Manzana Insurance: Fruitvale Branch Essay

Words: 3885
Pages: 16

Question 1. How important is turnaround time (TAT) in this business?

In summary: The turnaround time (TAT) in the insurance business is very important. This because of the following arguments:

- The most important factor to the agents in the insurance markets is the level of service provided. One of the most important aspects that determine the service level is the speed of handling the requests (TAT).

- In addition, the factors that drive profitability in the industry are related to the needs of the customers: speed. Therefore, the TAT is also of great importance for the profitability in the industry. One additional comment, by optimizing the TAT the cost of handling requests is most likely to decrease what will increase
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The daily requests that are coming into the system are calculated by adding all various jobs (RUN’s, RERUN’s, RAIN’s and RAP’s) processed in the first 6 months and dividing this outcome by 120 (E.g. 6 months x 4 weeks x 5 days). This means that the teams can process 39 requests on average per day. (350+1798+451+2081)/(6*4*5) = 4680 / 120 = 39 requests per day on average.

All further calculations can be found in the table below.

|Task |Calculation in # of requests per day |Outcome in # of requests per day |
|Calculate generated RERUN |(2081)/(6*4*5) |17.3 |
|RUN/RAP/RAIN |(350+1798+451)/(6*4*5) |21.7 |
|Total # requests per day |(350+1798+451+2081)/(6*4*5) |39 |
|Underwriting Team 1 |(162+761+196+636)/(6*4*5) |14.6 |
|Underwriting Team 2 |(100+513+125+840)/(6*4*5) |13.2 |
|Underwriting Team 3 |(88+524+130+605)/(6*4*5) |11.2 |
|Total # requests per day |(350+1798+451+2081)/(6*4*5) |39 |