TABLE OF CONTENTS

CERTIFICATION ....................................................................................................................................... iv

DEDICATION .............................................................................................................................................. v

ACKNOWLEDGEMENT ........................................................................................................................... vi

CHAPTER ONE ........................................................................................................................................... 1

GENERAL PRESENTATION ..................................................................................................................... 1

1.0 INTRODUCTION........................................................................................................................... 1

1.1 BACKGROUND OF THE STUDY ............................................................................................... 2

1.1.1THE MARKETING OF INSURANCE PRODUCTS/ SERVICES ..................................................... 3

1.2 THE PROBLEM STATEMENT ................................................................................................... 3

1.3 OBJECTIVES OF THE STUDY ................................................................................................... 4

1.4 PLAN OF WORK ........................................................................................................................... 4

1.5 DEFINITION OF TERMS ............................................................................................................. 4

CHAPTER TWO .......................................................................................................................................... 6

2.1HISTORICAL BACKGROUND OF THE ORGANISATION ............................................................... 6

2.2 PRODUCTS OF AGC ............................................................................................................................ 7

2.2.1 CONTRACTOR’S ALL RISK INSURANCE .................................................................................... 7

2.2.2 PERSONAL ACCIDENT INSURANCE ............................................................................................ 7

2.2.3 FIRE AND SPECIAL PERILS INSURANCE .................................................................................... 7

2.2.7 HOUSEHOLD AND OFFICE COPREHENSIVE INSURANCE ...................................................... 8

2.2.5 MARITIME INSURANCE ................................................................................................................. 8

2.2.6 PUBLIC LIABILITY INSURANCE ................................................................................................... 8

2.2.4 BULGARY AND HOUSE BREAKING INSURANCE ..................................................................... 8

2.2.8 SMALL AND MEDIUM SCALE INDUSTRY MULTI-RISK INSURANCE. ................................. 8

i
2.2.9 COMPUTER ALL RISK INSURANCE ............................................................................................. 8

2.2.10 TRAVEL INSURANCE .................................................................................................................... 8

2.2.11 AUTOMOBILE INSURANCE ......................................................................................................... 9

2.3 ACTORS REGULATING THE ACTIVITIES OF AGC ..................................................................... 11

2.4 ORGANISATIONAL SETUP OF AGC .............................................................................................. 12

2.5 COMPETITORS OF AGC IN THE INSURANCE MARKET ............................................................ 15

2.6 ACTIVITIES CARRIED OUT BY THE INTERN IN AGC ............................................................... 16

2.6.1 AIMS AND OBJECTIVES OF THE INTERNSHIP ........................................................................ 16

2.6.2 ACTIVITIES OF THE INTERN ....................................................................................................... 17

2.6.2.1 FILING ........................................................................................................................................... 17

2.6.2.3 ACTING AS A LIAISON TO CUSTOMER SERVICING ........................................................... 18

2.6.2.4 FILLING OF REGISTERS............................................................................................................. 18

2.6.2.5 FILLING OF THE PRODUCTION REPORT ............................................................................... 18

2.6.2.6 PROSPECTION .............................................................................................................................. 18

2.7 OBSERVATIONS ................................................................................................................................ 19

2.7.1 POSITIVE OBSERVATIONS .......................................................................................................... 19

2.7.2 NEGATIVE OBSERVATIONS ........................................................................................................ 20

2.6 DISCOVERIES AT AGC ............................................................................................................. 20

2.9 QUESTIONS POSED TO THE INTERN AND ANSWERS .............................................................. 21

2.9.1 QUESTION........................................................................................................................................ 21

1 2.9.2 ANSWER................................................................................................................................... 21

CHAPTER THREE .................................................................................................................................... 22

3.1 PROBLEMS FACED BY THE COMPANY ....................................................................................... 22

3.2 POSSIBLE SOLUTIONS TO PROBLEMS FACED BY AGC ........................................................... 23

3.3 CHALLENGES FACED BY THE INTERN ....................................................................................... 24

CHAPTER FOUR....................................................................................................................................... 27

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ANALYSIS AND RECOMMENDATIONS.............................................................................................. 27

4.1 THE ANALYSIS OF AGC................................................................................................................... 27

4.1.1 The strengths ...................................................................................................................................... 27

4.1.2 The weaknesses .................................................................................................................................. 28

4.1.3 The opportunities ............................................................................................................................... 28

4.1.4 The Threats ........................................................................................................................................ 28

CHAPTER FIVE ........................................................................................................................................ 29

RECOMENDATIONS AND CONCLUTION ........................................................................................... 29

5.1 RECOMENDATIONS ......................................................................................................................... 29

5.2 CONCLUSION ................................................................................................................................... 29

REFERENCES ........................................................................................................................................... 31

iii
 CERTIFICATION
This is to certify that this report on the challenges faced by insurance
companies (AGC) in the sales of insurance products is written and presented by
ADAMU BALKISU with matricule number 16C0307, of the Higher Institute of
commerce and Management (HICM), University of Bamenda, in partial
fulfillments of the requirements of the professional training in her one month
internship at ASSURANCE GENERALES DU CAMEROUN under the
supervision of MR VUGAR PETER, the company supervisor and of Mme
SIDONIE NOUKEU, the academic supervisor.

