How is the Fruitvale branch being doing?
* Manzana has three underwriting teams supporting 76 agents in three different regions
* The net worth of the policies issued has remained the same but the losses have increased in this quarter
* The Competitor Golden Gate presently offers faster TAT's with promises of making the TAT even faster
* Profitability is declining and the number of new policies seems to be stagnating, this is having a detrimental effect on the company's performance. At the same time, the industry as a whole and Golden Gate in particular seemed to be reporting moderate growth rates.
* Late renewals are at an all time high and this has increased the possibility of independent agents recommending other policy carriers to their customers.
* TAT has increased to more than 5 days from 3 days
What are the causes of these problems?
The causes of these problems are:
* The loss of business can be majorly attributed to the slow TAT and the competitors offering faster TAT's thus making agents suggest the competitors over Manzana
* Due to competition, insurance rates and commission schedules are nearly the same.
Thus the major criterion of getting more business was the service provided by the insurance company, one measure of which is the turnaround time. Fruitvale is not among the best in the industry on this criterion and thus is losing business.
* The underwriters of the company give first preference to RUNs and RAPs as they think that RERUNs and RAINs are less profitable. This is leading to a huge backlog of renewal requests which are increasing
* Agents of the company expected a renewed contract offer from Manzana on or before the expiry date of the old policy. But due to the huge backlog of renewal requests,