The Impact Of Promotional Strategy On The Development Of Insurance In Nigeria

The Impact Of Promotional Strategy On The Development Of Insurance In Nigeria

Abstract

The purpose at this exploration is concerned on the impact of the government programs in regulating the conditioning of insurance companies operating in Nigeria. The government responsibility to supervise, regulate and control the conditioning of insurance companies and interposers is to cover the interest of the assuring public and to save them from exploitation by unreliable insurers. Because of the impalpable nature of insurance product, the government wants to make sure that those engaged in it must be competent person who’ll fulfil their pledge a d pledges when the need arise. Also because of the complexity of insurance business it’s necessary that the government regulate ********************** the policy holders. Also because of violation *********************** trust that occurs in insurance transistors, the government has set up it necessary to regulate insurance diligence so as to control similar violations. The design attempts to estimate the effectiveness of government programs in regulating the insurance companies in Nigeria. The insurance assiduity in Nigeria has acute deficit of high position of force for utmost classes of insurance, also numerous Nigerians suffer fiscal loss due to lack of knowledge in insurance. Due to this problem, government should introduce programs regarding to insurance to the public as to punctuate them on the benefit accrued to insurance due to constant fiscal loss they encounter as a result of lack of insurance knowledge.

Table Of Contents

Title runner

blessing runner

fidelity

Acknowledgement

Abstract

Table of content

CHAPTER ONE

preface

Background of the study

Statement of the problem

Purpose of the study

Significance of the study

compass of the study

description of the term

CHAPTER TWO

Literature review

The origin of the insurance assiduity

The development of ultramodern insurance in Nigeria

The insurance request and interposers

The socio- profitable significance of insurance

Structure and performance of the insurance assiduity

Government regulation of the insurance companies

The impact of structural adaptation programs on insurance companies operation in Nigeria

CHAPTAER THREE

exploration methodology

preface

Paraphrases of exploration question and thesis

exploration design

Sources of data

Population of study

Sample size/ Design and procedure

Data collection instrument/ process

Data donation and analysis on ways

Limitation of the methodology

CHAPTER FOUR

Data donation and Analysis

donation and analysis of data

thesis testing

Analysis of result

CHAPTER FIVE

Summary of finding, Recommendation and conclusion

Summary of findings

Recommendation

Suggestion for farther exploration

Conclusion

References

excursus

Questionnaires

CHAPTER ONE

BACKGROUND OF THE STUDY

“ threat is a miracle which has been in actuality since the morning of the world. threat exists whenever the future is unknown ”( Lemon 1989 17). This means that the word implies some element of mistrustfulness about future and the outgrowth may be worse than what it had been at the moment. This man in his diurnal operations could be viewed as a threat director, in that man does his stylish possible to reduce, exclude, avoid, retain or partake threat where they’re present.

Tough there were some forms of threat operation before the arrival of insurance companies in Nigeria similar as the extended family system, age grade association and others. insurance in its ultramodern form was introduced into Nigeria by British.

In 1921, the Royal Exchange Assurance Company was established and it was the first insurance company to open full branch in Nigeria. In 1949, three other companies surfaced. In 1958, Africa insurance company. By 1965, the number of insurance companies rose to 70. in 1977, the NigeriaRe-insurance company was established as a civil government possessed insurance company. Nigeria was still under the British social rule up to 1960 when she gained her political independence and as a developing country. From 1960 to date a lot of insurance companies came into operation. Insurance is a ultramodern system of sharing loss or spreading threat smoothly over a great number of people so that the many unfortunate bones o r persons who sustain or suffer loss don’t heavy fiscal loss as a result of their mischance to the community. the insured pay decoration into a common pool outgrowth of which the unfortunate many who suffer loss are compensated.

The secondary function of insurance companies includes

1. Provision of loans for erecting on the security of a life policy.

2. Encourage and promote marketable enterprise men and industrialist

The accumulated sum of plutocrat by insurer re invested to state approved securities and this helps to give the state with a steady inflow investment finances with which the state can give development and elevations to the original diligence which will be of benefit to the community.

Insurance is a contract whereby a person called the insurer or assurer agrees in consideration of plutocrat paid to him or her known as decoration by another person called the ensured or assured to compensate him against loss performing to him on the passing of certain events. still, it was known that threat live whenever the future is unknown and thus insurance live primarily to combat the adverse effect of threat.

The purpose of insurance is to compensate or compensate the victim for his fiscal loss. It should be noted then that the insurance neither exclude the loss nor stops the disaster from passing, what insurance does is to soften the blow in a purely fiscal sence by offering financial compensation to the victim whereby placing him in the same fiscal position after loss as he was ahead however within the terms of the policy.