SIGNATORIES

Academic Supervisor Company Supervisor

Mme SIDONIE NOUKEU MR VUGAR PETER

Signature ---------------- Signature---------------

Date --------------------- Date---------------------

iv
 DEDICATION
This piece of work is dedicated to my parents, Mr. Chu William Meh and Mrs.
Chu Bridget Eghem for their support throughout this work.

v
 ACKNOWLEDGEMENT
Special thanks go to my supervisors especially the one in the internship place who
assisted me at every stage of my internship, who gave me the knowledge I needed
and who inspired me to put in hard work. Also, to my colleagues and the manager
of AGC I say thank you for your corrections. To my parents, relatives and friends,
I say thank you for your support and I will forever be grateful.

vi
 CHAPTER ONE

GENERAL PRESENTATION
1.0 INTRODUCTION

Insurance is define as a contract that involves two parties, the insured and the
Insurer, whereby the insured offers a risk to the insurer and the insurer decides
whether to accept it or not. And if the insurer accepts the risk, the insured pays a
premium against that risk and any should any financial loss occurs to the subject
matter, the insurer will indemnify the insured. Insurance is practically a necessary
activity in the world today. This is because insurance is needed in all domains of
life, be it in an organization, enterprise, hospitals, homes. Insurance is just like the
roots that the tree needs in order to survive. Without insurance coverage most
people will suffer great losses that will take them a lifetime to recover the finances
lost. It is the essential means by which the disaster to any individual is shared by
many, the disaster to a community shared by other community. Insurance enables
business to operate in a cost effective manner by providing these transfer
mechanism whereby risk associated with business activities are assumed by the
third party. This is why the vision of Assurance Generals Du Cameroun (AGC ) is
there to transcend the expectations of customers for the satisfaction of their world
protection needs through the provision of quality insurance and risk management
services there by creating values for all stake holders.

In order for an insurance company to grow, it has to effectively market its

products to the public. The effective marketing of insurance products increase
market share, improve returns in the company’s effort to generally promote the
growth of insurance companies. Insurance marketing is basically the marketing of
1
insurance products in a very competitive market environment faced with a lot of
challenges in the sales of these products.

1.1 BACKGROUND OF THE STUDY

The development of insurance is influenced by the society and its economy.

Social and economic conditions largely influence the direction to which marketing
evolves. Hence marketing must continuously make an adaptation necessary for
healthy survival. The purpose of marketing is to create customer value at a profit,
monitor product/ service quality, reduce cost, speed up savings and bring greater
values to customers. Beyond this effort, each organization works to become a part
of its neighborhood through community involvement and savings project.

Marketing in an organization will generate customer value at a profit. The

truth of the matter is that the relationship between the customer and the
organization will break if value evaporates. The effective marketing of insurance
products will increase the market share, improve returns in the company and
generally promote growth of insurance companies. The marketing of insurance
products by insurance agents/brokers who act as intermediaries between the
customers and the insurance companies are central to the competitiveness of
insurance companies. Insurance intermediaries help generate new businesses by
contracting potential customers and selling one or more types of insurance
products. These intermediaries explain well the various types of policies and help
them choose policies that will best suit them. Most of these intermediaries spend a
lot of time marketing insurance products and creating their own base of clients.
Insurance agents may work for a single insurance company or an insurance
brokerage. Captive agents work exclusively for one insurance company and only
sell products of that company which employs them. While independent agents

2
work for insurance brokerages. They match insurance policies for their clients with
the company that offers them the best rate and coverage. These intermediaries
affiliated to insurance agencies like AGC Espace Clients Bamenda II have found
their world changing significantly and more difficult to market insurance products/
services. Consumers are less loyal, more informed and less independent about their
needs. Traditional ways of marketing the customer and prospects have changed
more recently. Marketing and sales functions at insurance agencies has not been to
effective to attract and retain their best customers and capture their competitors
best customers. And therefore the intern seeks to find out the challenges faced by
insurance companies in the marketing/sales of insurance products.

