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
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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
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most important aspects of the service level is speed and therefore TAT. Finally‚ a basis analysis suggests that the increase in TAT is related to the increase in percentage loss rate. What is strongly related to the decreasing profitability of Manzana. In summary: the TAT is very important in this industry because of the needs of the agents and end-customers‚ the aspects of competition‚ the factors that drive profitability and the expected relation between the percentage loss rate and the TAT.
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1. The Fruitvale Branch of Manzana Insurance is experiencing loss of business due to late renewals‚ and long lead times on new policies and quotes. These problems have created an opportunity for a competitor to take market share. Incorrect interpretation of company income for new policy versus policy renewals has placed an overemphasis on new policies that is causing loss of profitability. The company has official priorities with respect to turn around time and processing order of insurance policies
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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 complaints
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mechanical‚ photocopying‚ recording‚ or otherwise—without the permission of Harvard Business School. 1 Manzana Insurance: Fruitvale Branch (Abridged) It was a Monday morning in early September 1991. Bill Pippin had been at Manzana for only a week‚ but already he was thinking that perhaps he should have taken a different job. He gazed at a note on his desk from John Lombard‚ his boss at the Fruitvale branch: “I’m giving a speech at a conference on property insurance‚ so I’ll be out of the office until
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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
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the problems faced by Fruitvale branch of Manzana Insurance in the mid 1991 and recommendations given to them. Manzana insurance specializes in commercial insurance but the Fruitvale branch handles only property underwriting. Currently the branch is confronted with problems like high turnaround time‚ reduced profits and stiff competition from other players. Performance of the Fruitvale branch The Fruitvale branch of Manzana Insurance is highly underperforming
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Memorandum To: Bill Pippin From: ABC Consultants Date: Feb 12‚ 2009 Re: Manzana Analysis. ABC Consultants is pleased to present an analysis of the current state of operations at Manzana and the relevant recommendations to improve the operational performance. We understand that there are four types of work processes viz. RUN‚ RAP‚ RAIN and RERUNs. In these four types of processes‚ RUN is the most profitable one generating annualized premiums of $6724. Also‚ RUN’s and RAP’s are given priority
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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
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