I need answer of this case study

2012_qp.pdf PART I Case study This question is worth 30 marks To gain maximum marks you should Include relevant ex aading In your answer 1. Case study You are the newly appointed Claims Manager of XYZ Insurance (XYZ) which is a long established general insurer writing a mix of general commercial business nationwide, from a single central London office. XYZ's financial results have deteriorated over the last two years; policy volumes and premium income have fallen whilst costs have increased. As a result the Managing Director (MD) has recently been replaced by a new MD who has a banking background and does not have an in-depth knowledge of insurance claims management In the first few months in the position, the MD has undertaken high level reviews of the different departments within XYZ. The MD has commissioned market research to investigate poor levels of customer retention amongst both larger commercial policyholders (that make up the bulk of XYZ's customer base) and their brokers. The research has revealed that the main reason given by risk managers for non-renewal s not the price of the renewing policy, but their dissatisfaction with the service they received from the claims department. The brokers have elaborated that this dissatisfaction is largely as a result of perceived poor control of costs. The MD has given you the research report which includes these comments about the claims service. Policyholder 1: I don't believe that the claims handler knew what he was doing - he had to keep asking for authority from his manager before he could agree any aspect of the claim, and that always seemed to take ages. The whole thing just took too long to be agreed and paid, and our cash flow suffered as a result." Policyholder 2: I don't think that XYZ dealt with the liability claim made against us very well at all. They didn't pursue the other parties involved and I think our claims record now shows a higher figure than if the claim had been handled properly Broker. " deal with many claims departments and I felt that the loss adjuster and lawyer that were instructed by XYZ on my client's claim didn't seem to have any clear direction and I am sure that costs were wasted as a result. The MD has concluded from this research that XYZ has lost customers because the claims department is not operating efficiently and that the claims handlers are not managing the costs of claims effectively.His review also indicates that the expenditure incurred by the claims department has increased substantially over the last two years, The MD identified that the amount paid out in claims is the single largest expense of the company and his initial view is that the claims department should be set a target to reduce their outlay by 10% during the next financial year.! Question Write a report for the Managing Director which addresses the issues he has raised The report will also be reviewed by the non-executive directors, who are not familiar with how the claims department operates Your report should analyse the likely impact of a 10de cut in claims costs! internal and external costs: g indemnity spend conclude with your recommendations the steps that whilst improving customer retention taken to control costs (80)