The Importance And Roles Of Insurance Industry In Nigeria Economy

The Importance And Roles Of Insurance Industry In Nigeria Economy

Abstract

The need for this exploration paper is partial fulfillment of the experimenter’s program in insurance and as a result of the need to know the significance and places of insurance assiduity in Nigeria frugality. This exploration has redounded in the experimenters going out of the study to bandy with people not engage in the field about their views as respects to the significance and places of insurance assiduity in frugality also to conduct interview with the insurance directors. This exploration has played a vital part in the study, the problems and prospect facing the significance and places of insurance assiduity in Nigeria frugality has been full bandied in this design. This exploration study is divided into five chapters, chapter one dealt with the preface and background of the study, statement of problem, ideal of the study, exploration question, significance of the study operation, etc. Chapter two bandied review of affiliated literature as they relate to the content of study. Chapter three dealt with an overview, chapter four dealt with the summary of findings and discussion while chapter five summoned the conclusion and recommendation on the exploration.

TABLE OF CONTENTS

Title runner i

blessing runner ii

fidelity iii

Acknowledgment iv

Abstract vi

Table of Contents vii

CHAPTER ONE

preface

Background of the study 1

Statement of problem 6

ideal of the study 7

exploration question 8

Significance of the study operation 8

compass and limitation of the study 9

description of terms 10

CHAPTER TWO

Review of Affiliated Literature 13

Detailed Meaning of Insurance 16

Types of Insurance 19

places and significance of Insurance Industry to

the Economy 24

Summary of Affiliated Literature 27

References 28

CHAPTER THREE

An Overview 29

Source of Data 29

Primary Data 29

Secondary Data 30

Population of the Study 30

Sample Size 30

Validity of the Instrument and trustability

of the Instrument 32

CHAPTER FOUR

Summary of findings and Discussion 33

Summary of Findings 33

Discussion 34

CHAPTER FIVE

Conclusion and Recommendation 36

Conclusion 36

Recommendations 37

Bibliography 39

Excursus 40

Questionnaire 41

Chapter One

Preface

Background Of The Study

Insurance assiduity is a veritably vital aspect of Nigeria frugality and its significance and places can’t be overemphasized. In this design work the experimenter want to identify the history of insurance assiduity in the Nigeria frugality and also the factual places and the significance of insurance assiduity to the common man and the society at large. similar places significance include in every sector of the frugality, like, the banking sector, Agricultural/ Sector, aeronautics sector, Business sectoretc. the exploration work also treated the types of insurance assiduity in Nigeria, then the experimenter compared it with the types operated overseas and the system used to the standard. Also the design work, concentrated on the problem encountered by the assiduity and all the necessary measures that can be used to ameliorate Nigeria insurance up to the worlds standard.

The development of insurance assiduity, in Nigeria has passed through three distinguishable phase; the original frequently door phase, roughly between 1990 and 1960, the transitional phase which concludes with the first public development plan period, 1962 – 1969 and the take off phase( 1990 to the present times) substantiation the toughening of the frame of government regulation and represent a radical change in governments station towards the control the assiduity, there was when the insurance request were dominated with European compaine who monopolies the insurance assiduity, during this early period, a number of factors didn’t insure an active request. profitable exertion is at low position, there was no insurance knowledge by the crowd, due to non – actuality of some legislation, like that of motor vehicle and other effects, it made Nigeria request to grow in a low peace and also the third world war hindered the growth of the request.

After the war, Nigeria endured a lot of enhancement, and after that was the preface of worker’s compensation act 1940 and the road business act 1945 which came into force on 1st April 1950. Due to the increase in insurance assiduity in Nigeria.

