Limitations To The Development Of Insurance In Nigeria
Abstract
Regulation of Nigeria’s insurance assiduity has come mainly boosted in the last two decades. This paper critically evaluates the gospel and challenges of insurance regulation in the environment ofpost-authoritarian governance and adding profitable liberalization in Africa’s implicit largest insurance request. The last two decades has witnessed among others, government nonsupervisory intervention through the establishment of a controller and obligatory recapitalization. Temporally, the line of developments in the last decade which coincides withpost-authoritarian military rule in the country is significant. As a developing frugality, the Nigerian insurance assiduity presents an illustration of untapped and gross under- application of its bottomless capabilities. espousing a qualitative approach, this paper explores the factors responsible for the assiduity’s slow growth in comparison with its huge mortal and material coffers and what assignments might be learnt to chart a way forward. The information for the study was collected using primary and secondary styles of data collection. For the primary data collection, questionnaires, particular compliances and oral interviews were used while being literature applicable to the content was consulted for the secondary data. The experimenter used ki-square statistical model to dissect the data. Three major findings were made The study also revealed the effect the development will have in insurance, illustration guarding the retired account furnishing lesser acceptance capacity and reducing possible fiscal stain. The study also shows how the insurance companies negotiate for their make use ofbrokers.Recommendation are there should be need for insurance companies to intensity their request, rather also gladden themselves with further trade of their product. The insurance company should try as important as possible to produce demand for their service in evolving now policy lives. The insurance company as well cognizance must be taken care of air socio culture terrain.
TABLE OF CONTENTS
Title runner i
blessing runner ii
fidelity iii
Acknowledgment iv
Abstract v
CHAPTER ONE
preface
Background of the study 1
Statement of problem 4
ideal of the study 5
exploration question 6
exploration thesis 6
Significance of the study 7
compass and Limitation of the study 8
description of terms 10
References 12
CHAPTER TWO
REVIEW OF RELATED LITERATURE
An overview 13
History of Insurance in Nigeria 13
Traditional insurance system 14
ultramodern insurance 15
History of NICON Insurance company 16
The effect of insurance business on profitable development in Nigeria 20
benefactions of insurance to growth and development
of Nigeria 26
part of insurance in profitable growth 30
significance of insurance 35
How insurance can guaranty once unborn 40
problems of Nigerian insurance sector 43
challenges and prospects of insurance business 46
References 55
CHAPTER THREE
exploration METHODOLOGY AND DESIGN
Research Design 56
Sources of data 56
Primary data 56
Secondary data 57
Population of the study 58
Sample size and slice ways 59
Instrument in determining sample size 60
Validity and trustability of instrument used 61
system of data donation and analysis 62
References 65
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
An overview 66
Data donation 66
Data analysis 67
Testing of thesis 74
Discussion of findings 84
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
Summary findings 86
Conclusion 88
Recommendations 89
Suggestion for farther studies 90
Bibliography 91
excursus 92
Questionnaire 93
Chapter One
Preface
Background Of The Study
Regulation of Nigeria’s insurance assiduity has come mainly boosted in the last two decades. This paper critically evaluates the gospel and challenges of insurance regulation in the environment ofpost-authoritarian governance and adding profitable liberalization in Africa’s implicit largest insurance request. The last two decades has witnessed among others, government nonsupervisory intervention through the establishment of a controller and obligatory recapitalization.
Temporally, the line of developments in the last decade which coincides withpost-authoritarian military rule in the country is significant. As a developing frugality, the Nigerian insurance assiduity presents an illustration of untapped and gross under- application of its bottomless capabilities. espousing a qualitative approach, this paper explores the factors responsible for the assiduity’s slow growth in comparison with its huge mortal and material coffers and what assignments might be learnt to chart a way forward.
The first part of the paper traces the origin of insurance in the country to its social heritage. The alternate part examines the explanation for regulating insurance business. The focus also shifts to regulation of insurance in Nigeria. The paper is yet to be concluded as there are outstanding issues for analysis in on which exploration is still in progress.
Nigeria, a country of further than 140 million people with a mainland of about 923,768.64sq. km and immense mortal and material coffers is a former British colony. Hence, the country shares nearly all its political and profitable settings from its former social heritage. Before the preface of the ultramodern form of insurance, some form of social insurance had was in the Nigerian society. These social schemes evolved through the actuality of extended family system and social associations similar as age grades and other unions( Osoka, 2008). Until 1966, Nigeria copied British administrative system of government. This British system still dominates aspects of the country’s socio- profitable settings. For case, the legal practices in Nigeria still reflect its social heritage. profitable institutions similar banks and insurance companies, in practice, copy the British style of conducting their businesses.2 still, the country’s progress since independence in 1960, has still been undermined by long times of military rule, political insecurity and systemic corruption. In 1999, a mercenary government was eventually tagged to office after a successful political transition process.