1.1.1THE MARKETING OF INSURANCE PRODUCTS/ SERVICES

In order to effectively compete in the insurance market, insurance companies
are required to possess certain business characteristics. Some of these are; the
assessment of customer requirement, product quality/consistency, ability to explore
an emerging market, create new businesses, generate new ideas and incorporate
them in innovations. Intensive market know how (good understanding of
customers, competitors and market environment) is considered to be one of the key
approaches to effective product sale and low cost production. Insurance markets
emphasis on the importance of customer differences and their priorities. The major
objective of insurance marketing are increasing customer awareness, successful
distribution of insurance products, developing corporate images, improving
customer base and it spreads.

1.2 THE PROBLEM STATEMENT

The lack of the understanding of the customer’s needs and expectations is a major
setback to the sales of insurance products. The insurance market in Cameroon is
3
still seller’s market rather than a buyer’s market. Also, the levels of education of
individuals, awareness, levels of income, ineffective communication, and nearness
to the market are factors that limits the purchase of insurance products and
services.

1.3 OBJECTIVES OF THE STUDY

The objective of this study is to look at the challenges affecting the sales of
insurance products and services by AGC Espace Clients Bamenda II.

1.4 PLAN OF WORK

This work covers the general introduction to insurance products/services, in
chapter one, description of the company were internship was done and the
activities carried out by the intern in chapter two, then the problems faced by the
company/intern, with solutions in chapter three and the analysis of the company in
recommendations and conclusion to the internship report in chapter four.

1.5 DEFINITION OF TERMS

AGC : Assurance Generale du Cameroon

CIMA : Conference Inter-Africaine des Marche d’Assurance

ASAC: Association des Societe d’Assurance au Cameroun

BOD: Board of Directors

GP: Gross Premium

ACC: Accessories

FC: Fixed Charges

4
CR: Carte Rose

VAT: Value Added Tax

NP: Net Premium

SWOT: Strengths, Weaknesses, Opportunities and Threats

5
 CHAPTER TWO

2.1HISTORICAL BACKGROUND OF THE ORGANISATION

ASSURANCE GENERALE DU CAMEROUN (AGC) is a limited liability
insurance company which went operational on January 2002 and presently has an
authorized share capital of one point six billion francs (1.6 billion). AGC is
registered under the ministry of finance as MINFI/DGI/CRILI/CIME AKWA
I/UG3 with immatriculation number M040100012256U. Since 2009, Assurance
Generales du Cameroun formed an alliance with Mutual Benefits Assurance, Plc,
Nigeria, with the view of offering better services with the best management of
risks expertise and strategies in an increasingly competitive and challenging
business environment.

AGC’s vision is “To transcend the expectations of our customers for the
satisfaction of their wealth protection needs through the provision of qualitative
insurance and risk management services; thereby creating value for all
stakeholders.”

And because of her vision she has as her guiding principle “To act with due care
and diligence in the pursuit of excellence in an atmosphere of mutual respect and
understanding.”

AGC has her core values as; professionalism, dynamism, integrity.

6
 AGC is led by a board of directors of proven integrity with decades of
experience, who have distinguished themselves in the fields of international
business, venture capital and finance.

2.2 PRODUCTS OF AGC

As mentioned above AGC is an insurance company that offers a variety of
products and services to the public. Some of its products are; contractor’s all risk
insurance, personal accident insurance, fire and special perils insurance,
automobile insurance, burglary and housebreaking insurance, maritime insurance,
public liability insurance, household and office comprehensive insurance policy,
small/medium scale industry multi-risk insurance, computer all risk insurance and
travel insurance.

2.2.1 CONTRACTOR’S ALL RISK INSURANCE

This is an insurance contract whereby a contractor obtains a policy to cover
all contracting works. This guarantees all risks of loss or damage to contract works
and damage to the contractor’s machinery/ equipment. It also covers third party
legal liability.

2.2.2 PERSONAL ACCIDENT INSURANCE

This guarantees benefits for death or bodily injury resulting from accidents
caused by violent and visible outward means resulting into death or permanent
disability.

2.2.3 FIRE AND SPECIAL PERILS INSURANCE

This guarantees protection of fixed assets against physical loss by fire and
allied perils like explosions, lightening, and storms.
7
 2.2.7 HOUSEHOLD AND OFFICE COPREHENSIVE INSURANCE
This covers the office premises or private dwellings against losses by theft
arising out of forcible and violent entry.

2.2.5 MARITIME INSURANCE

This covers all risk of loss or damage to goods while in transit on sea and
land.

2.2.6 PUBLIC LIABILITY INSURANCE

This insurance guarantees against legal liabilities towards third parties.

