INSURANCE COMPANIES AND THEIR IMPACT ON ECONOMIC DEVELOPMENT OF NIGERIA
ABSTRACT
Business produce goods and services to satisfy the demand of customers. Much as these businesses declare profit year-in-year-out, they also face element of risk and uncertainties that may causes losses. This includes fire, theft, damage by artificial or natural agents and so forth. The business men in the olden days engage into economic activities with pessimism and fear of incurring losses. This inhibits large scale production which is capital intensive.
However, with the advent of the insurance business, things improved for the between, as business men become encouraged to commit more of their resources in production activities,knowing fully well that the insurer will reimburse item in the event of damage or loss. Simply put, insurance is a contract of utmost good faith in which the insurer will pay compensation to a policy holder for loss or damage of insured items.Meanwhile, the practice of insurance has become a lucrative business in itself,such that it contributes enormously to the national development in items of employment opportunity provision as well as Gross Domestic Product (GDP)Thus, the interest of the research is aroused to carry out a study in this important,yet neglected sector of the economy with a view of sensitizing the students,business men and the entire public of the benefits derivable from the insurance business. The public policy makers shall be intimated as to the areas that require further regulations and or deregulation.
The researcher therefore employed and secondary sources of data collection in order to do justice to the topic. Chi-square technique of data analysis was used to fully digest the sourced information. This technique is quantitative and its choice was informed by its ability to give a pictorial view of the research findings numerically. Similarly, NICON insurance company was the focus as a case study.The most important among the research findings include the lack of awareness on insurance issues by the teaming Nigerian populations, minimal coverage of the industry's activities in such important sector as health and agriculture, lack of adequate government as well as private sector participation in insurance business, death of professionally qualified staff operating with the industry to boost the confidence of patronizers; vague and intricate operational mechanism and of course public suspicion about the sincerity of purpose with which the insurance business is dispensed, the researcher, hence, proffered such remedial recommendations as infusion of deep sense of professionalism by practitioners in the industry with a view to fostering public confidence, inclusion of insurance training in schools curriculum right from secondary to post secondary institutions as mandatory especially for science students, sponsored programmes on point and electronic media outfits on insurance matters, increased government participation and deregulation of stringent rules barring the engagement of private sector into insurance business and up-front settlement of genuine claims as they fall due.
CHAPTER ONE
1.0 Introduction
1.1 Background of the study
The developments in our society have made living complex and risky to life and properties. This has become so great that the traditional methods of assisting those affected by misfortunes in our societies are no longer adequate. Therefore, societies call for a more reliable and adequate means by which risk or any misfortunes can be covered in the future, and here lies the importance of insurance which safeguard against risks or losses incurred by clients.Majority of the people in our society today are either ignorant or have a misconception of what insurance entails, what role it plays or its usefulness in the promotion of trade and commerce.
As a service industry insurance plays a very important role in the economic and social development of a nation. In appreciation of this, the government has continued to take steps to regulate the activities of the insurance business in order to crate a sound and efficient insurance market.Insurance business is one of the subjects that have been securing the public in this country. Many people outside the periphery of the business have looked at the institution with disdain and they are simply suspicious of the insurer and their styles of business. They claimed that insurer are only interested in collecting premium and hardly settle claims, whenever they arise.
1.2 Statement of the Problem
The insurance industry is one of the misrepresented or misunderstood businesses in the world. This is mainly due to lack of knowledge on the part of the public concerning their activities. The degree of knowledge varies from century to century and is relative to the state of socio-economy development in each individual country concerned, which may in turn be governed by the level of the literacy component of each community. In a developing economy, problems associated with the misconception of the impact of insurance are not as pronounced as in under developed countries, including Nigeria.All attempts in developing a sound insurance industry have been confronted by market distortions, high rate of inflation, various governmental regulations, unethical practices and fraudulent tendencies of the insuring public there are overwhelming. There are a few behaviors,which indicate that the Nigerian public, literate or otherwise, know little or nothing about the operation of the insurance business.
