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    Characteristics of MACS; efficiency in handling insurance claims

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    Chow Company is an insurance company in Hong Kong. Chow hires 55 people to process insurance claims. The volume of claims is extremely high and all claims examiners are kept extremely busy. The number of claims in which errors are made runs about 10%, If a claim has an error, it must be corrected by the claims examiners.

    After looking at the data Judy Choy senior manager of the division, was not satisfied with the volume of claims processed. She instructed Anne Wu the manager to motivate the claims examiners to work faster. Judy believes that the claims examiners are working as fast as they possibly can. She is also concerned that, by working faster, the examiners will make more errors.

    a) How should Anne Wu handle this situation?
    b) On what performance measures is the organization relying?
    c) What performance measures should the organization use?

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    a) How should Anne Wu handle this situation?

    Anne Wu should handle this situation by clustering her employees to take upon claims which they have the most proficiency on. Since there exist many types of claims that can arise, then having employees specialize would make work move faster than having them work on claims as they come along. Alternatively, ...

    Solution Summary

    The characteristics of MACS and the efficiency in handling insurance claims are examined.