2.2.4 BULGARY AND HOUSE BREAKING INSURANCE

This insurance guarantees against material damages and loss of property.

2.2.8 SMALL AND MEDIUM SCALE INDUSTRY MULTI-RISK

INSURANCE.
This guarantees an industrial worker, a trader, a craftsman, professional or
owner of commercial premises against different risk as specified in the policy.

2.2.9 COMPUTER ALL RISK INSURANCE

This insurance provides cover for all risks of loss or damage associated to
which can either be fire, theft or outburst.

2.2.10 TRAVEL INSURANCE

This covers the insured against risk while embarking on a journey within a
specified geographical limit.

8
 2.2.11 AUTOMOBILE INSURANCE
Automobile has to do with coverage of motor vehicles. This is the most
common type of insurance in Cameroon. By the law, the automobile third party
coverage is compulsory in Cameroon so all car owners in Cameroon have to obtain
a third party insurance coverage in Cameroon which protects them against their
liabilities to others. Guarantees here include Motor vehicle liability guarantee, civil
responsibility guarantee, individual accidents guarantee, wind screen guarantee,
collision guarantee, and the comprehensive cover also known as all risk cover
which usually have exclusions in it. These guarantees have different services
which can either be fire, theft or outburst. This is the most sold product of AGC.

In automobile insurance, there are certain criteria to be considered in

underwriting their premiums. These criteria include; the characteristics and use
(category) of the vehicle, the geographical driving zone and the socio-professional
status of the habitual driver.

The characteristics of the vehicle here include;

- Vehicle with carriage or not

- Source of energy; petrol or diesel
- How may horse power, that is the capacity of the engine
- Number of seats
- Type/mark of vehicle
- What the vehicle transports; passengers( for free or for a fee) or cargo( fuel
or normal goods)

The use of the vehicle is divided into ten categories as follows;

- CATEGORY 1: Vehicles for private use.

- CATEGORY 2: Vehicles which carries goods of the insured.
9
 - CATEGORY 3: Vehicles carrying goods of third parties.
- CATEGORY 4: Vehicles used for public transportation of people. The
fourth category is divided into four
 4A: Vehicles with 1-9 seats
 4B: vehicles having more than 9 seats
 4C: School buses and buses carrying employees for companies.
- CATEGORY 5: This category is divided into two.
 5A: Motor bikes used for private use.
 5B: Motor bikes for private transportation or commercial purposes.
- CATEGORY 6: W garage. The sixth category is also divided into two.
 6A: For mechanics
 6B: By specialist
- CATEGORY 7: Driving schools.
- CATEGORY 8: Renting cars without drivers.
- CATEGOTY 9: Heavy work trucks like Caterpillars.
- CATEGORY 10: Ambulances and funeral cars.

The geographical zone in Cameroon is divided into three zones, which are;

- ZONE A: Major towns or the capital town of the regions. These include;
Yaounde, Douala, Bamenda, Garoua, Bertoua, Maroua, Ngaoundere,
Ebolowa, Baffoussam, Buea.
- ZONE B: This refers to the head of divisions; examples are Mezam, Wum,
Ndop, and Momo.
- ZONE C: This refers to sub divisions and villages. Examples are Bafut, Bali,
and Esu.

10
The socio-professional status here refers to the whether they are normal users or
commercial agents or the church.

2.3 FACTORS REGULATING THE ACTIVITIES OF AGC

The actors that regulate the activities of AGC in Cameroon are the same
actors that regulate all insurance companies in Cameroon. The actors include
CIMA, ASAC, Intermediaries, the insurer, insured, the state and the reinsurer.

a) CIMA: (Conference Inter-Africaine des Marche assurance).This is the law

governing insurance companies in French speaking countries in Africa. It is
a code made up of articles which all insurance companies in French
speaking countries must follow.
b) ASAC: (Association des Societe d’Assurance au Cameroon.).This is the
association of insurance companies in Cameroon. It looks at the activities of
each insurance company if it works hand in hand with the laws of the CIMA
code.
c) Intermediaries: The intermediaries consist of the agents and brokers. A
broker is a moral or physical person from private law which deals with many
companies at the same time. An agent is a moral person from private law
linked to the company he represents in the field and his portfolio of
companies belongs to that company.
d) Insurer: This is the insurance company that accepts a risk and also accepts to
indemnify the insured should he suffer any financial losses to the subject
matter.

