National Casualty Insurance Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

INTRODUCTION

The national casualty insurance company is mainly the subsidiary of National Mutual Automobile Insurance Company and this parent company came into existence in the fiscal year 1924. The main purpose of the establishment of National Mutual was to perform an underwriting of automobile insurance. There was quite an improvement in the performance of National Mutual Companies as well.

Moreover, in the fiscal year 1930 the National Casualty came into existence which was developed in order to perform an underwriting of insurance that is related to the boat owners and as well as the homeowners. They are quite well known for the level of work they have performed in the last few years. As a result, they became the largest writers of the automobile insurance across the globe.

In addition to this, the rest of the company who are operating in the same sector are also growing at a faster rate and they may pose a threat to the existence of National Mutual Company and its subsidiary named as National Casualty insurance Co. Besides, the reason behind the success of the company is that, it has placed its focus mainly on low cost, but providing a high quality service in order to keep the customers satisfied.

This company also had a very vast sales network across the United States and this network is having a responsibility with regards to the generation of growth in the total policies. On the other hand, each of the divisions within the company will be charged with as much as low costs in order to avoid the need to spend expenditure and keep its focus mainly on the high quality of services.

Because nowadays the insurance companies try to provide value for money to its customers because if the customers do not get what they want, then it may result in reduced customer base as well as the loss of income that is based upon insurance. Moreover, the National Mutual Company was considered to be the leader in terms of the policy with regards to the operating costs, respectively.

Hence, it was this policy which contributed to the improved performance of the company even in the bad times when there was a rise in the level inflation and the rest of the rivals operating in the same sector were facing difficulties in order to continue operating in the insurance business.

PROBLEM STATEMENT

As per the information available in the case it can be seen that overall the performance of the National Mutual group was outstanding in the previous years and there was a rapid increase in the rest of the insurance companies. However, the problem that was faced by the company was in terms of lower operating profit and this took place due to the period of rapid inflation. During this phase all of the companies who were operating in the insurance industry were experiencing the same problem.

CASE ANLAYSIS

As per the exhibits the graph that is based upon the salesmen forecast and the actual number of new policies can be taken into consideration. Moreover, there are five quarters that have been taken into account and these are related to five years. Firstly, the actual number of policies is dealt with and by taking the average of these policies over a period of five years the average of 51 has been obtained.

Moreover, a trend can be seen and it is evident by a difference between the average percentage of 9.40% that relates to the new number of policies to the average percentage of 0.2% which is based upon the salesmen forecast. Despite this, the multiple R as per the regression statistics is almost 99.55% and the Adjusted R square on the other hand is also almost 99%.

Besides, the level of significance is 0% and the coefficient percentage is 89% and it is also worth mentioning that higher the Adjusted R square is the better it is. It can be seen that the trend based upon the actual number of new policies is reflected an increasing trend throughout the these 5 quarters. On the other hand, the salesmen forecast is also showing an increasing trend.National Casualty Insurance Case Solution

Hence, this means that the National casualty insurance company is mainly focusing over the issuance of the actual number of policies because this will result in the increased income if the boat owners and home owners seem to be more interested in getting an insurance policy. In addition, the increasing trend in the salesmen forecast means that if there is an increasing salesmen force, then they may be able to find as many clients as they possibly can......................

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