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. Officially, the company policy is to use a first-in-first-out (FIFO) system to process policy requests. However, these priority rules are not followed. In practice, new policy requests are given priority over existing policies. The employee compensation plan does not support FIFO, due to the 25% commission paid on new policies. The turnaround and scheduling time calculations are skewed to use an exceptionally high 95% of worst case Standard Completion Time (SCT) to determine the average processing time. The combination of these factors has created a situation where product priorities and scheduling inaccuracies are causing Manzana to be unable to meet company production and profitability goals.
2.
From the analysis, there is no bottleneck resource, however, Underwriting Team #1 is operating at the highest capacity. When the data in Exhibit 6 is analyzed, it is obvious that there was been a dramatic increase in the number of lost renewals beginning in 1990. This is a result of the 1990 underwriting department reorganization, specifically, the assigning of agents to specific underwriting teams. Exhibit 7 reveals the nature of the problem: individual underwriting departments can have too many policies to process if the assigned territory is has a high number of policy request, while the other underwriting teams may have excess capacity.
Underwriting is the assessment of risk that a potential customer may have, this allows the company to offer the customer a certain amount of coverage. This is something critical for
In this critical analysis I will review the failures of negotiation for a contract renewal between TexasAgs Oil Company and Cousins Corporation. The key failures identified were: planning the negotiation, identifying BATNA, role
McFarlan, F. Warren. CareGroup. Ed. Robert D. Austin. N.p.: Harvard Business School, 2005. 1-22. Print.
One of the key issues faced by McGraw is that there is a large gap between his projections for next year, and what the manager’s are promising him . His goal is to obtain a 15% increase in the operating income from his division (OM, LR and NP). The managers are projecting a decrease of 5.2% from the current year. In absolute terms there is a gap of $27 MM in the projected divisions operating income.
Aetna, Inc. was established in 1853 and offers health insurance options for purchase. The main product portfolios include health insurance products with medical, dental, pharmacy, behavioral health, group life and disability plans. This essay will analyze the company’s structure and environment and provide recommendations on strategies that the company could take to improve performance.
When good claims go bad, “ beneficiaries who aren’t covered; services that payers say aren’t reasonable and necessary; provided services that weren’t covered; duplicate bills ...
Deciding which pay form to use when compensating employees is extremely important to a company. Many things are taken into consideration: labor costs, the correlation between performance and pay, customer service, and the ability to attract and retain employees which is extremely important to FastCat’s need for innovation. We believe a single pay structure coincides with our single based plan for the organization. We want to keep things simple and understandable to all areas of the organization. This strategy will allow employees to understand how their performance and the performance of others relate to the success of the company through specific measures. It is also important that the strategies align with the objectives of FastCat. We beli...
Rousmaniere, Peter. “Facing a tough situation.” Risk & Insurance 17.7 (June 2006): 24-25. Expanded Academic ASAP. Web. 23 March 2011.
Tomax Corporation has 400 employees and wishes to develop a compensation policy to correspond to its dynamic business strategy. The company wishes to employ a high-quality workforce capable of responding to a competitive business environment. Suggest different compensation objectives to match Tomax’s business goals.
...e steps that are required to be addressed while coming to deal with vendors. The Proposed idea, looks satisfactory in meeting the outcomes. One thing that should be ensured is that they should incorporate the clauses pertaining to risk in the plan.
Lisa’s insurance broker did not make sure she had the proper coverage to reduce her liability if something were to happen to the art gallery. Lisa’s insurance broker, Homer, broke his fiduciary duty to Lisa by not ensuring she had the proper coverage she needed; given that Lisa was responsible for the safekeeping of the artwork that was on consignment. Homer should have taken into consideration that nearly all her inventory, which was on consignment, would not be insured if a fire occurred. Nonetheless, Homer reassured Lisa that she was “well covered” with her policy when she should have had a policy where she would be covered for losses to artwork on consignment as well as fires that didn’t originate on her building
The insurance industry needed a vehicle to transfer billions of dollars of catastrophe risk to an entity capable enough to manage it. The only entity able to cope with these large risk...
As a way of protecting the insured against extreme out-of-pocket costs, some policies include an out-of-pock...
One Failure example of risk management process is Coca-Cola Company. As known, Coca-Cola is the world’s number one drink manufacture, with Coke being its most important and biggest selling product. In order to beat its main rival, Pepsi, which releases Aquarium into the no-carbonated drinks and bottled water market, sales of Coke decided to launch Dasani which is Coke-Cola’s con tribulation to the bottled water market in Europe. Breaking into the European market would therefore help Coca-Cola’s sale of their bottled water rise above that of Pepsi’s as Pepsi had no