CHAPTER ONE

INTRODUCTION

1.1 Background to the study

The business environment of the 21st century is so dynamic and competitive and so leaders in the business insurance world have recognized the importance of customer service and customer base management in Insurance more than ever before.

Insurance has a history that dates back to the ancient world. Over the centuries, it has developed into a Modern business of protecting people from various risks. The industry has been profitable for many years and has been an important aspect of private and public long-term finance and can be traced back to the city fire London which occurred in 1666.After it destroyed more than 30,000 Homes.A named man Nicholas Barbon started building Insurance He later introduce the city fire insurance company in the 1940 insurance surface

In the ancient world, the first forms of insurance were recorded by the Babylonian and Chinese traders. To limit the loss of goods, merchants would divide their items among various ships that had cross treacherous waters. One of the first documented loss limitation methods was noted in the code of Hammurabi, which was written around 1750BC.The concept insurance dates back to at least 18th century BC with the code Hammurabi.

Under these methods, a merchant receiving a loan would be cancelled if the shipment were stolen. The first to unsure their people were the Achaemenian monarch and insurance records were submitted to notary offices. Insurance was also noted for gifts of substantial value. These gifts were given to monarchs. By recording their gifts a register givers would receive help from a monarch by proving the gifts existence if they were in trouble.

As the ancient world evolved, maritime loans with rates based on favorable seasons for traveling surfaced. Around 600BC, the Greeks and roman formed the first types of life and health insurance with their benevolent societies. These societies provided care for families of deceased citizens. Such societies continue for centuries in many different areas of the world and included funerary in many different areas of the world and included funerary rituals. In the 12th century in Anatolia, a type of state insurance was introduced. If traders were robbed in the area, the state treasury would reimburse them for their losses.

Stand lone insurance policies that were not tied to contracts or loans surfaced in Genoa in the 14th century. This is where the first documented insurance policy came from in 1347. In the following century, stand lone maritime insurance was formed. With this type of insurance, premiums varied based on unique risks. However, the separation of insurance from contracts and loans was a major change that would influence insurance for the rest of time.

The first book printed on the subject of insurance was penned by Pedro DE Santarem, and the literature was published in 1552. As the renaissance ended in Europe, insurance evolved into a much more sophisticated form of protection with areas were still dominated by friendly societies that collected money to pay for medical Expenses and funerals. However, the end of the 17th century introduced a rapid expansion of London’s importance in the world of trade.

This also increased the need for cargo insurance. London became a hub for companies or people who were willing to merchant traders. Lloyd’s of London, one of London’s leading insurers, is still a major insurance business in the city.

Modern insurance can be traced back to the city’s great fire of London, which occurred in 1666. After it destroyed more than 30.000 homes, a man named Nicholas Barbon started a building, insurance business. He later introduced the city’s frit fire insurance company. Accident insurance was made available in the late 19th century, and it was very similar to modern disability coverage.

In U.S History, the first insurance company was based in South Carolina and opened in 1732 to offer fire coverage. Benjamin France in started a company in the 1950s, which collected contributions for preventing disastrous fires from destroying building. As the 1800s arrived and passed, insurance companies evolved to include life insurance and several other forms of coverage. No type of insurance was mandatory in the United States until the 1930s. At that time, the government created social security. In the 1940s, G1 insurance surfaced.

It helped ease the financial difficulties of women whose husband died while fighting in World War II. It wasn’t until the 1980s that the need for car insurance grew enough that steps were taken to make it mandatory. Although insurance is an established business, it is still changing and will change in the future to meet the evolving needs of consumers.

An economy can be defined as the state of a country or region in terms of the production and consumption of goods and services and the money. Cameroons market-based, diversified economy features oil and gas, timber, aluminum, agriculture, mining and the service sector. The economy of Cameroon like any other economy in the world suffered some economic crisis in 1986 as a result of changing international economic and domestic policy environment (Derrick, 1992) which once boomed in the mid 1970 with a 7% growth rate and a per capital income of $800 which saw the collapse of some banks in Cameroon such as the Cameroon bank, meridian BIAO and BICIC Cameron responded to this crisis by reducing public expenditure (Whit Thompson, Sep 13).

1.2 Problems Statement

Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damages, illness a death in return for payment of a specified premium. That is to say insurance is a means of protection from financial loss.one of the major problems that slow down  growth in the insurance industry is lack of trust which is a reason why many individual to border with insurance

Most companies with good customer service and data base management expect better turn over or growth in the company which sometimes is difficult due to High Competition so most companies with good customer service and data base management over the year’s haven’t been able to get growth or number of client that they expected or anticipated.

Because insurance companies make money by investing premium payments, the economy can greatly impact an insurance business. … When the economy is doing well, investment returns will increase and insurance companies may be more likely to accept a claim.But if the Economy is instable it will limit claims Acceptance.

1.3 Research Objectives

The main objective of the study is to determine the impact of customer service on the growth of insurance companies in the southwest region of Cameroon.

The study also makes use of specific Objectives such as

1. To Analyze the role of customer retention on the performance of insurance companies.
2. To examine the effect of customer feedback and recommendation on the performance of insurance companies.

Read More: Human Resources Project Topics with Materials