DEUTSCHE ALLGEMEINVERSICHERUNG

EXECUTIVE SUMMARY:

One of the biggest insurance firms in the world is called Deutsche allgemeinversicherung
(DAV). The conventional business strategy of DAV was exceeding customer expectations for
service excellence to keep existing clients and draw in new ones. One of the difficulties dav
encountered was fast, error-free information and data processing and retrieval across its several
divisions and locations. As competition grew, quality improvement was given first attention.
The head of operations, Annette Kluck, started a process measurement and progress ("pmv")
project employing statistical process control ("SPC") to raise the level of customer service. It
is suggested that online technologies and a trial program be used to enhance the precision and
efficiency of the new customer policy process.

CHALLENGES:

• Customer satisfaction declines as expectations for coverage, price, customer service,

and other factors have increased as the German insurance market has become more
competitive. As a result, Deutsche Allgemeinversicherung's client satisfaction scores
have dropped.
• Inadequate online presence: Deutsche Allgemeinversicherung has needed help keeping
up with the increasingly digital insurance industry. The company needs more resources
and a more substantial online presence to compete effectively in the increasingly digital
insurance market.
• Struggle to compete: Deutsche Allgemeinversicherung has struggled to compete in the
fiercely competitive German insurance market. The business needs more resources and
competencies o successfully set itself apart from its rivals.

PROBLEM STATEMENT:

How can Deutsche Allgemeineversicherung (DAV) lower the costs and hazards of its present
insurance products while enhancing client satisfaction and retention?

1
CRITERIA:

• Cost/benefit analysis: Conduct a cost/benefit analysis to determine if the proposed

products or services are worth the investment.
• Operational efficiency: Analyze the company’s current op erational processes and
identify areas of improvement.
• Risk assessment: Assess the risks associated with the proposed new products or
services, including financial, functional, and legal risks.
• Customer feedback: Gather customer feedback to gain insights into customer
preferences and needs.
• Financial performance: Analyze the company’s financial performance and evaluate the
potential impact of the proposed new products or services on the company’s bottom
line.
• Market conditions: Consider the current economic situation, the competitive landscape,
and the state of the insurance industry.

ALTERNATIVES:

1. Use Technology extends the ability to Apply Online

Pros:

• Convenience - clients may complete the application without waiting in line or speaking
with a human, reducing the margin of error. DAV can specify specific fields on the
application to "must be filled" to move on to the next screen. Data entry is less labor-
intensive and doesn't require overtime; you can rapidly update information online;
Department processing workload is reduced-cost and upkeep to run a website
• Staffing of IT personnel
• May lose that custom face experience
• Not everyone may be computer literate
• Not everyone may own a computer

2
 2. Focus on the SPC pilot study for New Customer Policy Process before Rolling Out

Pros:

• Testing to determine whether SPC applies to all departments SPC wasn't intended for
every department, including lawyers.
• Compiling data and developing procedures to make available to other departments
• Establishing a framework and recording relevant performance metrics. Demonstrating
the necessary knowledge, competency, and skill sets. Strategically assessing the
organizational design and identifying activities to achieve the aim.

Cons:

• Long process to implement SPC

• One department’s sample data is different from another
• Departments are not structured alike and have different standards.

3. Outsource a Process Improvement Team

Pros:

• Having a team to provide the correct methodology and technique to cater specifically
to each department
• Skilled and trained people with experience
• Sets guidelines
• An experienced team will be more efficient in applying their knowledge to problem
areas

Cons:

• It could be a high cost if DAV doesn’t follow guidelines once the process improvement
team leaves
• Departments may not be supportive of an outsourced process improvement team. Lose
a bit of control of your operations

3
RECOMMENDATION:

The suggestion is a combination of Alternatives 1 and 2, with an emphasis on a pilot

study for the New Customer Policy Process and the introduction of technology to the

application process. As the market becomes more cutthroat, DAV strives to offer top -notch

customer service.

By,

Thinakaran S B,

2228058.