Manzana Insurance-Fruitvale branch Case Study A. Get the Big Picture: 1) Why have been Manzana’s profit deteriorating? Analyze by taking the following questions as lead. It is commonly believed at that RERUNs is less profitable than RUN and given less priority.Do you agree with this policy? Why? We don’t agree. Reasons are as below: 1) Working Time (Refer to Exhibit 3). RUN(mins) RERUN(Mins) DC 128 43.2 (95%SCT per request)
Premium Underwriting Working time Baseball statistics
A. Get the Big Picture: At Manzana the new policies (RUNs) are believed to be more profitable because they “commanded the highest premiums” and also because they considered that costumers would renew their policies anyway so they didn’t need to pay as much attention to the RERUNs. Nevertheless‚ we consider that these are not the most profitable policies and for instance they should not be given high priority. Table 1: Manzana Profit for 2nd quarters Looking at the profits we can see that there
Premium Arithmetic mean Profit Policy
Business Issues The profitability of Manzana Insurance Fruitvale branch was declining. There were mainly contributed by‚ Increasing backlog policies since 1989‚ and the number of RUN and RAIN appeared to be stagnating. Rise in late renewals resulted in increasing renewal loss rate. The renewals are decreasing and had a high renewals late rate 44%‚ which led to an extremely high renewal loss rate 47%‚ while Golden Gate’s is at just 15%. High turnaround time. Manzana increased TAT to 5 days‚ Goldengate
Premium Capacity utilization Arithmetic mean Baseball statistics
Summary The main problem of Manzana Fruitvale is a significant loss in profits. It originates in operating performance failures characterized by a total throughput time of 8.2 days. This situation can be improved through structural changes in the underwriting process‚ reorganization of the incentive structure and redefinition of priorities concerning renewal policies. The total turnaround time (TAT) then decreases to 0.7 days. Industry Manzana Insurance is a leading player in the Californian commercial
Premium Incentive Insurance
Manzana Insurance Case write-up Introduction This study is designed to determine why the Fruitvale branch of Manzana Insurance is performing so poorly for Property Insurance. Golden Gates‚ a competitor of Manzana‚ numbers are estimated to outperform Manzana Fruitvale branch as well. There are several problems that are leading to the poor performance at this branch. This past quarter turnaround time increased again reaching 6 days‚ where Golden Gate is sitting at 2 days. Also the system is running
Premium Standard deviation Insurance Arithmetic mean
Case question 1 Manzana specialized in commercial insurance‚ with property insurance‚ making up 65% of its revenues‚ liability insurance 20%‚ and investment income and miscellaneous specialty lines constituting the remainder. Golden Gate Casualty is one of the largest property-liability insurers in California‚ it is also the powerful competition with Manzana in the market. Below listing 3 advantages with Golden Gate: Golden Gate promise of one-day turnaround time to all agents‚ Manzana got lots of
Premium Insurance
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
Premium Capacity utilization Insurance
Overall Performance of Manzana-Fruitvale: The Fruitvale branch of Manzana Insurance is struggling right now. “Branch profitability was declining. The backlog policies had increases since 1989‚ and the number of new policies and endorsements appeared to be stagnating.” To make matters even worse their main competitor‚ Golden Gate‚ had no problem taking business away from Manzana while they were struggling. Exhibit 1 shows some of the key metrics for Manzana the past two years and for Golden Gate
Premium Mathematics Arithmetic mean Policy
Operations Management Case Analysis - 2 Manzana Insurance (Fruitvale Branch) Group 13: ANALYSIS INTRODUCTION The Fruitvale branch of Manzana Insurance is facing stiff competition and is being severely outperformed by Golden Gate casualty Insurance. On every measure of performance‚ Fruitvale branch seems to be falling apart. Following are the problems faced by Fruitvale branch: 1) Turnaround Time (TAT) is too high TAT‚ or the number of days between the
Premium Insurance Arithmetic mean Capacity utilization
Harvard Business School 9-692-015 Rev. January 30‚ 1997 Christopher Loch and David Paul Grant prepared the original version of this case (S-DS-87‚ Revised 5/90) under the direction of Professor Michael J. Harrison‚ Stanford University. It is based on an earlier case by Karlyn Carnahan. Professor Steven C. Wheelwright‚ Harvard University‚ prepared the abridged case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation
Premium Insurance