Operations Management – Case 1
Manzana Insurance
Operations Management
Case 1
Submitted to
Prof. T. S. Nagabhushana
By
Team 1
Amit Kumar Gupta (0211079)
Harpreet Bindra (0211087)
Himanshu Mitra (0211096)
Pradyuman Kapoor (0211113)
Rohit Jog (0211124)
Executive Summary
Fruitvale branch of Manzana, which handles only property underwriting, has been performing very badly for quite some time with very high turnaround time resulting in late renewals and increased renewal loss rate. This is further worsened by increased competition from Golden Gate, a new player in insurance industry.
There are a couple of problems in the fruitvale including ineffective incentive system, incorrect prioritizing of requests, increase in shift to newer policies, bottlenecks in operation, pending work not considered on a territory basis and increased turn around time etc. These problems have resulted in loss of almost half of renewal business for Manzana-Fruitvale.
Some of the recommendations by which the Fruitvale can be pulled up are pooling together of underwriting teams and catering to any requests received from any of the agents of the branch. Also RERUNS should not be discriminated against because they are actually more profitable both in terms of value and the time they take to be processed. Fruitvale has to streamline its processes and will have to compete on the basis of services in this highly competitive scenario where insurance rates and commission schedules are nearly identical among competitors. Increase in commission of agents for RERUNS policies can also be looked into.
Manzana Insurance
We at Manzana Insurance deal in commercial insurance with branches at California, Oregon, and Washington. This case refers to one of our branches at Fruitvale, which has consistently been loosing business to Golden Gate, a new player in the Insurance industry.