Consequently, many questions have been asked. Should insurance companies/brokers continue to exploit the general public as a result of their ignorance about the industry? Is there any need to control the business at all? What are the control measures? These are the questions, which shall be address my self within the essay together with same brief suggestions,and methods by which the loopholes discovered could be corrected.Therefore, this research work aims at highlighting the various function or importance of insurance industry to individuals and whole society of Nigeria.
1.3 Objective of the Study
On a cursory look at the insurance mechanism, it would be seen that insurance is a service rendering business. There are special social characteristics of insurance that set it apart from tangible goods industries.Being mostly a contract of indemnity and more so that insurance is a commodity, which people pay for in advance and whose benefits are reaped in the future.Furthermore, the objective of the study is to throw more light on the activities of the insurance with the view to arousing the awareness of the policy holders and prospective ones.
This will be achieved by highlighting the insurance mechanism, discovering the weak areas that need to be strengthened and recommendations will be proffered for further study.Also the study is to highlight the fundamental principles of insurance, which the society has not been able to recognize. This work is made in such way as to highlight the need for insurance in our society.
Taking all these into consideration, the following are the objectives of this study; The main objective of this study is to outline the functions, roles and contribution of insurance companies to the development of the national economy.To identify if insurance companies are useful to our day-to-day activities.To ascertain if insurance companies actually perform their financial roles diligently.To suggest ways of improving the functions of the insurance companies.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
Insurance Companies and Their Impact on Economic Development of Nigeria can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
TABLE OF CONTENTSPRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
- Introduction
- 1.1 Background of the study 1
- 1.2 Statement of the problem 2
- 1.3 Assumption of the study 3
- 1.4 Objective of the study 4
- 1.5 Significance of the study 5
- 1.6 Hypothesis of the study 6
- 1.7 Scope of the study 6
- 1.8 Limitation of the study 6
- 1.9 Plan of the study 7-8
REFERENCES
9
- Literature Review
- 2.1 Introduction 10
- 2.2 Insurance Companies and their Impact on the Economic Development of Nigeria. 10
- 2.3 Function of Insurance Companies. 12
- 2.4 The Risk that can be insured 14
- 2.5 Types of Insurance 17
- 2.6 The Nigerian Insurance Market 22
- 2.7 How Modern Insurance Works 27
- 2.8 Fundamental Principles of Insurance Lawand Practice 28
- 2.9 Importance of Insurance Companies in theNational Economy. 32
- 2.10 Summary 34
REFERENCES
36
- Research Methodology
- 3.1 Introduction 37
- 3.2 Research Design 37
- 3.3 Method of Data Collection 38
- 3.4 Documentary 38
- 3.5 Procedure for Data Collection 39
- 3.6 Population of the Study 39
- 3.7 Method used in Analysing Data Collected 40
- 3.8 Summary 41
REFERENCES
42
- Data Presentation and Analysis
- 4.1 Introduction 43
- 4.2 Hypothesis Testing 53
- 4.3 Five-Year Analysis of the Performance of the Insurance Industry. 60
REFERENCES
63
- Summary, Conclusion and Recommendation
- 5.1 Introduction 64
- 5.2 Summary 64
- 5.3 Conclusion 65
- 5.4 Recommendation 67
- 5.5 Suggestion for Further Studies 70
REFERENCES
73
BIBLIOGRAPHY
QUESTIONNAIRE
Disclaimer for Complete Material Utilization
The displayed research work titled "Insurance Companies and Their Impact on Economic Development of Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
PRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
- Introduction
- 1.1 Background of the study 1
- 1.2 Statement of the problem 2
- 1.3 Assumption of the study 3
- 1.4 Objective of the study 4
- 1.5 Significance of the study 5
- 1.6 Hypothesis of the study 6
- 1.7 Scope of the study 6
- 1.8 Limitation of the study 6
- 1.9 Plan of the study 7-8
REFERENCES
9- Literature Review
- 2.1 Introduction 10
- 2.2 Insurance Companies and their Impact on the Economic Development of Nigeria. 10
- 2.3 Function of Insurance Companies. 12
- 2.4 The Risk that can be insured 14
- 2.5 Types of Insurance 17
- 2.6 The Nigerian Insurance Market 22
- 2.7 How Modern Insurance Works 27
- 2.8 Fundamental Principles of Insurance Lawand Practice 28
- 2.9 Importance of Insurance Companies in theNational Economy. 32
- 2.10 Summary 34