11
 e) Insured: This is the person who comes to obtain the insurance cover. He is
also known as the policy holder. He pays a premium against the risk offered
to the insurer.
f) The State: It is precisely the division of insurance inside the ministry of
finance. They determine and place the premium that will be used by all
insurance companies in Cameroon under the third party compulsory motor
insurance in Cameroon. They also regulate the technical reserves of the
insurance companies.
g) Reinsurer: This is an insurance company that insures risk that has already
been insured. It is in charge of the reinsurance reserves of the insurance
companies and serves as a shock absorber of the insurance companies.

2.4 ORGANISATIONAL SETUP OF AGC

Every organization should have it own structure in order to operate
efficiently. The organizational structure refers to the hierarchy of employers/
employees and their functions. The organizational structure of an organization tells
you the character of the organization and the values it believes in. organization
turns to adopt structures depending on the organizational values and the nature of
business. AGC is no exception when it comes to adopting a structure for an
effective management. Below is an illustration of the organizational chart of AGC
and their various responsibilities.

12
2.4.1 ORGANIZATIONAL SETUP CHART

MANAGING DIRECTOR

HUMAN PRODUCTION ADMINISTRATI ACCIDENT

RESOURCE VE FINANCIAL SERVICE
SERVICE
DIRECTOR DIRECTOR
DIRECTOR DIRECTOR

REGIONAL
DIRECTOR

MANAGER OF GENERAL AGENT

DIRECT OFFICE

SECRETARY PRODUCER PRODUCER

/CASHIER NUMBER 1 NUMBER 2

COMMERCIAL STAFF AGENTS

13
2.4.2 THE VARIOUS DEPARTMENTS AND THEIR FUNCTIONS

Managing director: Oversees the smooth running of the entire company by

insuring the implementation of its lay down policies by the board of directors
(BOD), ministry of finance and CIMA.

Human resource director: Is charged with the recruitment/ promotion of

workers or employees and their welfare (working conditions).

Production service director: Is charged with the conception and the

establishment of new products while insuring that lay down procedures are strictly
implemented. He oversees the inputs and outputs of designs products and service
with working material that is attestations etc.

Administration and financial director: Ensures that income and

expenditure are in line with the company policies and profitability.

Accident service director: Oversees the processing of accident files for the
client and their eventual indemnification (paying for claims)

Regional director: It is subdivided into regions managed by regional

directors. The regional director oversees the smooth running of offices under his
control and in relation to overall objectives of the company.

Manager of direct office: Takes decisions that influence the activities of

the offices jurisdiction.

General agent: They are the intermediary that is operating as an

independent sales agent with an office as such oversees the activities in relation to
the overall objectives of the company.

14
 Secretary / cashier: They are charged with the production of insurance
contracts for clients, bank transactions, production of week / monthly financial
reports and other clerical task that is the production of service notes and
correspondence.

Producer number 1: They are charged with the sales of the company
products and coordinate the commercial staffs.

Producer number 2: They are also charged with the sales of insuring
products and assist with coordination of the commercial staffs

Commercial staff agents: They are of two categories namely the

independent agents and the contracted agents. Independent agent receives
commissions for the sales of the company products. Contracted agent receives a
fixed amount at the end of month. Both categories are charged with the sales of the
insurance products/ services.

2.5 COMPETITORS OF AGC IN THE INSURANCE MARKET

 Zenithe Insurance Company
 Samaritan Insurance Company
 Beneficial Life Insurance Company
 Activa Assurance/Activa Insurance Company
 Saham Insurance Company
 Saar Insurance Company
 Pro assur Insurance Company
 Channas Insurance Company
 EVERGREEN Insurance

15
 2.6 ACTIVITIES CARRIED OUT BY THE INTERN IN AGC

2.6.1 AIMS AND OBJECTIVES OF THE INTERNSHIP

There are very few cases that provide graduates with a specific professional
qualification. It’s generally difficult for one to define and implement ones personal
career plans. An internship can be of considerable benefits in this respect.

Internship introduces one to potential field work environment and one will
be able to decide whether this leads to ones career wishes of interest. One can also
acquire important supplementary skills during an internship and makes contact
with potential future inquired.

An internship provides one with work experience that is directly related to

ones field of interest. All internship teaches one soft skills and every employer is
looking for soft skills (which is why behavioral interviewing is so prevalent). Most
employers rank interpersonal communication and team working skills above
technical aptitude. There is better way to acquire these skills than to jump into a
corporate environment. It doesn’t matter if you will be working for a small start up
or a future 500 companies. Regardless you will be learning firsthand how to work
with coworkers of all ages, function in a staff meeting, wrestle with a fax machine,
communicate with a supervisor and may be even navigate the company picnic.
This is truly on the job training, one may not personally see a difference in oneself
but one will live abet wiser, more mature, and more confident and a better
candidate for the next internship or full time job. Therefore, the payoff of an

16
unpaid internship is that you will gain invaluable personal experience, where one
might order wise none, yourself confidence and self esteem grows.