The development of insurance are intertwined with the arrival of British trading companies in the region and the posterior increasedinter-regional trade. Increased trade and commerce led to increased conditioning in shipping and banking, and it soon came necessary for some of the foreign enterprises to handle some of their pitfalls locally( Uche and Chikeleze, 2001). Trading companies were thus latterly granted insurance agency licences by foreign insurance companies. similar licences made it possible for similar enterprises to issue covers and help in claimssupervision.
The first of similar agency in Nigeria came into force in 1918 when the Africa and East Trade Companies introduced the Royal Exchange Assurance Agency. Other agencies included Patterson Zochonis( PZ) Liverpool, London and Globe, BEWAC’s Legal and General Assurance and the Law Union and Rock( Osoka, 2008). There was an original slow pace of the growth of the insurance assiduity in the country, particularly between 1921 and 1949. This has been traced to adverse effect of the World War II on trading conditioning both in United Kingdom and Nigeria. As soon as the war ended, business conditioning gradationally picked up again, and insurance assiduity in Nigeria began to record remarkable enhancement in growth. It wasn’t until 1958 that the first indigenous insurance company, the African Insurance Company Limited, was established( Nigeria Re, 1993). At independence, only four of the also 25 enterprises in actuality were indigenous.
Statement Of Problem
The problem militating against the development of insurance in Nigeria are
shy exposure about insurance and its benefits in the pastoral communities One of the foremost and the most flexible problems the insurance assiduity, and the broking enterprises in particular has been contending with and will continue to contend with is the problem of ignorance as the benefits of insurance products. numerous don’t know what insurance is each about; indeed the educated bones .
Some believe insurance is a smart way of exacting plutocrat from the people. The problems created by some dubious interpreters who’ll collect decoration without remitting same to the applicable diggings don’t help matters moreover.
Poor knowledge of the benefits of insurance by Nigerians It’s believed that insurance interpreters, especially the brokers will still need to do more in this area, especially in educating the public on the multitudinous benefits of insurance products and how similar benefits can be exercised. likewise, as a result of the patient political and profitable heads, we’ve been unfit to educate the public about what they stand to gain from insurance.
Poor station of Nigerian towards insurance business in Nigeria
Hence the old station towards the insurance that was grounded on ignorance keeps rearing its unattractive head against the growth of the assiduity, especially the broking subsector.
Ideal Of The Study
The end of this exploration work is to examine the limitations to the development of insurance in Nigeria.
The specific objects of this exploration work are to
1. To find out how insurance cover are vended to the consumers.
2. To examine the extent of development of insurance in Nigeria
3. To find out the factors militating against the development of insurance in Nigeria.
4. And also proffer results to the problems identifies.
Exploration Questions
The following exploration questions were formulated by the experimenter
How is insurance covers vended to the consumers in Nigeria?
What’s the part of insurance policy in the development of Nigeria?
What’s the extent of development of insurance in Nigeria?
What are the factors militating against the development of insurance in Nigeria?
How the problems militating against the development of insurance in Nigeria be answered?
Exploration Thesis
The following are the thesis formulated by the experimenter in this exploration work
Thesis One
Ho Insurance covers isn’t vended extravagantly to the consumers in Nigeria.
H1 Insurance covers is vended veritably precious to the consumers in Nigeria.
Thesis Two
H0 Insurance don’t have any part to play in the development of Nigeria.
H1 Insurance has significant part to play in the development of Nigeria.
Thesis Three
H0 insurance has no significant growth in Nigeria
H1 Insurance has significantly grow in Nigeria.
Thesis Four
H0 there’s no problem militating against the development of insurance in Nigeria.
H1 there are so numerous problems militating against the development of insurance in Nigeria.
Significance Of The Study
This exploration work will be of immense help to
The pupil it’ll help the experimenter to know more on the factor militating against the development of insurance in Nigeria.
The Stake holders this study will be of great significance to stake holders as it’ll enrich their knowledge on the goods of this problems on investment.
Insurance company this will inversely be of help to the insurance companies and fiscal institutions in Nigeria because when they abide by the recommendations handed by the experimenter it’ll help them in time of fiscal extremity.
The country at large this study will be of great significance to the country Nigeria as it’ll help the policy makers to prorogate laws that will guide insurance contracts in Nigeria.
Compass And Limitation Of The Study
The area of this exploration work is Enugu megalopolis were the NICON insurance is positioned and the study is on the limitations to the development of insurance in Nigeria.
The experimenter in carrying out this study encountered multitudinous problems, which includes
i) Fund.
ii) Time.
iii) Lack of exploration accoutrements
iv) Responds of the repliers
i) FUND – This included lack of enough fund to move around and visit the colorful areas in the state, and also lack of plutocrat to buy enough exploration material which constitutes on manacle of to experimenters high cost of transportation in the megacity due to long distance also assessed its own limitation on the experimenter.
ii) TIME – Time is
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