Manzana Insurance

Manzana Insurance

The Fruitvale branch is not faring well, they are behind competitor Golden Gate in new policies(375 to 326 in favor of Golden Gate), endorsements(300 to 206 in favor of Golden Gate), renewals (1,400 to 1,063 in favor of Golden Gate), turnaround time (2 days to 6 days in favor of Golden Gate), and renewal loss rate (15% to 47% in favor of Golden Gate) in the most recent quarter. The number of renewals, and endorsements at the Fruitvale branch are lower than they were for the same quarter the previous year, and the turnaround time, number of late renewals, and renewal loss rate have increased. The Fruitvale branch has performed especially poorly during the 1991.

The main cause of the problems is that the Fruitvale branch processes RERUNS last because they are seen as less profitable than new policies. When RERUNS aren’t provided by the due date, it displeases customers and causes them not to choose to renew the policy with Manzana. In a market where prices are essentially identical, customers value the service they receive and how fast their requests can be processed. Therefore, since the Fruitvale branch is falling behind in this regard, the renewal loss rate is at a record high. Additionally, if a renewed policy is late, the insurance agent is likely to suggest another agency to customers, thus adding to the low retention rate. To make matters worse, only 15% of RAPs become RUNs, so they aren’t acquiring a large number of new customers.

An increase in new policies written has been contributed to Fruitvale’s inability to process RERUNs on time. In the most recent quarter the Fruitvale branch wrote 326 new policies, which is up from 278 in the same quarter from the previous year. Since new policies are processed first, the increase in new policies written causes every other request to be pushed back. This has an especially large effect on RERUNs since it is the last request processed. The firm claims that they follow FIFO when processing requests, except for the branch orders the importance of the different type of requests. For example, new policies are processed first when they come in, even if there are several RERUNS already waiting to be processed because RUNs and RAPs take precedence over RERUNs. This means that the branch really does not follow the FIFO process at all. Using this flawed system, the Fruitvale branch has increased their backlog since 1989.

Another cause of their problems is that the distribution clerks do not receive RERUNs until the day before they were due. The idea behind this process is to use the most up to date information in the RERUNs. However, with the current FIFO policy the company has, if there is an influx of RUNs and RAPs the workers are unlikely to process the RERUNs the day they are generated, making them overdue.

Additionally, Fruitvale has lost many customers because agents were