ABSTRACT
The goal of this study is to examine and assess the physical, social, and economic effects of Nigeria’s acturist analysis. In the development of an economy, reinsurance management is important. This explains how reinsurance policies are governed and traded all over the world, dating back to 1324 by the merchant. It also considers the possibility of limiting some basic problems and challenges that a state or company may face while deciding on a reinsurance policy. It also contributes to the development of reinsurance policies in Nigeria. It also connects a number of questions and answers, such as the role of reinsurance policies in an open market and other recapitalization exercises. It also weighs the benefits and drawbacks of insurance exercise in an open market. As a result, the methodology used here is made up of various components, including primary and secondary data collecting mechanics. It ensures that no proper long-term formulas hypothesis are created.
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Simply said, insurance is a method of sharing risk. This concept was first proposed in 1324 by merchants who were willing to share their travel risks in exchange for a premium. To begin, if cargo owners arrive safely, there will be no payment; however, if they do not, the insurer will pay the cargo owner double the amount of the premium.
The evolution of the concept resulted in an increase in the amount of business, rendering individual insurers uninsurable. Then there’s the concept of reinsurance. However, it should be remembered that insurance began as a personal service, but as the volume of business grew in the 1970s, some merchants began to specialize.
The mathematical analysis and management of reinsurance in the development of the economy form the foundation of this research. The size and structure of the reinsurance market will determine the risk retention levels within a given economy. Also inflation had a great effect on the demand and management of reinsurance, increase in the potential size of exposure endangered by inflation requires exams to the additional capacity from the reinsurance market. MANAGEMENT OF RE-INSURANCE
STATEMENT OF PROBLEM
In Nigeria, reinsurance practices are beset by issues such as the following:
a lack of a stable legal and regulatory framework
Unfavorable market conditions
a technologically deficient setting
Reinsurance businesses’ capitalization is insufficient in comparison to the extent of the risk exposures that need to be covered.
The scarcity of qualified underwriting and claims professionals.
In the reinsurance sector, there is a scarcity of statistical data on which to base premium rates.
OBJECTIVES OF THE STUDY
The following goals are defined for this research project.
1. Determine the reinsurance industry’s degree of qualified individuals.
2. To assess the performance of a Nigerian reinsurance company.
3. Determine the reinsurance industry’s contribution to Nigeria’s economic development.
4. To determine the function of the actuary in the growth of the Nigerian reinsurance industry.
5. Examine reinsurance as a cornerstone of Nigerian insurance business and practice.
RESEARCH QUESTIONS
1. What are the reinsurance industry’s effects of numerous Acts of Decree?
2. What is your assessment of the Nigerian reinsurance market in terms of development?
3. How can the quality of reinsurance companies’ services in Nigeria be assessed?
4. What role does the actuary play in the development of the reinsurance industry in Nigeria?
5. What are the ramifications of the Nigerian reinsurance industry’s recapitalization?
SIGNIFICANCE OF THE STUDY
The study will make entities including insurance firms, reinsurance businesses, the government, and the general public more aware of the situation and how to deal with it.
When these issues are resolved, the effectiveness of Nigeria’s reinsurance practice would increase. This work can be used by a government agent as a lawmaker to create rules and regulations that guide insurance companies. With these solutions, reinsurance will know how to deal with the industry’s problems. They can also use the findings of this study to influence and perform appropriate roles in economic development. This research may also aid in the country’s economic development. MANAGEMENT OF RE-INSURANCE
SCOPE AND LIMITATION OF THE STUDY
The goal of this study is to learn about the actuarial analysis of Nigerian reinsurance management in terms of economic development. The researcher will concentrate on obtaining information from the continental reinsurance companies in Lagos, Abuja, and Port Harcourt, but due to time constraints and other factors, the researcher will only focus on the continental reinsurance office at Okpara Avenue in Enugu State. MANAGEMENT OF RE-INSURANCE
As with every study project, there are various factors that limit the research, including:
1. Time: Time is man’s worst enemy, especially for workers and students who conduct research on the internet or in libraries.
2. Inadequate Data: Reinsurance is not widely practiced in Nigeria, and little research has been conducted in this field.
Money is number three.
DEFINITION OF TERMS
Reinsurance is the act of insuring a risk that has already been insured. It is the process through which a primary insurer, also known as the ceding company, transfers a portion of the business it has accepted to another insurer, known as the reinsurance company.
Actuarists are highly specialized mathematicians who have been trained in the risk aspect of insurance and are responsible for the calculations that go into determining proper insurance rates.
Underwriting is the process of evaluating a risk in order to determine whether to accept or deny it, and if so, at what premium conditions.
Reinsurance: This is the people that specialize in reinsurance business.
Ceding company: An insurance company that accepts direct risks from the public and reinsures all or part of the risk with a reinsurance company.
Guarantee: A reinsurance firm issues a document to a ceding company as proof of a complete and finding contract.
Treaty: A treaty is an agreement between the ceding company and the reinsured firm in which the original company or the ceding business agrees to cede and the reinsure agrees to accept all reinsure offered within the treaty’s available limits.
REFERENCE
Reinsurance for the Beginner, 2nd Edition, R.P. BeClerose, 1978.
Principles of Reinsurance, Cambridge Photo Publishing London, 1991. Carer, R.L.
Nigeria Reinsurance Corporation, Lagos, Nigeria Insurance Year Book 1988 and 1998.
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