The Role Of National Insurance Commission (Naicom) In The Promotion Of Nigeria Insurance Market Opportunity

The Role Of National Insurance Commission (Naicom) In The Promotion Of Nigeria Insurance Market Opportunity

Abstract

The Nigerian insurance request, like that of so numerous other countries around the world, has a long way to go in serving the requirements of the ordinary people. Indeed, insurance is presently still veritably important for the elites and the formally employed. The insurance request then encountered challenges. The major is the issue of image, and this is being dived headlong by the public insurance commission and other bodies in the assiduity like the Nigerian insurance association. The biggest challenge of the insurance assiduity is how to consolidate insurance. The exploration work is design to examine the “ part of public insurance commission in the creation of insurance request openings in Nigeria ”. The work portray the problems associated with insurance request in Nigeria; among when are low position of nonsupervisory compliance by the insurance interpreters, absent of new product inventions, image problems, government inconsistency in policy expression and so on. The ideal of the study were also stated which are to identify the part of public insurance commission in the creation of Nigerian insurance request; to examine the impact of recapitalization on the insurance assiduity and to identify the problems hindering the smooth handling of insurance business in Nigeria. The exploration methodology and procedures at which the exploration was executed were examined

Chapter One

Preface

Background Of The Study

The donation of insurance to profitable growth is huge and unlimited. Insurance is of great significance to a ultramodern society and in fact, profitable growth is characterized by the soundness of a nations insurance request. Insurance promotes fiscal stability and reduces anxiety; it can substitute for government security programmes, facilitates trade and commerce; mobilizes saves; enables threat to be managed more efficiently; encourages loss mitigation and fosters a more effective capital allocation.

The Nigerian insurance request presents vast openings for citizens, the assiduity, the fiscal services sector and the frugality. But the request isn’t effective, lacks capacity of consumers trust, expert say the net effect is that it doesn’t grow and no meaningful donation to themacro-economic pointers.

The insurance gap in Nigeria is presently put at 94 percent which implies that lower tham 10 percent of Nigerians have any forms of insurance. The wide gap is attributable to public indolence and apathy. The insurance viscosity on the other hand is put at N 875,00, this means that Nigerians on the average spend les spend lower than N 1,000 annul on insurance presently, the total assiduity income is about N170 billion.

According to NAICOM, for the set target to be achieved, the insurance gap must be lowered to a minimum of 70 percent, with 2012 as the target data. Encyclopedically, the world insured decoration income from 2006- 2008 as presented by sigma publication shows that life insurance has contributed further decorations, an normal of58.86 percent thannon-life business an normal of41.14. still the reverse is the case in Nigeria which contributes17.90 percent for life as against82.10 percent fornon-life.

nonetheless conscious sweats were made by consecutive government and the regulation to ameliorate the insurance request over the times “ one of similar effect was the request connection exercise that started in 2005 climaxing in increase of assiduity’s minimal capital conditions.

With this the exploration concentrated on the insurance assiduity request the problems prospect and the part of the public insurance commission in promoting insurance request in Nigeria.

Statement Of Problem

1. Low position of nonsupervisory compliance by the insurance interpreters and the assuring public.

2. Absence of new products and poor image of the assiduity.

3. Government policy inconsistency and weak nonsupervisory measures.

4. Delayed agreement of genuine claims and detainments remittance of decoration by interposers.

Objects Of The Study

1. To ascertain the part of the public insurance commission ion promoting insurance request in Nigeria.

2. To identify the problem and challenges hindering effective and effective marketing of insurance product in Nigeria.

3. To examine the impact of recapitalization on the insurance assiduity with regard to request expansion and penetration.

4. To find out the donation of the insurance assiduity to the growth and development to the growth and development of the Nigerian frugality.

Exploration Questions

· What’s the functions of NAICOM in the insurance assiduity?

· What percent share have the insurance assiduity in the marketing terrain?

· What are the challenges facing the insurance assiduity in the marketing of their product?

Significance Of The Study

The significance of this study is bedded on the stated ideal. The exploration work is aimed at encouraging the insurance assiduity on engaging in professional practice and also insure that the public insurance commission identify their places as stated in the decree 997 which established the commission.

The exploration work is also of important to the scholars as it’ll serve as a point of reference to those of them who want/ desire that to carry out exploration on analogous content also the government and its agencies will be a donator of this exploration work as the outgrowth of it’ll expose the openings that are yet untapped by the insurance assiduity in the frugality because of government policy in thickness.

Compass And Limitations Of The Study

The exploration work covered the part of National Insurance Commission( NAICON) in the creation of Nigeria insurance request openings. The exploration examines the functions of the public insurance commission the power of the commission, organizational structure and the programmes put in place by the commission to insure the fruition of the civil government vision 202020.

In the course of carrying out this exploration work, the experimenter encounter some challenges ranging from deficit of finances, to denial of access to nonpublic information and data

Also, time inadequacy was also one of the constraints encountered by the experimenter in the course of carrying out the exploration work.

Description Of Terms

Agency A situation that arises when a party( called the star) appoints another( called the agent) to act for him( the star) in doing a thing or effects which the star should do, but which he may not, by reason of circumstance be disposed to do them.

Easement A right of way over another’s property.

Indemnity An agreement by one party to make good the losses suffering by another, usefully by payment of plutocrat, form, relief or reinstatement in an insurance contract.

Inertia Selling A form of dealing in which unrequested goods are transferred to a implicit guests on a trade- or- return base.

Insurance A legal contract in which an insurer promises to pay a specified quantum to another party, the ensured, if a particular indeed happens and the insured fiscal loss as a result.

request The demand for a particular product or services frequently measured by deals during a specified period.

Premium The consideration outstanding for a contract of insurance.

Promotion An exertion designed to boost the deals of a product or service. It includes, advertising, particular selling, trade creation and hype.

Rebates A reduction offered on the price of a good service, frequently one that’s paid back to the payer.

Solvency The fiscal countries of a person or company that’s suitable to pay all debts as they fall due.

Undervalued Policy An insurance policy for property that has a sum ensured shown for each item although the insurers don’t admit that this figure is factual value.