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
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1.How is the Fruitvale Branch doing? How the branch is doing according to key external performance measures-financial performance‚ turnaround times‚ late renewals‚ and renewal rates. Fruitvale encounters a significant loss of business due to late renewals‚ and long lead times on new policies and quotes. From the following perspectives‚ we can have a better view of what Fruitvale Branch’s problems are:Financial performance: Profitability is declining. It suffered a loss of $174 and $121 in 1st and
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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. Copyright © 1991 by the President and Fellows of Harvard College and by the Board of Trustees of the Leland
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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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The Case Brief: Manzana Insurance is the second largest Insurance Company in the Property Insurance space in California. The case relates to one particular branch‚ the Fruitvale branch‚ which has been losing market share to its competitor Golden Gate. This branch deals with the commercial property insurance and has three underwriter teams that cater to 3 geographic territories. On an average‚ the Fruitvale branch receives around 39 requests per day (22 requests for new insurance and 17 renewals)
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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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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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i. Measurement of SCT‚ TAT time‚ and processing times: TAT & SCT: The 95% SCT is used as a predicted completion time given with 95% confidence to the agent‚ thereby giving a realistic timeframe of turnaround for a single policy. While a useful measure for a single policy‚ the average processing time of all tasks is necessary to calculate the schedule for the week. By adding the throughput time per day of each step to calculate the TAT time‚ the manager is assuming a batching of policies which
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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
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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
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