...Manzana Insurance: Fruitvale Branch (Abridged) Group No. 7 Agenda Introduction Company Background Organizational structure Operational Flow Financial Health Current Utilization Capacity RUNs v/s RERUNs Profitability Factors of the Industry Recommendations Introduction Manzana’s Fruitvale branch is suffering from declining profitability. Falling renewal rate and rising turnaround time are the main issues. Other issues are incorrect prioritization of requests and the uneven distribution of workload in 3 underwriting teams. Turnaround time (TAT) much greater than competitor’s. Company Background Founded in Sebastopol, California, in 1902. Originally specialized in orchard and farm insurance. Post 1906,expanded by buying several insurers in northern California. Anticipating boom in home ownership in southern California, bought Casualty and Escrow Company. By 1953, became California’s 2nd largest home and property insurer. In 1970s,growth starts to falter due to high interest rates and intense competition from Golden Gate. In 1989, acquired by Banque du Soleil and new management installed. Organizational Structure Operations Flow Underwriting Team 1 1 Underwriter 1 Technical Assistant Originating Agent Distribution 4 Clerks Underwriting Team 2 1 Underwriter 1 Technical Assistant Rating 8 Raters Policy Wrinting 5 Writers Underwriting Team 3 1 Underwriter 1 Technical Assistant Parameters /...
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...Travelers Insurance understands market and to get leading edge over competitors, they have implemented their distributed solution in pieces. They have a strong development team that is expertise in technologies like Object orientation, distributed databases and client server architectures. Adaption of using these Technologies helped them to improve overall worker’s compensation workstation that includes; a) Shorten time between date of injury and date of claim resolution and eliminate over-payments. b) Reduce unallocated expenses by automating filing of state forms and form letters. c) Establish a strong competitive position through fully-automated telephone reporting capabilities and medical bill review. d) Establish the best customer service in the business. e) Maintain consistent, quality level of execution. f) Improve financial controls. g) And provide information to customers that demonstrates the value of Travelers' Loss Payout education Services. Worker’s compensation from the Commercial Lines Department has the largest share of market by insuring 50% of the fortune 500. Management always believed that worker’s compensation market requires additional innovative applications of information technology to improve customer service. In house Information Technology Department...
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...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 very close to efficiency, which can cause a problem down the road with changes we recommend. A big problem with what is going on has to deal with the RUNs and RAINs being of higher priority than the RERUNs for the senior underwriters. The senior underwriters are simply accepting the RUNs and RAINs first because those are more profitable for them, but this is hurting the company as our renewal loss rate hit an all-time high at 47%. Something must be done about these problems if we are going to compete with Golden Gate in this territory and below are these problems in more detail along with recommendations on how we feel these problems can be resolved. Findings TAT The calculation of TAT was made by multiplying the number of each type of request at each desk by a standard completion time (SCT). The 95% SCT is the time during which 95% of the requests should be taken care of. The company assumes that the variability of the processing time has the normal distribution, which has the characteristic that with a mean of...
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...Assignment question: 1. What is Progressive’s business? a. Insurance Company b. Personal automobile insurance c. Property-casualty insurance d. Primary liability and physical damage insurance for automobiles and trucks owned by business primarily e. Professional liability insurance to community banks, directors, and officers f. Pet Injury coverage g. Usage-based insurance h. Insurance-related service 2. What is critical to the success of the business? a. High customer satisfaction, “Immediate response vehicle” b. Enough communications gear-laptops, printers, and cell phones c. Lower labor costs d. Mobile adjusters e. Wireless laptop (access to mainframe computer) f. Fax machines as printers to get hard copies g. Agents talk to clients often h. Auto shop i. Dispatchers monitor agents’ locations j. Digital cameras k. Collect information effectively l. Ink-jet printer to get copies of estimates, claims, and checks m. Effective and creative advertisement n. Snapshot o. New products and hardware p. Be able to offer discount 3. How does Progressive’s use of hardware contribute to these success factors Critical Success Factor | Type of Hardware | Contributions | * High customer satisfaction * Lower cost | IRV | * Pay as quick as it can * Improve customer retention * Increase revenue | * Agents talk to clients often...
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...Progr Progressive Insurance[1] If you‘ve ever been in a car accident, you know how it feels to wait for your claim payment to arrive. Insurance companies love to hold the money as long as possible to keep every penny of interest. Progressive Insurance is the notable exception to the industry rule: It tries to pay as quickly as it can – by getting claims adjusters out of the office and onto the street where they can interact with clients. The logic behind such a radical notion? Happier customers and more productive claims reps will more than make up for the lost interest revenue. At Progressive, that radical notion is based on IRV, which stands for “immediate response vehicle,” a fleet of SUVs loaded with enough communications gear – laptops, printers, and cell phones – to allow adjusters to settle claims right at the scene of the accident. That’s a big improvement over the scenario that still pervades the industry: Wait a week or two to see the car and make hand written notes, snap photos, drive back to the office, type it all into the mainframe computer, and issue a request for a check. Ten years ago, the IRV project involved just 10 adjusters in Florida. Today more than 11,000 mobile claims reps share a fleet of 2,600 IRVs. Not only did the program help improve customer retention by 20% last year; it has helped Progressive shave labor costs. Progressive’s mobile adjusters can handle nearly twice the workload they could a decade ago. IRVs have also helped revenues...