REFERENCES
36- Research Methodology
- 3.1 Introduction 37
- 3.2 Research Design 37
- 3.3 Method of Data Collection 38
- 3.4 Documentary 38
- 3.5 Procedure for Data Collection 39
- 3.6 Population of the Study 39
- 3.7 Method used in Analysing Data Collected 40
- 3.8 Summary 41
REFERENCES
42- Data Presentation and Analysis
- 4.1 Introduction 43
- 4.2 Hypothesis Testing 53
- 4.3 Five-Year Analysis of the Performance of the Insurance Industry. 60
REFERENCES
63- Summary, Conclusion and Recommendation
- 5.1 Introduction 64
- 5.2 Summary 64
- 5.3 Conclusion 65
- 5.4 Recommendation 67
- 5.5 Suggestion for Further Studies 70
REFERENCES
73BIBLIOGRAPHY
Disclaimer for Complete Material Utilization
The displayed research work titled "Insurance Companies and Their Impact on Economic Development of Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can the material for “The Appraisal of Income Tax Collection and Administration in Nigeria” be used as a guide for Business Administration and Management (BAM) Project?
Yes it can be used — Tax is a compulsory payment made on different basis and rates by citizens to government, non-negotiably but obligatorily. The aim of the study is to appraise the Income Tax Collection and Administration in Nigeria. In achieving this aim, the following specific objectives were laid out to find out the extent to which the resources of the organization are adequate for its management, ascertain the extent to which the objectives of the organization are being achieved, determine the relationship between Ignorance of tax payers and the unwillingness to fulfill their tax obligation, determine the relationship between Ignorance of tax benefits and the unwillingness of tax payers to fulfill their tax obligation and evaluate the ethical validity and the basis of personal …
Can the material for “Assessment of Management Problems of Public Enterprises in Nigeria” be used as a guide for Public Administration (PA) Project?
Yes it can be used — This research study tries to assess the management problems of public enterprises, a case study of power holding company of Nigeria (PHCN). One of the major objectives of any government is a stable growth and development of the country through industrialization. One of the avenues through which this is achieved is by the establishment of public enterprises. PHCN, being public enterprises, the research has undertaken to investigate how much it has contributed to the general growth and development of Nigeria and also investigate any managerial problem. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. Primary data were collected from the primary source which questionnaire was used …
Can the material for “Factors Responsible for the Declining Standard of Secondary Education” be used as a guide for Arts Education Project?
Yes it can be used — The study was carried out to investigate the Factors Responsible for the Declining Standard of Secondary Education. In achieving this aim, the following specific objectives were laid out investigate the causes the decline in standard of performance in school certificate examination, examine how teaching experience affect the standard of education and determine the factors responsible for the decline in standard of education in Warri-South local government area. Investigation revealed that in adequate number of qualified teachers and professional teachers is responsible for the declining standard of education. Other factors are lack of proper guidance to the students by the concerned authority on the procedure of writing examination, in adequate of recommended text books, lack of school laboratories, and lack of …
Can the material for “The Role of Health on Economic Growth in Sub-Saharan Africa (1990-2011)” be used as a guide for Economics Project?
Yes it can be used — This study empirically examines the role of health on economic growth in Sub-Saharan Africa using a panel data from 1990 to 2011. The study employed a panel data analysis in which the random effects model was used to examine the relationships among variables. Each of the explanatory variables were tested for multicollinearity using the Variance Inflation Factor (VIF) which was not found among variables, and other tests such as the Hausman test which showed that the random effects model is the most preferred, the heteroskedasticity test which was also conducted using the Modified Wald test and found the presence of heteroskedasticity which was corrected in the model and the random effects test using the Breush-Pagan lagrange multiplier. The random effects …
Can the material for “Rights and Obligation of Parties Under the Contract of Carriage of Goods by Sea” be used as a guide for Law Project?
