INSURANCE
The Business Problem An insurance
company wanted to enter the Top 100 of Fortune 500 list. Among
many things, revenues also need to be increased by another 20%.
The CEO decided this to be a top goal and wanted the best resources
to be put to it. He called the Six Sigma champion and told him
to increase the revenues by 20% within a year's time using the
Six Sigma techniques.
The Benefit Analysis The Six
Sigma champion created a team of 2 Black Belts and 2 Green Belts
to achieve this Herculean task. The champion also estimated
that when the company enters the Top 100 of the Fortune 500
list, the brand image value will increase by atleast 35%.
Problem Identification The
results of the analysis of the Six Sigma team was very expected
as in the major contributor to increasing revenues for the company
was to increase the number and value of Insurance policies executed.
The Six Sigma team had to find out what factors impact the number
and value of policies.
Root Cause Analysis The Six Sigma team got down to collecting
data for the problem. To better understand the process they
also started making calls themselves. Upon extensive data
collection and analysis it was found that the increasing
the number of policies does not impact the revenue to that
extent since the cost to maintain an account is same irrespective
of the value of policy. Therefore, the team decided to focus
on the policy value increase. Based on the data collected
and the statistical tests performed, they came to the conclusion
that the factors that impacted the policy value are annual
income of the policy holder, Agent Experience, Type of Family
and Number of Visits made by the agent.
Solution A Design Of Experiments (DOE) was
conducted to find out the optimal values for each of the
important factors and if there existed any impact if the
factors were considered together. These suggestions made
by DOE were implemented for solution.
Result Three months after
the solution was implemented, the results started showing. The
next six months policy sale increased by 30% by value as compared
to the previous months.
