went down to 20% in 1991. During this time frame the competition from other insurance companies especially from Golden Gate, had become intense.
Insurance Industry Segmentation
Personal
Commercial
Property
Liability
Property
Manzana s area of specialization
Liability
The case deals with the performance of a branch, located at Fruitvale, which has been consistently losing business to its archrival Golden Gate in its territory. By mid-1991, Golden Gate had performed much better than Manzana s Fruitvale branch on every count and this resulted in memo being issued by the senior vicepresident at Manzana. The Fruitvale branch performed badly on various measures like total number of requests for new policies, endorsements, and renewals processed, very high turnaround time resulting in late renewals and increased renewal loss rate.
OPERATIONS MANAGEMENT CASE ANALYSIS Problem Overview
Manzana Insurance - Fruitvale 's core management problem is its under-par performance owing to long turnaround times (TAT) and piling up backlogs of request in process (RIP). Also, because of the late Renewals, many of Fruitvale´s customers are turning to its major competitor Golden Gate. There are systemic issues with the process
GROUP ASSIGNMENT
MANZANA INSURANCE CASE ANALYSIS
OPERATIONS MANAGEMENT CASE ANALYSIS
Case Background
About the firm
Manzana Insurance was founded in Sebastapol, California in 1902. It originally specialized in orchard and farm insurance. In 1906, after the San Francisco Fire, it saw an opportunity and expanded into a number of areas. The main lines of business initially were Commercial property insurance only. Then Manzana dabbled into commercial liability segment which contributed to almost 50% of revenues. But after the liability crisis and its takeover the strategy adopted was a back to basic strategy whereby there was a conscious effort to reduce the revenue contribution from liabilities. This went down to 20% in 1991. During this time frame the competition from other insurance companies especially from Golden Gate, had become intense.
Insurance Industry Segmentation
Personal
Commercial
Property
Liability
Property
Manzana s area of specialization
Liability
The case deals with the performance of a branch, located at Fruitvale, which has been consistently losing business to its archrival Golden Gate in its territory. By mid-1991, Golden Gate had performed much better than Manzana s Fruitvale branch on every count and this resulted in memo being issued by the senior vicepresident at Manzana. The Fruitvale branch performed badly on various measures like total number of requests for new policies, endorsements, and renewals processed, very high turnaround time resulting in late renewals and increased renewal loss rate.
OPERATIONS MANAGEMENT CASE ANALYSIS Problem Overview
Manzana Insurance - Fruitvale 's core management problem is its under-par performance owing to long turnaround times (TAT) and piling up backlogs of request in process (RIP). Also, because of the late Renewals, many of Fruitvale´s customers are turning to its major competitor Golden Gate. There are systemic issues with the process