Manna Insurance Fruitvale Branch Case Solution
Fruitvale’s financial performance
Under the given scenario presented in a case, it is clearly shown that Manzana was suffering a huge market loss because it faced a lack of processing time to cover the new polices and underwrites. The impact of such overtime was directly linked with the increasing trend of renewal loss in under writes as well as increased the turnaround time to process the products and services. This also reflected a negative impact of the income statement of the company because the more time to execute the service means that all the later opportunities would be eliminated.
The statement also indicates the opportunity cost associated with the more time to cover the service and request by the agent. With all these problems faced by the Manzana Insurance in the recent year, it shows that the current year generated a net loss because all these impacts were directly proportional to it. So the memo wrote by Bill Pippin defined negative results of the company and was expected to incur in the future if immediate actions would not be placed under the given scenario.
Factors led to negative performance
After the critical assessment of the case, it is identified that there were some selected factors that contributed a loss of the company. These factors are discussed in detail and given below:
The first thing to consider when analyzing the overall performance of the company is the use of total turnaround time for each product and service that Manzana Insurance performed. While the results from the case clearly illustrate a huge value as compared to the market standard, which defines more time to cover for each policy and underwrite, this more time was directly proportional to the weak process as well as more opportunity cost to incur. So such time had directly involved in the overall loss bear by the company.
Late under renewal
It has also been analyzed that the turnaround time had an impact on the renewal process of underwriting and policies because the more time would incur late in the renewal process of the existing product and service. Which caused more losses in the company’s overall performance. So it is identified that this factor is directly proportional to the Turnaround time that a company was used.
This factor is mostly based on the level of renewal late performed by the company because according to the standard level of time to process the policies and underwrites. The company was not met the required standards and thus performed a late process to execute the results.
This act led the customers and the agents to shift towards other organization; this particular trend was subjected to a loss in the renewals because at the maturity; Manzana was not giving the results in a particular time to cover. So this loss reflected a negative impact of the income statement of the company.
Operational and financial analysis of Manzana Insurance
To assess the negative impact of the operations on the company’s entire financial performance. The company calculated various operational results that would be a reference point to judge the lack of performance and provide some proofs to change the operational activities in order to increase the overall profit margins of Manzana Insurance. The following results show the reflection of the operational activities of the company’s performance in financial terms.
Available capacity of each processing step
The following analysis shows that there were four processing units that contributed towards the implementation of the policies and underwrote. However, in order calculate hours available per day for each of the selected processing unit. The company first determine the overall hours spent per day to generate the process of underwriting and found that 7.5 hours would be required per day where all the processing units would perform in a unified way. Therefore, it shows that an underwriting team and policy makers would spend more time in a process as compared to other processing units. ……………….
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