Orlanda,Tricia Ann A.

AB Legal Management 1-1

Human Resource Management

CASE EXERCISE 3
Demand Forecasting for an Insurance Company

QUESTIONS:
1. What demand forecasting method should the manager use?
2. Using this method, calculate the demand for claims adjusters for the next year.

ANSWERS:

1. If I were to recommend the manager, I would then use the Ration Analysis.
Rational analysis is considered to be more reliable and accurate than that of
other methods.
In table 1, it shows and indicates the direct relationship between claims adjusters
and the claims process that determined the use of ration analysis method with the
roughly estimated ratio:

Category of Claims No. of claims adjuster Roughly

claims processed processed personnel estimated Ratio
Non-life 9,350 9 1038.89 / 1039
insurance 1039:1
Life insurance 4,880 12 406.67 / 407
407:1
Health care 15,000 8 1875:1
insurance

2. Utilizing each following mentioned:

Category of Claims No. of claims adjuster Roughly
claims processed processed personnel estimated Ratio
Non-life 9,350 9 1038.89 ~ 1039
insurance 1039:1
Life insurance 4,880 12 406.67 ~ 407
407:1
Health care 15,000 8 1875:1
insurance

These are the founded calculations:

This is the projection of the number of claims to be processed:
Category of Claims No. of claims adjuster Roughly
claims processed processed personnel estimated Ratio
Non-life 12,350 11.89 / 12 1029.16 / 1029
insurance 12 1029:1
Life insurance 10,500 25.79 / 26 403.84 / 404
26 404:1
Health care 21,000 11.2 / 11 1909.09 / 1909
insurance 11 1909:1

Method on how to calculate:

Claims Processed / Roughly estimated Ratio (Table 1) = No. of claims adjuster
personnel
CP / RER = No. of claims adjuster personnel
Example: 12,350 / 1039 = 12