An internship will make it easier for one to find work and make up in good
style in ones career and will not only help one in ones career but also in planning
ones studies. The experience one gains during internship will indicate how one
should structure your future studies particularly when it comes to deciding what
aspects one should focus on. An internship and ones studies focus will first help
one how to study ones individual career profile.

2.6.2 ACTIVITIES OF THE INTERN

Being an intern in AGC and having to acquaint myself with the
products/services offered by AGC Espace clients Bamenda II, I had to play a
supportive role. This role had several tasks that were interrelated with each other.
These ranged from carrying out routines, clerical tasks, errands, filling, had to
serve as a liaison and prospection.

2.6.2.1 FILING
I had the tasks of managing customer’s files and other records in the office.
The filling method used was the alpha-numeric, where customer’s files were
arranged alphabetically and files with same alphabets arranged numerically based
on the client’s number. A client number is a number allocated to a client based on
their subscription. These files were then arranged and placed on their
corresponding shelves based on their alphabetical and numerical order.

17
 2.6.2.3 ACTING AS A LIAISON TO CUSTOMER SERVICING
At the level of the customer servicing, one had to arrange appointments
(counseling and re-scheduling appointments), when the manager was not on seat.
Also, counseling of clients on what policy choices to make and educating them on
the claim procedure in an event of a risk occurring.

2.6.2.4 FILLING OF REGISTERS

Whenever a policy is established, the next step is to fill the production
register. This register serves as a manual back up for data patterning to individual
clients and the commercial staff involved. The information written on this register
has as source the insurance policy. This register contains columns for date of
which contract was established, name of the insured, policy number,
immatriculation of vehicle, name of commercial staff involved, the net premium,
gross premium, effective date of policy and expiry date of policy.

2.6.2.5 FILLING OF THE PRODUCTION REPORT

At the end of every week, several reports were expected to be produced and
forwarded to the production/accounting department. These reports were prepared
using the Microsoft excel program. There were several reports involved which
ranged from “etat de production mensuelle”, “fiche de production hebdomadaire”,
“caisse central” and “fiche d’inventaire mensuel de stock”.

2.6.2.6 PROSPECTION
As an intern in AGC, I had to carry out a major task which was the
prospection of clients. In order to effectively carry out the prospection, I was
orientated on the products/services of the company and the sales of these products
to prospective clients. I was also taught the triangle of success, which was a
18
triangle showing the percentage one ought to know about the products, the market
and yourself. That is one need to know 60% of the company’s products, 20% of the
market and 20% of self confidence about what you are going to sell.

60%

20% 20%

After the orientation, the intern was to go out to the field with a commercial staff
and do prospection with the hope of earning commissions if any of these clients
subscribe. It is in this course of carrying out this task, that the intern was able to
appreciate firsthand the challenges faced by insurance companies, AGC in
particular, in the sales of insurance products/services.

2.7 OBSERVATIONS
Being an intern in AGC, I observed so many things both positive and
negative but of which the positive over shadow the negative.

2.7.1 POSITIVE OBSERVATIONS

 Every department in AGC work hand in gloves for the success of the
company that is, one department cannot do without the other.

19
  The workers of AGC Espace Clients Bamenda are bilingual, that is they can
speak both English and French thus making communication between the
workers and clients easy.
 Also, the workers are very friendly and polite to their customers. For
example if one enters the office, a seat is offered to him, thereafter a cup of
tea or coffee.
 Moreover, the working environment is not tense but rather friendly,
everyone feels comfortable.
 Those insurance products are not given out on credit according to article 13
of the CIMA code and if a worker goes against this rule, there will be
serious sanctions. They are well conscious of the regulations of the CIMA.

2.7.2 NEGATIVE OBSERVATIONS

 Clients mostly obtain the third party cover just because it is compulsory in
Cameroon and not because it is for their security.
 Also most clients obtain a short period insurance which turns to be
expensive for them.

2.6 DISCOVERIES AT AGC

 What the intern discovered at AGC was that most clients come for the
automobile insurance since it is compulsory, they do not even know the
importance of the other policies. This means the rate of illiteracy on
insurance is very high.
 The works of the four runners of scientific management for instance Robert
Owen [1771-1858] is also put into serious practice in AGC. AGC follows
Robert ideas closely to improve the living and working conditions for its
employees for example, Employees have well equipped seats and tables and
20
 computers to ease work in the organization. The Environment is very clean
that is, it is arranged every evening after the workers have gone back home
for the just to come back the next morning and start work immediately.

