The Growth And Contribution Of Life Assurance Business In Nigeria

The Growth And Contribution Of Life Assurance Business In Nigeria

ABSTRACT

In this study, the researcher looked at the development and contribution of the Nigerian life insurance industry. Primary and secondary data gathering approaches were used to gather the study’s information. A questionnaire was utilized to collect the primary data, and existing literature that was pertinent to the subject was consulted to get the secondary data. The Taro Yamani formula was used to calculate the sample size, the percentage technique was utilized to analyze the data, and the Chi-square statistical approach was employed to evaluate the proposed hypothesis. The researcher discovered that while Enugu’s life insurance firms specialize in the industry, customer support is lacking. Brokers, agents, and salespeople who work part-time are employed by life insurance companies to promote their policies to potential customers. Based on the research’s conclusions, the researcher suggested that the government create insurance education centers that would plan lectures, seminars, educational conferences, and study sessions for the benefit of the general population.

TEXT OF THE CHAPTER

Page 1 of the title

Page two of the approval document

Dedication iii

acknowledgment iv

Abstract v

Table of Contents, page vi

CHAPITER 1

INTRODUCTION

Background of the Study

A statement of the problem is provided in section 1.2.

1.3 Study’s Goal 5

1.4 Research Issues 6

1.5 Research Hypothesis 6

1.6 Importance of the Study 8

1.7 The Study’s Scope and Limitations 8

1.8 Operational Terms Definition 9

APARTMENT TWO

A REVIEW OF RELATED WORKS

2.1 The idea of life insurance 12

There are 2.2 different categories of life insurance policies.

2.3 The value and contribution of the life insurance industry

Nigeria’s economy 26

2.4 Elements influencing the development and Contributions of

life insurance industry in 31

2.5 Possibilities for efficient life insurance marketing

Nigerian business 35

2.6 Various life insurance marketing strategies

items made in Nigeria 39

2.7 Techniques for promoting life insurance products

African nation of Nigeria

The expansion of life insurance in Nigeria in the future

Reference46

SECTION THREE

DESIGN AND RESEARCH METHODOLOGY

3.1 An Overview 48

3.2 Data Source 48

3.2.1 Primary data 48

3.2.2 Secondary data 49

50 people make up the study’s population (see section 3.3).

Sample size requirements and sampling methods 51

3.5 Validity and Reliability of the Instrument

3.6 Presentation and analysis methods for the data 54

CHAPITER IV

Analysis of the data presented, discussion of the results

4.1 A description 56

4.2 Data presentation 56

4.3 Data Analysis 59

Testing of Hypothesis, Section 4.4

4.5 Discussion of the Results 74

CHAPITER 5

ANALYSIS OF RESULTS, CONCLUSION, AND RECOMMENDATIONS.

5.1 Findings Summary

5.2 Conclusions 77

5.3 Recommendations 78

5.4 Ideas for Additional Research 82

Bibliography 83

Appendix I, page 85

Appendix II 86

Chapiter 1

Introduction

1.1 The Study’s Background

The history of life assurance dates all the way back to 1983. The first proof of life assurance that is currently known to us dates back to this year. On June 18, 1985, a $382 policy was purchased on the life of William Gibbons. The agreement said that the money would be paid if Gibbons passed away during the first 12 months. He actually passed away on May 8, 1984. The money was given after a little disagreement over whether “twelve months” referred to twelve calendar months (Nwite, 2007).

According to Olufawo (2005), “today, thousands of life insurance policies are being sold in Nigeria in the forms of whole life insurance, endowment insurance, term insurance, joint life insurance, etc. It’s interesting to note that the life insurance industry in developed nations has overtaken all other investment opportunities because it even encourages saving.

According to Lerhari and Wesis (1974), the benefit for the policy owner is “peace of mind” because they know that the insured’s passing won’t put their loved ones and creditors in financial straits. Payments from life insurance policies may be made as a supplement to retirement payments.

In Nigeria, insurers handled the pension business for many years before a group persuaded the government to adopt the idea of a contributory pension scheme. The old state pension scheme collapsed because pensioners could not receive their pensions (benefits) despite waiting in line for days.

The Nigeria Social Insurance Trust Fund Act of 1993 was amended as a result of the repeal of the 1979 Old Pension Act to create the 2004 New Pension Reform Act. A decade after the N164.5 billion premium reported in the Nigerian insurance business in 2008, the pension fund has risen significantly and now exceeds N1.6 trillion (Fola, 2012).

The sector has a chance to benefit from some of the statutory measures that are scheduled for enforcement under the current system. The workmen’s compensation Decree of 1987 offered coverage for worker death, accident, sickness, or permanent or partial disability arising out of their workplace. “Employers shall maintain life assurance policies in favor of their employees for a minimum of three times annual total enrolment of the employee, under the group life scheme,” according to Section 9(3) of the Act.

According to Aneke (2007), the 2004 Pension Reform Act gave life insurers more authority, but how much of the fund they receive relies on how well they can gain the trust of the country’s sizable populace. The largest life insurance market on the continent is in Nigeria. He believed that if the nation’s life assurance industry was well-positioned, it might take the lead on the continent.

This research study will therefore examine the development and contributions of the life insurance industry in Nigeria against this background.

Statement Of The Problem

The formulation of this study work was prompted by the following issues;

A. Subpar insurance plans created by underwriters could not address the present shift in society toward individual needs satisfaction.

b. Nigeria’s growth of life insurance plans has been impacted by the country’s high percentage of poverty, which has led to a lack of individual interest or concern.

c. The marketing of the life insurance industry has been more severely impacted by the low demand for life insurance products.

d. According to studies, one of the main issues impeding the expansion of Nigeria’s life insurance industry is the country’s high percentage of illiteracy.

1.3 PURPOSE OF THE STUDY

The primary goal of this study is to investigate the development and contributions of the life assurance industry in Nigeria. The following are some of the specific goals of this research project:

a. To investigate the implications of subpar policies on the growth of the life insurance industry in Nigeria.

b. To determine how much the nation’s extreme poverty influences people’s decisions to use life insurance companies.

b. To investigate the impact of the lack of demand for life insurance products marketing for the life insurance industry

d. To investigate how illiteracy affects the expansion and development of Nigeria’s life insurance industry.

1.4 Questions For Research

What impact do subpar policies have on the growth of the life insurance industry in Nigeria?