Manzana Insurance

Case Analysis: Manzana Insurance Fruitvale Branch

Gabriel Benko, gbenko@calstatela.edu

MGMT 306

7/22/2015

1.) There are quite a few problems that the Fruitvale branch is facing. The main source of the problem is the fact that the different departments are doing the work load in a different order instead of following the “first in and first out” method. Since each department is taking a different approach the branch is receiving backlogs which are causing agents to recommend renewals elsewhere because it’s expected to receive the renewed contract on or before the expiration date. Late renewals are far too high and needs to be fixed. The turnaround time grew to six days while their main competitor, Golden Gate, is only one day. Another problem is the fact that agents are defecting to A Golden Gate. There is no doubt though that all of these issues stem from the fact that the amount of late renewals is way too high. I would like to be in Bill Pippin’s position because I feel that I can address these issues and make changes for the company in a positive manner.

2.) First, a consumer is someone who uses products while a customer is someone who buys them. With that definition in mind we can say that the customers in this scenario are anyone who wants to purchase property-liability insurance. Since Fruitvale is a smaller branch they focused entirely on property insurance. A customer would be anyone who needed property insurance. A consumer would be the agents and employees of Fruitvale. Note that the customers can also be consumers in this case based off of the definition. Agents typically suggest to the customers which insurance carrier to go along with. We know this to be the case because it was stated when Fruitvale would take too long with the renewed contracts, the agents would recommend another carrier.

3.) In exhibit 7 it shows that the number of policies decreased but the gross premium has also decreased. The gross premiums did not remain...