2.9 QUESTIONS POSED TO THE INTERN AND ANSWERS

2.9.1 QUESTION
Mr. Peter owns a Toyota Corolla, using petrol as its energy source with a
7CV, he is a teacher and lives in Bamenda and he wants insurance on his car for
one year. Calculate his total premium.

1 2.9.2 ANSWER
Mr. Peter is in zone A, and his vehicle belongs to category 1.

According to the general tariff given by the state, he will pay a gross premium of
70877 FRS.

GP = 70877FRS
ACC = 2500FRS
FC =250FRS
CR =1000FRS
VAT = (GP + ACC + FC) X 19.25%
= (70877+2500+250) X 0.1925
= 73627 X 0.1925
VAT = 14173FRS
NP = GP + ACC + FC + CR + VAT
NP = 70877+2500+250+ 1000 +14173
NP = 88800FRS
21
 CHAPTER THREE

3.1 PROBLEMS FACED BY THE COMPANY

 One of the challenges faced by AGC, is the unhealthy competition in the
insurance market with competitors. Competitors underrate their premiums to
clients thereby gaining a greater share of the market of those ignorant of how
insurance works. Instead of educating the clients on how insurance works
and stating an average insurance, they instead turn to accept the little
premium they pay and issuing them fake insurance and when the risk occurs
they do not want to pay claims because their premium was insufficient to
cover the risk they insured against.
 Another problem faced by the company is the fact prospective clients think
that insurance companies do not pay claims and even they do the process is
often slow and tedious. This is because decision making is always based at
the head office.
 Also the false notion that clients have in case of automobile insurance that
insurance is a police document, as a result they go for fraud insurance, which
is cheaper but they do not know that it is at their own risk and getting the
right policy is at their own benefit.
 Moreover, with the computerized nature of the systems used in AGC, and
with no standby generator, the company tends to lose its customers to
competitors in case of an urgent insurance policy.
 Furthermore the inadequate of experts like underwriters, loss assessors,
claim adjusters in the field of insurance. Most of their workers are not
insurance based, that is most of them do not know the ethics, the functioning
of the job all they know is profit making, prospecting and not taking out time

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 to explain to clients how the insurance policy functions and what documents
to compile when the risks occurs and the time limit to report a risk insured
against. This really makes the functioning and running of the company slow.
 There is also a steady decline in the sales of insurance policies as a result of
lack of commercial agents.

3.2 POSSIBLE SOLUTIONS TO PROBLEMS FACED BY AGC

To every problem exists a solution. The following are possible solutions to
the problems listed above.

 The issue of unhealthy competition has been tackled at the level of ASAC.
The company has send a complaint to ASAC, so that they could call to order
companies that are involved in unhealthy competition and also routine
controls be done in order to identify fraudsters and call them to justice.
 With the slow and tedious nature of the indemnification process (claim
payment), the BOD should institute a claim investigation, loss assessing and
claim payment department in every region to oversee the settlement of
claims in each of the regions rather than concentrating all the work in their
head offices which makes the work slow.
 Seminars should be called up by regulatory authorities on the education of
the forces of order, to be able to identify fraud policies, which will go a long
way to solve the problem of fraudulent insurance companies.
 In order for AGC to manage its risks of losing its customers, in case of light
outs, they should acquire a standby generator, to oversee the smooth
functioning of the company and maintaining their production and why not
increase productivity.

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 Also the company should open up a counseling department, in order to
educate their clients on the importance of insurance, and also create
television programs on insurance, which will go long way to wipe out the
notion of insurance being a police document.
 The need for the company to change their commercial policy to favour
commercial staffs be them captive or independent agents. This is because
they constitute the sales force of every insurance company and without them
the company cannot effectively compete with other companies which have
large sales force.