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...Business and Governance Entrepreneurship Department Progressive Insurance: A Case Study Submitted to: Mr. Rey Navacilla Submitted by: John Paul Dela Vega Jose Antonio Kintanar Clarence Mitchell Sy Dayle Lois Tulang John Way Keith Medina Table of Contents I. Introduction…………………………………………………..…… II. Statement of the Problem…………………………………..…... III. Objectives of the Case Study………………………………..…. IV. Methodologies and Approaches…………………………….… V. Analysis of the Case a. Qualitative Tool: Fishbone Diagram………….…. b. Quantitative Tool: Decision Tree Analysis……. VI. Alternative Courses of Action (ACAs) c. Alternative Course 1……………………………..… d. Alternative Course 2……………………………….. e. Alternative Course 3……………………………..… VII. Significant Findings…………………………………………….. f. Positive Findings…………………………………… g. Negative Findings………………………………….. VIII. Recommendations…………………………………………….... IX. Conclusions……………………………………………………… I. Introduction Progressive Insurance, an automobile insurer company, which is based in Mayfield Village, Ohio. On the year of 1991 Progressive Insurance had approximately $1.3 Billion in their sales. When the year of 2006 came that $1.3 Billion in sales suddenly became $14.5 Billion. What did they do to make this figures increase so high? Nothing. For 15 years Progressive insurance just did little advertising, and some of its campaign was not very...
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...Increasing health plan premium costs are a growing burden for the employers who choose to provide health insurance coverage to employees. For small business owners operating on limited budgets, these increases are even more significant. The passage of the Affordable Care Act (ACA) creates additional responsibilities for employers regarding the minimum requirements and pricing of insurance plans for employees. Employers make difficult decisions to determine how to continue to provide health insurance at a fair and reasonable price, without harming the small business. The case study by Spencer (2014) examines the options of small business owners, John and Liza, faced with a 25% increase in health insurance rates. Once it is determined that the increase is due to the age and health status of several employees, the owner must decide whether to penalize certain employees with increased contributions, or have all workers absorb the added costs equally. In addition, there is concern that hiring a potential new employee, Robert, will increase insurance rates even further due to the pre-existing health condition of his spouse. It is challenging to select an option that has a fair and balanced impact on the company and its employees. While financially it is easiest for the company to have each employee absorb the cost of the premium increase, this is not a fair option if premium increases for all are due to the lifestyle factors of a small representation. There is an increased risk of...
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...RAINYDAY INSURANCE COMPANY A CASE STUDY Based in South Florida, Rainyday Insurance Adjusters is a medium-sized company with 135 employees and seven managers. They process the claims of insurance holders who have experienced various misfortunes (eg: Hurricanes, floods etc). Their primary job is to determine the amount to be paid out and process the paperwork for some of the smaller insurance agencies in the area so that the final payment can be issued. Although the company is just eight years old, it has done quite well and has seen a large increase in business. It has a reputation for quality work and quick turnaround for claims. Because customers are often eager to move on after the misfortune strikes, Rainyday has built a loyal following by the insurance agencies that depend on it. Delayed claims often cost these companies’ time and money when they have to interact with continuous customer complaints. To accommodate the increase in customers, six months ago, Rainyday expanded its office in the current building and upgraded all its equipment to make the company more efficient and to allow the workers to process the claims more quickly. In particular, the computers were upgraded to facilitate speedier turn-around and higher capacity from claims processors. The new computers represent a large investment the company cannot afford to underutilize. Since installation of the computers, Rainyday has experienced a number of problems with voluntary turnover among claims processors as...
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...AllState Insurance is an organization that provides support to us due to having a partnership that offers AllState customers a discount to purchase our warranty. From my experience, when value is built on an item or service, whatever the amount of discount is, consumers tend to be pleased. This partnership thus far has been very beneficial for our organization. The support of AllState has provided us with new sales opportunities and customers that may not have been as interested in purchasing a home warranty has it not been for the partnership with their home insurance company. One of our biggest competitors is Choice Home Warranty as we have gotten numerous of calls from their current or potential customers who question the price difference...
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...Marine Agency Offers Important Insurance Coverage that can Help Save Your Business and Peace of Mind. Review their Offerings Today! No matter what kind of insurance you require, Marine Agency is the only place you need. They offer many types of insurance coverage to help save you from unexpected expenses. It's important to have the coverage you need. In general, you never know what the future can hold so you must be prepared. You don't want to spend your life worrying. Make sure you have the coverage you need and you can spend your time enjoying life instead! Marine Agency offers the following types of insurance and benefits: 1. Personal Insurance covers the following: - Automobile Insurance to make sure you protect yourself as you travel. - Homeowners...
