PROBLEMS ENCOUNTERED BY INTERMEDIARIES IN THE NIGERIA INSURANCE INDUSTRY AND THE FUTURE PROSPECTS
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
the want for intermediaries in coverage marketplace in Nigeria is an difficulty which its critical can’t be over emphasized.
Research has proven that the issues encountered via way of means of the intermediaries has an effect at the boom of coverage degree in our society, there’s a extensive unfold of loss of what gain it’s miles to the society. Research has proven that there’s a great courting among the quantity to which one knows and the significance one attaches to coverage. The greater clean and comprehensible one unearths coverage to be and the much more likely it’s miles that the coverage intermediaries might be realize the significance of coverage earlier than the facilitators may be recognized. This indicates that low degree of literacy constitutes to the issues encountered via way of means of the coverage intermediaries. Because the intermediaries paintings for the coverage business enterprise, any hassle that impacts the business enterprise impacts them.
The revel in of a few individuals who had be dealings with coverage over time ha snot be very cordial such adverse courting were publicize over time that it has created a negative notion of coverage intermediaries and the coverage organizations to the overall public. Insurance have now no longer assist troubles via way of means of their reticent in publishing their activities. One needs to be aware about coverage earlier than one makes a aware attempt to recognize what it’s miles all approximately. The coverage enterprise has the obligation to create consciousness of the existences in their intermediaries and their enterprise withinside the minds of the general public.
Individual coverage organizations have the duty of letting the general public realize that its intermediaries exist and what capabilities they perform. Literature which include one of the roles of coverage organizations and intermediaries to people and the society in widespread must be broadly circulated.
Handling of coverage declare is any other vicinity have been coverage intermediaries stumble upon hassle. This is apparent due to the fact while an coverage business enterprise couldn’t settle her declare with the insured (policyholder) the effect fall at the intermediaries that facilitate contractual courting among the insured and the coverage business enterprise. This makes the overall public to name each the intermediaries and coverage organizations fraudsters. A properly coverage transaction lies basically on the benefit with which might be insurer declare cheque is received. Claims dealing with is one vicinity have been an powerful verbal exchange is necessary, in addition to achieving activate choice right now all statistics are acknowledged. The lack of ability of the coverage organizations to try this makes it tough for an middleman to assist his customers in finding out their declare with the business enterprise.
Location of the coverage business enterprise is also one of the issues encountered via way of means of intermediaries due to the fact they locate it tough to transact enterprise in rural vicinity. There isn’t anyt any assessment among an coverage business enterprise located withinside the town and that of rural vicinity. Insurance business enterprise located in a rural vicinity won’t be progressing due to the low degree of literacy of humans withinside the vicinity.
1.2 STATEMENT OF PROBLEM
The picture of coverage enterprise and their intermediaries is noting to put in writing domestic approximately. This is to people who do now no longer realize what coverage is all approximately. Having complied with the policies and rules of the coverage supervisory government wherein they operate, aleven though there are nevertheless issues withinside the coverage organizations and the amongst them are as follows.
(a) Ineffective publicity, loss of facts approximately exceptional training of coverage and advantages behinds every training of coverage to the policyholder is appearing as one of the issues being encountered via way of means of the coverage organizations and their intermediaries.
(b) Public unawareness of the essence of coverage takes time for the agents and retailers to be acknowledged withinside the public.
(c) One of the issues that insurance intermediaries face is the location of the insurance company.
(d) They have difficulty conducting business in a small area. For example, an insurance company with its headquarters in Ngwo will suffer significant losses while competitors in cities such as Lagos advance.
(e) Competition among brokers and agents using an unconventional method due to rate variations. These intermediaries have always been difficult. Another issue is that what affects insurance companies also affects them.
1.3 STUDY OBJECTIVE
The following goals are the focus of this research.
1. Determine the root causes of the problem that the intermediaries are experiencing.
2. The significance of intermediaries
3. Describe the role of insurance intermediaries.
4. Make recommendations on how to solve the problem.
1.4 THE STUDY’S SIGNIFICANCE
The study will be extremely useful to brokerage firms, insurance companies, the general public, and insurance and other related field students.
The work will be extremely useful to future researchers who conduct their own research into this topic.
The study will demonstrate the value of these intermediaries to the insurance company. After mentioning some of the jobs performed by the intermediaries, there are other areas in which they can help the company.
1.5 THE SCOPE AND LIMITATIONS OF THE SCOPE
Nigeria is the focus of this thesis. The research will look into the issues that intermediaries face.
LIMITATION
This research is restricted to brokers and agents in the Nigerian insurance industry. The researcher ran into some issues while carrying out this study, including the fact that the cost of transportation to the areas where data was to be collected was prohibitively expensive.
Another significant limitation of this study was the respondents’ attitude toward answering questions.
TIME
A research of this nature that is expected to produce results would have required more time to allow for in-depth personal observation, but because the paper has to be submitted within a certain time frame, I have to use as much time as possible.
FINANCE
The general issue for students is finance and the money required to travel to brokerage firms and agent offices on a regular basis to obtain information.
Aside from money, it was also necessary to type the questionnaire, distribute it, and collect it. Money was also weeded out in order to get to the final volume of work.
1.6 TERM DEFINITION
Brokers: Individuals who buy and sell on behalf of others. In addition, he is regarded as a professional expert. The gives people advice and recommendations.
Agent: A person who represents or manages the business affairs of another.
Premium: A small sum paid by the insured to the insurer in consideration of the risk insured, so that if a loss occurs, the insurer will return the insured to the same financial position he was in prior to the loss.
Insured: The party who is entitled to money under an assurance contract if a specified contingency occurs.
The state of being liable
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