Improve Processes and Optimize Staff Requirements In Response to Projected Volume
Foresters is a member-based insurance organization with Contracting and Compensation areas that are key to driving growth and maintaining a quick application turnaround.
As the Contracting process must be completed before producers can start generating applications for Foresters, licensing new Producers and then compensating them quickly as they generate applications are critical processes in the Foresters organization.
Growing volumes of both new licensing requests and insurance applications place a strain on the processes responsible for handling these requests. New electronic systems were implemented to help alleviate the backlog but there was still a need to identify bottleneck processes and assess the impact of future volumes.
It was expected that the staffing levels in the compensation area would need to increase significantly if the number of producer contracts per month processed increased. In order to determine the staffing requirements under contract and compensation volume increases, Visual8 developed an Insurance Contracting and Compensation Process Simulation model.
Visual8 worked with Foresters to develop a simulation model of their Contracting and Compensation processes to answer the following questions:
- Where do “bottlenecks” arise in the current process with projected volume increases?
- What staffing levels are required by department to achieve stated response target times?
- What difference will equipment purchases for key processes make on overall throughput volumes?
This simulation was designed so that simple input sheets would allow end-users to modify key parameters, and facilitate “what-if” analysis. Some examples of these input spreadsheets include:
- A detailed staffing sheet
- A process parameter timings sheet
- Contract routing specifications
In addition, reporting spreadsheets were generated, allowing Foresters to capture and identify the impact of modified input parameters on the process capability statistics, including staffing utilization, and contract throughput.
The Contracting and Compensation Process Simulation tool added a new dimension of analysis to the Foresters repertoire. It identified the bottlenecks experienced by Foresters under contracting and compensation volume changes against staff availability. This proved valuable in justifying additional staffing requirements.
“What-if” analysis, through a user-friendly data interface, allowed the project team to experiment with a variety of staffing strategies and process improvements. The model structure was also designed to easily accommodate future changes within the Department such as new application channels.