The main goal of this study is to look at the historical background of the Nigerian insurance industry, with a focus on the development of modern insurance in Nigeria, the role and performance of the insurance industry, as well as the clarification of insurance business in Nigeria, and to see if the growth of the insurance industry has been in line with the country’s social and economic development. Examining the breadth and structure of the insurance business in relation to how it may affect the country’s growth and development. The research study is broken into five chapters, with the first chapter dealing with the study’s background, statement of the problems, objective, research questions, significance, scope, and constraints.
BACKGROUND OF THE STUDY
In Nigeria, insurance was introduced by British merchants. There were also existing traditional risk sharing systems before that, described as primitive terms of natural and social insurance programs. The age grade associations, or claim unions, were mutual insurance-like programs for giving charity to their members who had suffered a catastrophe, such as death, illness, or fire devastation.
In the nineteenth century, a British businessman introduced insurance to Nigeria. Modern insurance structures have a lot of legal ramifications, which has resulted in an expressly and established legal relationship that has turned out to be insurance control. Falegae J.I. (1991) defined insurance as a contract between two parties in which one of the parties, the insurer, agrees to indemnify the other, the insured, in the event of a loss.
More crucially, insurance contracts are controlled by general contract rules. However, due to their unique character, all insurance contracts are also bound by the fundamental principles of greatest good faith, subrogation, and proximate causation. The validity of an insurance contract is based on three essential concepts.
To begin with, insurance was done on an ad hoc basis, usually through mutual or friendly assistance, with the only purpose of safeguarding their members from the insured danger. The terms, conditions, and premiums were set in such a way that the insurance funds merely covered their expenses.
STATEMENT OF PROBLEM
The following are some of the issues that prompted this research:-
The insurance industry’s reputation has been tarnished throughout the years as a result of bad claim settlement.
After decades of operations, the influence of the insurance industry in the Nigerian capital market as a capitalist in the country’s economic development has yet to be felt.
In the insurance industry, there is still a lot of room for improvement.
OBJECTIVES OF THE STUDY
Examine the Nigerian insurance sector’s historical history, with a focus on the creation of the current insurance industry in Nigeria.
Determine whether the insurance industry’s function and growth have been commensurate with the country’s socio-economic development.
Examine the breadth and importance of the insurance business as it relates to the country’s growth and development.
To propose recommendations for enhancing and fostering the future development of the insurance industry in Nigeria, as well as assuring its stronger effect on the national economy.
The acceptance of risk for insurance purposes evolved into current insurance systems in Nigeria, which are operated by limited liability insurance corporations. The goal of this research is to assess
The following research questions have been created for the aim of this study.
Is the Nigerian insurance industry large in terms of volume of business?
Is the insurance industry’s contribution to the country’s economic development significant?
Is insurance currently contributing fairly to the economy’s growth?
Has the growth of the insurance industry in Nigeria aided the country’s economic development?
Is it possible for insurance firms to pay disputes now with ease?
SIGNIFICANCE OF THE STUDY
The following are some of the benefits of this research:
Students: The project work will serve as a resource for current and future students who wish to conduct additional research on the subject.
Stakeholders: Stakeholders will profit from this work in the sense that if the recommendations given at the conclusion of this research are implemented, everyone involved will be pleased.
Companies that provide insurance: The analysis will be useful in interpreting insurance performance, as well as its functions and growth in Nigeria.
Government: It will serve as a means of generating future experience in the insurance business by exposing areas in which collective actions are required, either for the country as a whole or to save the industry.
SCOPE AND LIMITATION OF THE STUDY
This study examines the role, performance, and growth of the insurance industry in the country’s economic development on a broad scale (Nigeria).
Because of the limited time allotted for completion of this job and due to financial constraints, the researcher had difficulty going to numerous locations to acquire data to supplement what was already available. Another drawback is that there is insufficient literature on the issue.
A problem similar to this was the lack of updated data on the insurance industry’s operations. As a result, the work had to be completed using only what was available.
Another issue that has arisen is the respondents’ inadequate reaction.
DEFINITION OF TERMS
1. Contracting Capacity: This indicates that both parties must have the ability to contract.
2. Claims: A claim is a payment made by an insurance company to a policyholder who has experienced a loss.
3. Economic Growth: This refers to a country’s real output of goods and services increasing over time.
4. Investment: This refers to restoring the insured’s financial situation prior to the loss.
5. Indemnity: This refers to restoring the insured’s financial condition prior to the loss.
6. Intermediary: This term refers to the middlemen who connect people seeking insurance coverage with insurers.
7. Material Fact: Information that could sway the judgment of a sensible underwriter when evaluating a risk.