USE OPERATIONAL MANAGER IN THE UNDERWRITING DEPARTMENT The MGMT Insurance Ltd. accepts payments on various insurance policies from employees of businesses across the island. These businesses deduct payments from employees’ salaries and pay the insurance company a lump sum each month. This total amount deducted is shown on each employee’s payslip. Deductions are due at the end of each month and each participating business submits one payment for its employees to the insurance company via online payments through the bank. However, if payments were received after 11:00 a.m., the bank does not process them until the next business day. At the beginning of each month an administrative assistant at MGMT Insurance Ltd. downloads the deductions for each company and allocates payments to the various policies. These payments include the client’s unique number along with his/her relevant policy numbers and amounts due. However, recently there has been some complaints that payments for some policies were not being allocated
USE OPERATIONAL MANAGER IN THE UNDERWRITING DEPARTMENT
The MGMT Insurance Ltd. accepts payments on various insurance policies from
employees of businesses across the island. These businesses deduct payments from
employees’ salaries and pay the insurance company a lump sum each month. This total
amount deducted is shown on each employee’s payslip.
Deductions are due at the end of each month and each participating business submits one
payment for its employees to the insurance company via online payments through the
bank. However, if payments were received after 11:00 a.m., the bank does not process
them until the next business day. At the beginning of each month an administrative
assistant at MGMT Insurance Ltd. downloads the deductions for each company and
allocates payments to the various policies. These payments include the client’s unique
number along with his/her relevant policy numbers and amounts due.
However, recently there has been some complaints that payments for some policies were
not being allocated correctly. Additionally, assume that one client experienced a problem
with insufficient deductions to cover his/her monthly premiums.
As a new manager with the company, you wish to check the systems and processes to
ensure that they are up-to-date and report your findings and possible recommendations at
the upcoming meeting.
NOTES
1. You have been placed in a group of 5 or 6 group-mates. You are required to share
with and critique information in the group.
2. This is an exercise where you get to experience and demonstrate several concepts in
gathering, analyzing and using information for management reporting.
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3. You are now a manager in one of the departments of the company. Each of you will
select:
ONE Management Level that you will represent (operational,
management/tactical or strategic). More than one person will have the same
level.
ONE department from the following list (Claims, Accounting, Human
Resources, Information Technology, Customer Service, Underwriting,
Marketing). A department can only be represented ONCE in the group.
Once you have chosen a persona, all contributions MUST be delivered from the
perspective of that persona.
REQUIRED
Management Reporting
You need to analyse the above business processes and discuss what could possibly cause
the troubles that the company is currently experiencing.
You are attending a number of routine meetings that are conducted online. The
meetings are organised in five partss to discuss a different part of the requirements.
Part 1 to Part 4 (a) are to be addressed by each manager, while Part 4(b) and Part 5,
must be submitted as a group.
Part 1: Introduce yourself by identifying your Management level and your
functional area.
For your first discussion post, state your management level and department you will
represent. Also explain TWO functions of your job as they relate to the business. No two
students should choose the same department.
For example: Operational Manager, investigating Information Technology
issues affecting processing of premiums. Two (2) of my job functions include
but are not limited to …
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Part 2: Discuss the allocation issue
From the perspective of your department and management level, discuss the problem of
errors in the allocation of deductions to policy premiums.
a. Suggest ONE advantage of having an insurance policy and ONE contributing
factor to errors in allocation of deductions
b. Identify information from TWO other departments that could assist in your
investigation. Please specify the type of report you think will be helpful and why.
Part 3: Discuss your issue
From the perspective of your department and management level, discuss the impact that
your issue could have on the department and the company as a whole.
a. Suggest ONE reason why the deduction could have been too small
b. Critique TWO suggestions made by group mates from other departments.
Part 4: Create the process diagram
a. Assuming that a client increases his/her insurance coverage, design and draw a
“Policy Change Request” process diagram that will ensure the correct deductions
are made the month following the increase. The diagram should show the bands,
process flows, decisions and cross functional interactions required.
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