Re-insurance is the transfer of insurance business from one insurance company ot another. The original insurer who gain the insurance contract form the ensured or assured is called the direct insurer or the ceding company. Re-insurance arose from the need of the original insurer to spread the threat he has accepted. Underre-insurance contract is between the ceding company programs. thus in the event of a loss, the ensured can not apply there-insurance contract.

still, the effect ofre-insurance contract on the ceding company includes

i Re- insurance reduces the probability of the ceding

company’s ruin by assuming his catastrophe threat.

ii Re- insurance stabilizes the ceding company’s balance distance by taking on piecemeal of his threat of arbitrary change threat of change and threat error.

iii Re- insurance increases the quantum of capital effectively available to the ceding company by freeing equity that was tied up to cover threat.

ivRe-insurance enlarges the ceding company’s underwriting capacity by accepting a commensurable share of pitfalls and by furnishing part of the necessary reserves.

The insurance section is made up of a large number of companies with varying sizes, among which the NAICOM was established. The government uses this commission to regulate the insurance assiduity. The government uses this commission to regulate the insurance assiduity. It was established in 1997 by NAICOM decree N0 1 of 1997. Prior to the establishment of National insurance commission, the insurance business regulation and supervision were done by the insurance department of the ministry of finance.

The public insurance administrative board( NISB) was established in 1991 to take over the supervision of insurance form the director of insurance. National insurance commission( NAICOM) is the head by the commission finance and administration and deputy director for insurance specialized.

NAICOM Decree 1 of 1997 stated the functions of NAICOM as follows

1 To insure eh effective administration, supervision regulation and control of insurance business in Nigeria.

2 Establishment of norms of the conduct of insurance business in Nigeria.

3 blessing of rate insurance decoration to be paid of all classes of insurance business.

4 Regulation of deals between insurers and re- insurance in Nigeria and those outside Nigeria

5 icing acceptable protection of strategic government means and other parcels.

6 To act as counsel to the civil government on all insurance affiliated matter.

7 authorize norms, conditions and guaranties applicable to all classes of insurance business.

8 To cover insurance policy holders and heirs and third parties to insurance contract.

9 To publish for trade and distribution to he public, periodic reports and statistics on the re- insurance assiduity.

10 To liaise with and advise civil ministries, redundant clerical departments, statutory bodies and other government agencies on all matters relating to insurance contained in periodic specialized agreements to which Nigeria is signatory.

11 To contribute to the educational program of the chartered institute of Nigeria and the West African insurance institute.

12 To carry out similar other conditioning connected or incidental to its other functions under the rulings.

Statement Of The Problem

The insurance assiduity in Nigeria has acute deficit of high position force for utmost classes of insurance and re- insurance business. the Nigeria insurance assiduity doesn’t enjoy the needed public goodwill and reason for this has to do with the damage done to practice of the profession by the progeny rich entrepreneur who goes about the business of insurance with the little regard to the principle of the profession. As a result of this, the government has come up with so numerous programs aimed at the study however will save the insurance assiduity. The extent to which all those government programs affect insurance companies and provides result to insure the survival of these insurance companies is another thing. The exploration thus, is indicated to examine the impact of colorful control measures as announced by government to regulate the conditioning of the insurance assiduity.

Purpose Of The Study

The purpose of this exploration is essential in a direct disquisition on the impact of government programs on the insurance assiduity in Nigeria.

Ø To look into the factors hindering the performance of insurance companies through the colorful government nonsupervisory programs.

Ø To determine the impact of those government programs on the insurance companies and the assuring public

Ø Since the insurance assiduity is the second largest deposit rallying institution in the country, it thus encourages saving which plays an important part in the social and profitable well being of the country.

Ø To estimate the performance of the assiduity thus, is necessary for the growth of the frugality.

Significance Of The Study

i To enlighten the Nigerian crowd about the benefit that they could drive by taken up insurance cover.

ii To guide the policy makers when hey are making laws concerning insurance.

iii Ascertain the need or else for government intervention through nonsupervisory body in the insurance assiduity.

Compass Of The Study

i To determine the impact of government programs in regulating the conditioning of the Nigerian insurance assiduity.

ii The study thus will concentrate on the Nigeria insurance assiduity.

Description Of The Term

i INSURER/ ASSURER This is the insurance or assurance company that issue out policy to the policy holder.

ii INSURED/ ASSURED This are policy holders in the insurance business.

iii pitfall This is known as a high cause or what gives rise to the loss.

iv decoration This is periodic consideration payment by the policy holder to the insurance company which will bear compensation by the insurer to the ensured.

v POLICY This is a written contract of insurance which is issued to the policy holder.

viRE-INSURANCE This is an insurance companyre-insuring again a threat that had formerly been ensured to another insurance company.

vii CEDING COMPANY This is the direct insurer or the original insurer who’sre-insuring the threat to another insurer.

viii UNDERWRITING This is a process by which an insurance company determine rainfall or not on the base it’ll accept an operation for insurance.