From the case study "Upper Canada Insurance (Ivey Publishing)", ...Using Process 6.6 Control Schedule (PMBOK 6th edition)....(A). Explain how you would improve the scenario depicted in this case study using this process. (B) Specifically which tool or technique would you implement? Be specific, and properly identify the tool or technique. (C) Explain why you would choose to use this tool or technique.

UPPER CANADA INSURANCE David Wood wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author might have disguised certain names and other identifying information to je taught by D'Arcy Mckittrick from Sep 09, 2015 to D protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G ON1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright @ 2010, Richard Ivey School of Business Foundation Version: 2014-06-02 It was early Monday morning on October 19, 2009, as Deborah McDonald reviewed the data on her desk. Mcdonald, a business integration specialist at Upper Canada Insurance in Toronto, had just spent the weekend reviewing the information that her team had collected on the company's life insurance application process. About a month ago, Mcdonald had been asked to lead a team that would address the inefficiencies in this process, largely due to high numbers of applicants withdrawing from the system Use outside these parameters is a copyright violation. (referred to as "wastage" in the insurance industry) in the midst of the process. Although it was not unusual to have some wastage, the data indicated that Upper Canada Insurance's rates were well above industry standards, and senior management was becoming impatient. Mcdonald had until the end of the month to present her assessment and recommendations. THE LIFE INSURANCE INDUSTRY The origins of modern life insurance could be traced back to the 17th century in England and to as early as 1734 in the United States. It was not until the 1840s, however, that life insurance really became an industry. The widespread publication of natural disasters in both New York and Chicago and the reversal of a church policy that had previously banned life insurance led to rapid growth over the next 100 years." By 2009, the insurance industry had become highly competitive, with five companies in Canada accounting for 59 per cent of all premiums. Consolidation had been a continuing trend, as there were 163 insurance companies in Canada in 1990. Legislative changes in 2001 also permitted chartered banks to enter the insurance industry, thereby creating even more competition and lower margins. A growing number of companies competed on price and began to sell directly to consumers. The traditional Authorized for use only in the course Bes insurance agent was being replaced by the use of technology, especially the Internet, but an ongoing challenge remained in that companies still needed to provide a high level of customer service. While most companies offered auto, property and casualty insurance, life insurance remained one of the largest segments of the market, with 25 per cent of all premiums. Most life insurance fell into one of two http:/E zineArticles.com/? expert=James_J._Robinson Page 2 9B 10D 012 types: whole life, which covered the client through death with a guaranteed payout; and term, which covered the client for only a specified period of time with no guaranteed payment. Term was significantly less expensive and was seen as being more practical, since people often did not need insurance to protect their family into retirement. UPPER CANADA INSURANCE The Bank of Upper Canada (Upper Canada) was one of several large financial institutions in Canada, with over $345 billion in assets under administration and an eight per cent Tier 1 capital ratio in 2008. e taught by D'Arcy Mckittrick from Sep 09, 2015 to Dec 18, 2015. Upper Canada was well diversified, with clients and operations around the world and business operations in retail banking, wealth management, wholesale banking and insurance. Although insurance was a relatively new focus for Upper Canada, it was also one of the bank's most important business segments. In 2008, insurance made up 18 per cent of all revenues and generated a 33 per cent return on equity (see Exhibit 1). Upper Canada Insurance sold home, auto, travel, health and life insurance through third-party channels, including life insurance advisors and travel agents. In addition, Upper Canada Insurance had developed a growing proprietary channel, such as retail insurance branches, bank branches, call centres and online access. Insurance products were seen not only as a growth opportunity, but also as a part of the company's larger strategy to diversify its financial services to existing clients and appeal to clients that had not previously been served by Upper Canada Fleming C UPPER CANADA TERM LIFE 227) at Use outside these parameters is a copyright violation. Upper Canada's life insurance product was term life funded through premiums that were collected monthly, quarterly, semi-annually or annually for the duration of the insurance policy. Most applicants used term life insurance because it was a cost-effective way of protecting their family in the event of the policy owner's death. Term life insurance was usually designed to expire after the applicant's children had reached an age where they were no longer a dependant or at the time the applicant planned to retire. Most term policies therefore had a 10-year term On average, term life insurance had a death benefit of $331,000 and cost $573 per year. Upper Canada Insurance made the majority of its income on investment returns on the premiums paid. Based on Upper Practices in Proje Canada's current internal rate of return and the actuaries' expected pay-out, the average gross margin on a policy was roughly 31 per cent. LIFE INSURANCE APPLICATION PROCESSING Life insurance applications were generally processed in very much the same manner regardless of the sales lead. However, because Upper Canada Insurance had organized the application approval resources by sales channel, it was the 64,200 direct sales applications processed annually that concerned Mcdonald. Authorized for use only in the course One of Upper Canada's 16 life insurance advisors (LIA) first had to complete the initial application with the applicant over the phone. This stage included asking each applicant a series of qualifying questions to verify that they were eligible for life insurance. The LIA also completed a needs analysis, which was in