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...Island Life Insurance Mission Statement What do we do? Provide Life Insurance How do we do it? ?? Whom do we do it for? What value are we bringing? Core Problem * Selling Concept * To achieve 5% of market in 20th year, currently only 3% has been achieved. The other 2% must be achieved in the next 2 years Strengths * Reputation * Financial Stability [Island Life Insurance and Island Life General and Casualties Weakness * No marketing department, not enough promotion (insurance needs a lot of insurance since it is not a sought out product/good by most people. A new product cost $100,000 Opportunities * Offer current policies holders a package update to keep them from surrendering their policies or lapsing. * Female Market * Current economy has improved and life insurance is selling again Threats * 25 long term life insurance companies / competition / larger and more established companies Alternatives * Promotion Use a marketing strategy that would draw customers to their insurance company. Since the idea is to get the word out then advertising can be done via websites, billboards, and newspapers. Also, by referrals Pros This can be very effective for unsought goods such as insurance. This strategy lets prospective customers know what you are selling, which can capture their attention and query further either by calling in or going to one of the locations. Cons expensive...
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...There are many steps that Lewis should take to verify Sylvia Baker’s insurance. These steps should be executed in a timely fashion and as accurately as possible. Lewis needs to gather Baker’s information. A new patient registration form should be filed out Ms. Baker. Lewis has to make duplicates of Ms. Baker’s insurance card information, front and bank. Information claims must be prepared accordingly and submitted. Lewis would also need to verify coverage to clarify which services Ms. Baker’s insurance does cover. All payments should be posted and and Lewis should do a follow up on any claims unpaid (Beaman, Pg.350).2. List some reasons the claim for Mark’s care could have been rejected.-There are many reasons why Marks’s care has been rejected....
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...Please allow this correspondence to provide you with our initial coverage analysis concerning this claim. The Progressive Casualty Insurance Company (“Progressive”) has requested our legal analysis, and has specifically asked whether it has a duty to defend Tristate Trucking, LLC (“Tristate” or the “insured”) in litigation filed in the Superior Court of New Jersey Law Division Monmouth County, No. MON-L-3550-16 (the “lawsuit”). Additionally, Progressive has inquired as to whether it will have a duty to indemnify Tristate, Mylesa Walton, Michael Peavy, or Nazir Peavy (collectively the “Plaintiffs”) in the event that the Plaintiffs obtain a final judgment with respect to the “lawsuit. Progressive’s potential obligations arise out of the insured’s...
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...Case 1: Capital Mortgage Insurance Company Overview This case is set in the late 1970’s and describes an acquisition attempt by Capital Mortgage Insurance of Corporate Transfer Services. CMI is a company that sells mortgage insurance to mortgage lenders and banks but executives at CMI want to grow into the real estate relocation industry. Corporate Transfer Services assists employees who have been transferred to a new city as they try to find a new home. Capital Mortgage Insurance Corporations goal is to acquire Corporate Transfer Services at the lowest cost. The president and vice president of CMI met with the owners of CTS many times. If CMI acquires CTS, it will provide them with an easy way into the relocation industry and a high potential for profit. This makes the acquisition appealing to CMI, regardless of the fact that financially, CTS has been struggling to break even. Corporate Transfer Services wants to be acquired, but is worried about their ownership levels after the acquisition. Analysis Capital Mortgage Insurance Company’s main interest is to expand their financial services capabilities and build a strong network that can rival Merrill Lynch. Growing at a 10-15% annual rate, the corporate relocation business was a very appealing market. CMI has to protect their close relationship with MetroNet, with which Elliott Burr sat on the board. MetroNet proposed and approved the acquisition attempt of CTI. Preservation of good relationships with the CTS...
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...The Manzana Case Manzana Insurance- Fruitvale Branch case study Executive Summary The Fruitvale Branch of Manzana is facing its bitter reality of declining profitability and potential loss of market shares to its main competitor-Golden Gates due to its rising renewal loss rate and expanding turnaround time. In our analysis, we dig into several issues that were possible causes for the problem and tend to provide readers with feasible solutions that may resolve the issues on hand. Examples of such issues as we have identified in the case include, but not limited to, various departments’ deviation from FIFO system, potential capacity and staffing problems, uneven workload among three underwriting teams, outdated SCT for computing TAT, and inaccurate computation process for TAT. In order to lower the number of late renewals and reduce turnaround time, our recommendations include, but not limited to, the following: 1) Making it mandatory for all departments to comply with the FIFO system and implementing monitoring plans for overseeing the entire underwriting process to ensure FIFO is strictly implemented; 2) Revising the incentive scheme for Fruitvale Branch employees to further assist with the successful implementation of FIFO system; 3) Expanding the number of days RERUNs are released to DCs prior to the due dates to ensure that there is sufficient time for relevant departments to complete the requests on or before due dates; 4)Revising and updating the SCT used for...
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