are removed from Rating and Policy writing department and an extra Underwriting team isadded to the base case the turnaround time gets reduced from 6 days to about 1.4 days.
CONCLUSION & RECOMMENDATIONS :
To decrease the Turn Around Time (TAT ~ 6 days) and to decrease the renewal loss rate (~47%), we makethe following recommendations to improve the present system.1.The existing priority rule in which the policy is processed in the system should be changed todecrease the total turnaround time (TAT) and reduce the Renewal loss rate. We have decided touse the following priority rule RUN – 1, RERUN – 1, RAIN – 2, RAP – 3 which has decreasedthe turnaround time to 0.90 days. Various other combinations of priority rule were simulated andit was found that the best possible priority rule was the above said.2.The work force distribution in the system should be balanced at different process to improve theefficiency of operations at each process. We have decided to remove one manpower from Policywriting process and one from Rating, train them in Underwriting process and dedicate them as anew Underwriting team along with exisiting team in territory 3 to eliminate the backlog in the process.3.The renewal loss rate was a direct consequence of long TAT. The decrease in TAT will result indrastic reduction of renewal loss rate, since all the proposals are processed within a day and final policy/quote was sent to the agent.4.The renewals lost(942) presented an oppurtunity of generating revenue worth $ 5,845(inthousands of dollars), of which the agents commission amounted to $ 409(in thousands of dollars),which means the company would have posted a profit of $5435(in thousands of dollars).