Yes it can be used — Transportation is an integral factor in international trade and the contract of carriage of goods by sea, forms part of the complex web of transactions witnessed at international trade. The purpose of this project is to illuminate the nature and the inherent features present in the contract of Carriage of Goods by Sea and to also highlight the rights as well as the duties owed by the parties. It also seeks to point the obligations the law imposes on the parties as well as the liabilities they would incur on the event of breach in this form of contract. …
Can the material for “Managing Diversity in Multinational Organization” be used as a guide for Business Administration and Management (BAM) Project?
Yes it can be used — This research examined Managing Diversity in Multinational Organization with special reference to Unilever Nigeria Plc. The research adopted survey research design. Data were gathered through primary source with the aid of a well-structured questionnaire. Simple random sampling technique was adopted in the selection of sample, this was used to eliminate biasness in the selection process of the respondents. Data garnered were presented on table using percentage and the formulated hypotheses were analysed with the used of Chi-square statistical method. The result of the analysis shows that there is no significant relationship between recruitment and diversity management. Also, Communication play effective role in managing diversity and there is a correlation between diversity management and organizational productivity Based on the conclusion of the analysis …
Can the material for “Online bus ticket reservation system with QR Code” be used as a guide for Computer Science Education Project?
Yes it can be used — A Bus ticket is a piece of paper or card giving the holder the right to travel on public transport. The aim of this study is to design and implement an Online Bus Ticket Reservation System with QR Code. In achieving this aim, the following specific objectives were laid out as follows to design and implement an application software that will enable passenger to check the availability of the bus ticket, check the time of departure and arrival for every Transnational’s bus online through the system and Update ticket retrieval and minimize the number of staff at the ticket box and the counter. The motivation that led to the implementation of the proposed system is that the existing system is …
Can the material for “Sales and Usage of Second Hand Clothing among Nigerians” be used as a guide for Sociology Project?
Yes it can be used — This study investigates the sales and usage of secondhand clothing in Alimosho local government area of Lagos State. Sales and usage of secondhand clothing is a major occupation, for which, Igbo people are famous. With the economic downturn, more Igbo people have taken to the sales of secondhand clothing. This study is carried out with duly valued questionnaires and indepth interview were used as instrument to collect primary data from 150 respondents from various market in Alimosho which are Kantagua. Igando, Ikotun and Egbeda market for statistical analysis. The results of data collected were analyzed and transcribed with Pearson’s Product moment correlations statistical tool to test the three (3) hypotheses formulated. The result of the three hypotheses tested indicated that: …
Can this topic “Mergers and Acquisitions in the Nigerian Banking Industry” be used for Banking and Finance (BF) Project?
Yes it can be utilized for research — The study was designed to examine mergers and acquisitions in Nigrerian banking industry. The need to carry out this study rose from the challenges faced by Nigerian banks despite the reduction of banks from the end of 31st December 25. These changes faced by banks in the country have made researchers to questioin the effeiciency of the consolidation of banks in Nigeria. The explorative research method was used for this study. Data was collected from jornals, textbooks, conference papers and the internet. The frindings reveals that the consolidation (mergers and acquisitions) activities in Nigerian did nto meet the desired objective of liquidity, capital adequate and corperate government, which resulted tomore troubled after the consolidation. On the basic of this, the study …
Can the material for “Human Resources and Students’ Academic Performance in Education” be used as a guide for Education Project?
Yes it can be used — This study investigated Human Resources and Students’ Academic Performance in Education District IV of Lagos State Senior Secondary Schools. Four research questions were answered and four hypotheses were tested in this study. The population for the research was made up of all the public senior secondary schools in Lagos State Education District IV, Lagos State. The simple random sampling technique was used to make the selection of ten public senior secondary schools. Twenty teachers from each school were randomly selected from the ten sampled public senior secondary schools in Education District IV, given a total of 200 teachers. The study used a descriptive survey research design with the use of questionnaire in the collection of data from the participants. The Data …