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THE ROLE OF NATIONAL INSURANCE COMMISSION (NAICOM) IN THE PROMOTION OF NIGERIA INSURANCE MARKET OPPORTUNITY

ABSTRACT

The Nigerian insurance industry, like that of many other nations throughout the world, has a long way to go in terms of meeting the demands of regular citizens. In fact, insurance is still primarily reserved for the wealthy and the formally employed. The insurance market in this country has been challenged. The major issue is one of image, which the National Insurance Commission and other industry organisations, such as the Nigerian Insurance Association, are addressing head on. The insurance industry’s biggest difficulty is figuring out how to make insurance more comprehensive. The goal of this study is to look into the “role of the National Insurance Commission in promoting insurance market potential in Nigeria.”

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Insurance makes a substantial and limitless contribution to economic progress. Insurance is extremely important in today’s society, and the health of a country’s insurance sector is a key indicator of its economic success. Insurance promotes financial stability and anxiety reduction; it can be used to supplement government security programs; it facilitates trade and commerce; it mobilizes savings; it allows risk to be managed more efficiently; it encourages loss mitigation; and it fosters a more efficient capital allocation.

Citizens, the insurance business, the financial services sector, and the economy all benefit from the Nigerian insurance market. However, because the market is inefficient and lacking customer trust, experts believe the net consequence is that it does not grow and makes no significant contribution to macroeconomic indices.

Nonetheless, successive governments and regulators have made purposeful attempts to enhance the insurance market throughout the years, “one such effect being the market consolidation exercise that began in 2005 and culminated in an increase in the industry’s minimum capital requirements.”

The research focuses on the insurance industry market, its difficulties, and the role of the Nigerian National Insurance Commission in boosting the insurance market.

STATEMENT OF PROBLEM

1. A lack of regulatory compliance among insurance professionals and the general public.

2. Lack of new products and a negative image of the industry

3. Inconsistency in government policy and poor regulatory actions.

4. Intermediaries delay the settlement of real claims and the remittance of premiums.

OBJECTIVES OF THE STUDY

1. Determine the function of the National Insurance Commission in promoting the Nigerian insurance market.

2. To identify the issues and obstacles that obstruct effective and efficient insurance product marketing in Nigeria.

3. To assess the impact of recapitalization on market expansion and penetration in the insurance business.

4. To determine the insurance industry’s contribution to the Nigerian economy’s growth and development.

RESEARCH QUESTIONS

What are NAICOM’s responsibilities in the insurance industry?

What percentage of the marketing environment does the insurance business control?

What are the hurdles that the insurance business faces when it comes to promoting their product?

SIGNIFICANCE OF THE STUDY

The importance of this research is based on the stated goal. The goal of the research is to encourage the insurance business to engage in professional practice while also ensuring that the national insurance commission’s functions are defined as specified in the decree 997 that formed the commission.

The research work is also important to students because it will serve as a point of reference for those who want/desire to conduct research on a similar topic. Finally, the government and its agencies will benefit from this research work because the results will expose the opportunities that are yet untapped by the insurance industry in the economy due to inconsistencies in government policy.

SCOPE AND LIMITATION OF THE STUDY

The involvement of the National Insurance Commission (NAICON) in the promotion of Nigeria’s insurance market prospects was the subject of the study. The study looks into the functions of the National Insurance Commission, its authority, organizational structure, and the programs it has put in place to ensure that the federal government’s vision 20:2020 is realized.

The researcher faces a number of obstacles while conducting this research, ranging from a lack of money to denial of access to personal information and data.

Additionally, time inadequacy was one of the restrictions that the researcher had while conducting the investigation.

DEFINITION OF TERMS

A situation in which a party (referred to as the principle) appoints another (referred to as the agent) to act for him (the principal) in performing a task or tasks that the principal should perform but is unable to do due to circumstances.

A right of way over someone else’s land is known as an easement.

In an insurance contract, indemnity is a commitment by one party to compensate another for damages suffered by the other, typically through monetary payment, repair, replacement, or reinstatement.

Inertia Selling: When unrequested goods are supplied to potential clients on a sale-or-return basis, this is known as inertia selling.

Insurance is a legal contract in which one insurer agrees to pay a specific amount to another party, the insured, if a specific event occurs.

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