The Important Factors Regarding the Turnaround Time (tat)

Importance TAT

The important factors regarding the turnaround time (TAT) are represented in the table below.

Factors customers Factors Agents

TAT TAT

Endorsements Large quantities of sales

Price commissions

Price

The profitability of the Manzana depends on the quantity of sale of policies and endorsements. Both of these appeared to be stagnating. This resulted in a profitability decline. The new policies on commercial insurance with property insurance are the most profitable.

There is great competition between Manzana and Golden Gate. Both companies are competing on price as well as turnaround time, currently Manzana is losing on both factors. In addition, both companies are competing on renewal loss rates.

There is no direct correlation between the connection of TAT and the % loss rate. Namely, if the TAT increases the total number lost does not increase.

Example; comparing the 2nd and 3rd quarter the number of TAT decreases from 5.7 to 5.3. However, the number of renewals lost increases from 205 towards 232. Seeing the overall picture, one can state that when TAT increase, the number of loss increases at the same time.

Manzana Operations Analysis

Operation systems of Manzana

RUN

RAP

RAIN

RERUN

Above are the different processing times visualized per department, exhibit 4 is used to calculate the necessary time for each process.

To calculate the throughput efficiency, the time required on the resources and the total waiting time will be used.

The time required for resources for a RUN are as follows:

- 68.5 minutes used by the distribution clerks;

- 43.6 minutes used by the underwriting team;

- 75.5 minutes used for rating;

- 71 minutes used for policy writing.

Total time required on the various resources is 258.6 minutes.

The average of TAT is 6.2 days, which equals 6.2 x 7.5 = 46.5 hours and 46.5 x 60 = 2790 minutes. TAT is