Insurance Companies And Their Impact On Economic Development Of Nigeria

Insurance Companies And Their Impact On Economic Development Of Nigeria

Abstract

Business produce goods and services to satisfy the demand of guests. Muchas these businesses declare profit time- in- time- eschewal, they also face element of riskand misgivings that may causes losses. This includes fire, theft, damage byartificial or natural agents and so forth. The business men in the olden daysengage into profitable conditioning with pessimism and fear of incurring losses. Thisinhibits large scale product which is capital ferocious. still, with the adventof the insurance business, effects bettered for the between, as business menbecome encouraged to commit further of their coffers in product conditioning, knowing completely well that the insurer will repay item in the event of damage orloss. Simply put, insurance is a contract of utmost good faith in which the insurerwill pay compensation to a policy holder for loss or damage of insureditems.Meanwhile, the practice of insurance has come a economic business in itself, similar that it contributes tremendously to the public development in particulars ofemployment occasion provision as well as Gross Domestic Product( GDP) therefore, the interest of the exploration is aroused to carry out a study in this important, yet neglected sector of the frugality with a view of sensitizing the scholars, business men and the entire public of the benefits derivable from the insurancebusiness. The public policy makers shall be insinuated as to the areas that requirefurther regulations and or deregulations.6 The experimenter thus employed and secondary sources of data collection inorder to do justice to the content. Chi-square fashion of data analysis was used tofully digest the sourced information. This fashion is quantitative and its choicewas informed by its capability to give a pictorial view of the exploration findingsnumerically. also, NICON insurance company was the focus as a casestudy.The most important among the exploration findings include the lack of mindfulness oninsurance issues by the teaming Nigerian populations, minimum content of theindustry’s conditioning in similar important sector as health and husbandry, warrant ofadequate government as well as private sector participation in insurancebusiness, death of professionally good staff operating with the assiduity toboost the confidence of patronizers; vague and intricate functional mechanismand of course public dubitation about the sincerity of purpose with which theinsurance business is dispended, the experimenter, hence, proffered similar remedialrecommendations as infusion of deep sense of professionalism by interpreters inthe assiduity with a view to fostering public confidence, addition of insurancetraining in seminaries class right from secondary to post secondary institutionsas obligatory especially for wisdom scholars, patronized programmes on pointand electronic media outfits on insurance matters, increased governmentparticipation and deregulation of strict rules barring the engagement of privatesector into insurance business and over- frontal agreement of genuine claims as theyfall due.7 TABLE OF CONTENTSTitle iDeclaration iiCertification iiiAcknowledgement ivAbstract viTable of contents viiCHAPTER ONE preface1.1 Background of the study11.2 Statement of the problem21.3 Assumption of the study31.4 ideal of the study41.5 Significance of the study51.6 thesis of the study61.7 compass of the study61.8 Limitation of the study61.9 Plan of the study 7- 8Reference 9CHAPTER TWO LITERATURE REVIEW2.1 preface102.2 Insurance Companies and their Impact on theEconomic Development of Nigeria.102.3 Function of Insurance Companies.1282.4 The threat that can be ensured142.5 Types of Insurance172.6 The Nigerian Insurance request222.7 How Modern Insurance Works272.8 Abecedarian Principles of Insurance Lawand Practice282.9 significance of Insurance Companies in theNational Economy.322.10 Summary 34Reference 36CHAPTER THREE exploration METHODOLOGY3.1 preface373.2 Research Design373.3 Method of Data Collection383.4 Documentary383.5 Procedure for Data Collection393.6 Population of the Study393.7 system used in Analysing Data Collected403.8 Summary 41Reference 42CHAPTER FOUR DATA PRESENTATION AND ANALYSIS4.1 preface434.2 thesis Testing534.3 Five- Time Analysis of the Performance9of the Insurance Industry. 60Reference 63CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATION5.1 preface645.2 Summary645.3 Conclusion655.4 Recommendation675.5 Suggestion for farther Studies 70Reference 73BibliographyQuestionnaire10CHAPTER ONEBACKGROUND OF THE STUDYThe developments in our society have made living complex and parlous to lifeand parcels. This has come so great that the traditional styles ofassisting those affected by mischances in our societies are no longeradequate. thus, societies call for a more dependable and acceptable meansby which threat or any mischances can be covered in the future, and then liesthe significance of insurance which guard against pitfalls or lossesincurred byclients.Majority of the people in our society moment are moreover ignorant or have amisconception of what insurance entails, what part it plays or its usefulnessin the creation of trade and commerce. As a service assiduity insuranceplays a veritably important part in the profitable and social development of anation. In appreciation of this, the government has continued to take stepsto regulate the conditioning of the insurance business in order to jalopy a soundand effective insurancemarket.Insurance business is one of the subjects that have been securing thepublic in this country. numerous people outside the fringe of the businesshave looked at the institution with misprision and they’re simply suspicious of11the insurer and their styles of business. They claimed that insurer are onlyinterested in collecting decoration and hardly settle claims, whenever theyarise.1.2 STATEMENT OF THE PROBLEMThe insurance assiduity is one of the misrepresented or misunderstoodbusinesses in the world. This is substantially due to lack of knowledge on the partof the public concerning their conditioning. The degree of knowledge variesfrom century to century and is relative to the state of socio- economydevelopment in each individual country concerned, which may in turn begoverned by the position of the knowledge element of each community. In adeveloping frugality, problems associated with the misconception of theimpact of insurance aren’t as pronounced as in under developedcountries, includingNigeria.All attempts in developing a sound insurance assiduity have beenconfronted by request deformations, high rate of affectation, variousgovernmental regulations, unethical practices and fraudulent tendencies ofthe assuring public there are inviting. There are a many actions, which indicate that the Nigerian public, knowledgeable or else, know little ornothing about the operation of the insurance business.12 Accordingly, numerous questions have been asked. Should insurancecompanies brokers continue to exploit the general public as a result of theirignorance about the assiduity? Is there any need to control the business atall? What are the control measures? These are the questions, which shallbe address my tone within the essay together with same brief suggestions, and styles by which the loopholes discovered could becorrected.Therefore, this exploration work aims at pressing the colorful function orimportance of insurance assiduity to individualities and whole society ofNigeria.1.3 ideal OF THE STUDYOn a gadarene look at the insurance medium, it would be seen thatinsurance is a service rendering business. There are special socialcharacteristics of insurance that set it piecemeal from palpable goodsindustries.Being substantially a contract of reprisal and more so that insurance is acommodity, which people pay for in advance and whose benefits arereaped in thefuture.Furthermore, the ideal of the study is to throw further light on theactivities of the insurance with the view to arousing the mindfulness of thepolicyholders and prospective bones . This will be achieved by highlighting13the insurance medium, discovering the weak areas that need to bestrengthened and recommendations will be proffered for fartherstudy.Also the study is to punctuate the abecedarian principles of insurance, whichthe society has not been suitable to fete . This work is made in similar wayas to punctuate the need for insurance in our society. Taking all these intoconsideration, the following are the objects of this studyThe main ideal of this study is to outline the functions, places andcontribution of insurance companies to the development of thenationaleconomy.To identify if insurance companies are useful to our day- to-dayactivities.To ascertain if insurance companies actually perform their financialrolesdiligently.To suggest ways of perfecting the functions of the insurancecompanies.