3.3 CHALLENGES FACED BY THE INTERN

 The first challenge the intern encountered was that of counseling a client on
the event of a risk occurring. Most clients expect companies to react
immediately when a risk occurs but when explained the procedure involved,
some often go home discouraged, which reinforces the notion that insurance
companies do not pay claims and even if they do the process is often long
and tedious.
 Another challenge was that of recording of the production report using the
Microsoft excel program. This was because I had done the theoretical part of
the program but not the practical. Though it was challenging, I had the
opportunity to put to use what I had learned from the classroom after my
orientation on what to do at each level of the report. Most of these reports
required formulae that I had to learn on the spot, which were difficult to
remember at the beginning but after continuous use, I became use to it. This
was truly a tough but exciting experience.
 The most challenging part of my internship was prospection. The fact the
services/products offered were intangible was a major challenge since
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 customers could only benefit or have value of the products they bought
when the risk occurred. So managing the physical to an abstract offer was
not so easy. To most of these clients insurance was just a police document,
no doubt most resorted to fraudsters for fake insurance to avoid police
routine checks.
This is a major challenge when it comes to the sales of insurance
products/services, coupled with the fact customers think insurance
companies do not pay claims and even if they do, the process is always slow
and tedious which they feel reluctant to pursue.
In addition to this, the competiveness of the market has made some
companies to resort to unhealthy reductions to premiums which are not in
line with the official tariff stated by the CIMA Code and the state. This
makes it difficult to sell as prescribed by the official tariff. That is why new
comers like myself who have never been in the field before easily get
discourage and most quit because they belief they cannot compete with those
who have been there for several year like independent sales agents, brokers
and captive agents.
I tried solving this problem of prospection by pleading for their listening
ears, telling them the benefits of insurance and not actually asking them to
purchase insurance directly, but outlining the benefit of getting the real
policies and how beneficial it will be to them and by telling them to always
get advice on the policy conditions and terms so as to do the right thing. As
an end result some did listened while others did not.
 Most of those I prospected took me as a student and told me that when I go
back to school, there will be no one to follow up their claims. And some
only had to say insurance companies are thieves and when you get closer to
tell you why they think so, some will attribute it to the non payment of
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claims while some will attribute it the non payment of claims to a friend or
family member, they actually do not know how it works.
The only way I could solve this problem is by redirecting them to my
company supervisor or the manager if they get interested in purchasing the
product or service of the company.

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 CHAPTER FOUR

ANALYSIS AND RECOMMENDATIONS

4.1 THE ANALYSIS OF AGC

The analysis that the intern used was the SWOT analysis, which stands for
the Strengths, Weakness, Opportunities and Threats of an organization.

4.1.1 The strengths

 AGC has a national network that connects one office computer to another all
over the country. So failure of one computer in an office, the employee can
go to a nearby office and finish his/her work there, all he needs is the pass
code of his office.
 Also all the policies in AGC are computerized, using the Mercure software
program recommended by CIMA.
 Furthermore, AGC has so many offices located all over the country and
moreover many in the North West region which eases customers
accessibility to policies.
 AGC has a standby fire extinguisher, which reduces the risk of fire
destroying the office. This is because if fire broke out in the building, the
fire extinguisher can be easily used to stop the fire.
 AGC establishes a good relationship with its customers which always make
them come back. For example giving coffee/tea a customer while his policy
is been produced and the kind treatment he receives always makes him to
come back.

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4.1.2 The weaknesses
 AGC has inadequate commercial staffs because commercial policies do not
favour them like the commercial rates which are very low and discouraging.
This makes AGC not having enough agents to prospect for them and secure
a good market proportion.
 In addition, AGC Espace Clients Bamenda II does not have a standby
generator, in case of light outs, it will lose its customers to competitors.
 AGC uses the MTN internet network which at times is very poor, making
customers wait for so long and at times customers are not always patient.

4.1.3 The opportunities

 There are lots of graduates from higher learning institutions that the
company can make use of, who can actually raise the standards of the
company.
 Also, there is there is a good portion of the market that is ignorant of
insurance policies, so they have the opportunity to exploit this market.

4.1.4 The Threats

 The competitive nature of the insurance market makes companies even want
to sell their policies below the standard rate provided by the state.
 AGC is fast losing their customers because of the strict nature of their
policies and also because there is no substitute when electricity is cut off.

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 CHAPTER FIVE

RECOMENDATIONS AND CONCLUTION

5.1 RECOMENDATIONS
 AGC should employ skillful workers which are marketers, insurers, who
effectively do the work.
 AGC should buy a standby generator for his offices.
 AGC should do effective and efficient marketing and advertisement on its
products to gain a greater portion of the market.
 Motivation should be given to their loyal customers in order to keep them
and even to encourage them.
 Payment of claims should be facilitated so as to wipe out the bad image
insurance companies have.
 AGC should participate in sponsoring programs so as to gradually make
them known to the public, like sporting events, scholarships to students, just
to name a few.
 They should concentrate more on sensitizing the public of the benefits of
insurance.
 They should often train their employees on insurance because most of them
working there lack some knowledge on insurance.

5.2 CONCLUSION
Carrying out internship was really necessary for me. This is because I
got to learn what field work is all about. The intern learned that what is taught
in the classroom is different from what is practiced in the field, though the gap

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of the difference is not that wide. I really felt great being out the classroom,
trying to implement what I learned from school. Though faced with the above
challenges, one had to still go through all thanks to God.

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 REFERENCES

 AGC Espace Client Bamenda II

 The Internet
 Noble et al, 2002.

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