This was after Nigeria had their, independent there was a rapid-fire increase in the number of company established and an increase in insurance assiduity and some of the foreign companies were turned to indigenous companies. The first step was to regulate the operations of the insurance companies to insure a sound and effectiveness insurance request, which would not only discharge its duties to members of the assuring public but would constitute the solid foundation for unborn growth and development. It was also discovered that some of the insurance companies aren’t investing in Nigeria, because there was no provision in the law. This leads to the Act of 1964 which states that any insurer should invest Two – Fifth its decoration in Nigeria.

As Nigeria insurance assiduity increase; it was discovered that it’s operated by some in experience people, and led to problem and the government arrested the situation by appointing.

Karl Reichel in October 1996 a united Nations expert the most far reaching action of government, which improves insurance business in Nigeria was the establishment of the National insurance pot of Nigeria( NICON) in 1 July, 1969. In June 1970 the Post of the supervisor and deputy supper governance was credited. This phase experience increase in relinquishment of direct medium, a charging situation which was the ineluctable result of the growing belief that effective control of the frugality must inescapably negotiate the achievement of political independence.

This was where all the problems and weakness in the former stages was corrected, and the government had control or exclusive public power of veritably strategic diligence. The policy of the civil military government to share in a number of crucial diligence was formulated and enforced. They set up their possessed enterprises. The government also helped in the creation supervision and control of insurance assiduity in other to cover the investing public.

One of the recent developments is the creation of reinsurance, which was substantially operated by Europeans and others and also the lunch of the National health insurance Scheme( NHIS) by chairman Olusegun Obasanjo( GCFR on 29th May 2005). The present stage has therefore displayed the features of the “ take of phase ”, the request is greatly boosted by legislative provision for mandatory insurance, set possessed diligence dot the artificial chart of the company, again with the circular effect of boosting the insurance business new legislation is passed with a view to indulgencing the insurance assiduity and furnishing a strong fiscal base for the companies and icing a high standard of insurance practice in Nigeria.

Statement Of Problem

In this section the experimenter concentrated on the frequence problem that has led to the insurance diligence in Nigeria not performing so well. These problems militating against the insurance diligence places in Nigeria frugality are as follows-

1. Ignorance in the part of the members of the public

2. To a certain extent, lack of expert in the field.

3. Poor architectures and information technology

4. Limited number of insurance company with a maximum capacity to sustain heavy loses.

5. Lack of information

6. Non – compliance/ exposure of accoutrements fact by the subscribing public to the insurance company.

7. Poor operation of being insurance assiduity

8. Poor liquidity in the some insurance diligence.

Ideal Of The Study

The objects that made the experimenter to go into this content are as follows

To find out the major places and significance of insurance assiduity in Nigeria frugality.

ii. To find out a way to increase the places to the standard in the world moment.

iii. To find out if there are possible approach, which can be used to exclude the poor standard of insurance services in Nigeria.

iv. To bring to the knowledge of the public the significance of insurance assiduity in the frugality.

To make suggestion and recommendations that could be useful in working the linked problems.

Exploration Question

1. What are the significance of insurance assiduity in Nigeria frugality

2. Do insurance company give claim agreement in agreement with the law and terms of applicable insurance policy?

3. What places do insurance company play in the Nigeria frugality?

Significance Of The Study Operation

This study is meant to punctuate the significance and places of insurance assiduity in Nigeria frugality. Insurance not only helps in reducing the burden on the public but reducing claims change. Insurance assiduity plays a vital part in Nigeria frugality by instigation to the nation profitable of the country.

The egregious donation to the nation frugality well- being in area of Job openings, source of finance for government, public and private sector of the frugality makes the study of consummate significance.

Compass And Limitation Of The Study

In a study of this nature, one would like to gather accumulate data from numerous areas, and due to the significance of insurance assiduity in Nigeria frugality. The experimenter choice to consider the run down of the places and significance of the assiduity to the whole frugality in the country. thus, the compass of the study is limited to south East of the country.

Besides, there were numerous other problems regulated up during the exploration work in which some of them are as follows

Time Constant

The time at any disposal as a pupil to carry out this content is extremely short, couple with other academic commitments.

ii.