Mapping and Analysis" Regional Education Assistance Program Workshop)

Mapping and Analysis"
Regional Education Assistance Program Workshop)
Prince Insurance Company is reviewing complaints from customers that the processing of insurance claims for glass damage in automobile accidents is taking an excessive amount of time. Customers complain of calls not being returned, delayed processing of insurance checks, talking to multiple people in the claims process and general confusion. It is taking customers up to one month to receive checks for damage claims. The current process can be summarized as follows:
(1) Customer calls local agent to report a claim
(2) Local agent provides instructions to customer to request a repair quote from a vendor.
(3) The local vendor receives the request and provides the quote
(4) Customer receives the quote and files the claim with the quote
(5) Local agent receives the claim and forwards it to claims processor
(6) Claims processor logs in the claim
(7) Claims processor waits for approval from supervisor and division manager
(8) Claims processor receives approval
(9) Claims processor cuts check to customer
Required:
(a) Discuss which of the above activities would be viewed as value-added in the eyes of Prince Insurance's Customers. Give reasons for your Anss.
(b) What non-value added activities and suggestions could be made at Prince Insurance to improve the claims processing process? (Source: Institute of Management Accountants, "Process