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The goal of this project is to uncover the reasons why contemporary insurance is unpopular in Nigeria’s eastern states, using Enugu as a case study.

Insurance is critical to the economy, but the eastern portions of the country are still unaware of its importance. The first chapter of this work will cover the introduction to the study, the backdrop to the study, the statement of difficulties, the purpose of the study, the limitations of the investigation, and the definition of terms.

Chapter 2 reviews the literature and elucidates the reasons for modern insurance’s unpopularity in Eastern State.




According to legend, every country’s firewood cooks their food. This proverb holds true for insurance, which began in a variety of methods in various countries. However, the rise of science and technology during the industrial revolution has led to individuals seeking better and more efficient ways of doing things.

Some of these early kinds of insurance, such as bottomry or responder a bonds, trade guilds, sharing of products among many vessels going down the Yuantez River, issuance, social clubs, Town unions, and communal self-help programs, have evolved into contemporary insurance.


The granting of a loan on the security of a vessel with the knowledge that the loan would not be repaid if the vessel did not survive the voyage was known as a bottomry bond.

Modern insurance, as a risk management tool, is critical to man’s economic well-being. It is also endemic in any community, as man has been focusing his attention on ways to improve the financial consequences of disasters since the dawn of time.

There was no organized insurance business as we know it now before the advent of the British merchant Nigerian. There were some classic risk-sharking methods in place, such as rudimentary or primitive mutual and social insurance programs. The extended family system, age grade associations, town or clan unions were all mutual insurance schemes for providing compassion to their members who had suffered disasters like death or disease. Whether it’s a fire or a court case, there’s always something to worry about.

Both the extended family structure and clan unions still exist in Nigeria today, but an organized insurance system has taken over the majority of their insurance activities. In the late nineteenth century, it was British merchants who built commercial posts on Africa’s west coast who introduced modern insurance to Nigeria. On the London insurance market, they arranged insurance for their trade enterprises. At least two insurance companies were known to have appointed agents in Nigeria as early as the 1900s.

In 1921, the Royal Exchange Assurance Company appointed a resident official in Lagos. As a result, they were the first insurance company to start a full-fledged insurance operation in Nigeria, which lasted until three other British insurance companies were established.

The state of Nigeria’s insurance industry should essentially reflect the state of the country’s economy.

The degree to which students are aware of insurance is very discernible.

The success of insurance is dependent on a huge number of people cooperating. The modern insurance operation entails the payment of an assessed contribution, known as a premium, by the person who want to be insured, also known as the policyholders.


The problem of modern insurance’s unpopularity in Eastern Nigeria is linked to people’s lack of awareness of modern insurance services, and they continue to believe in the traditional insurance system, which they find more convenient than modern insurance. They are still dissatisfied with the service provided by most insurance companies.

Also, some people regard insurance services as a malicious act (419), owing to the insurance company’s attitude toward the policyholder at the time of claim, which is to find one reason or another why they should not compensate the claimant.

Another factor contributing to modern insurance’s unpopularity is eastners’ perceptions of insurance services.


The purpose of this project is to find out the following:

The reasons behind Enugu State’s skepticism of modern insurance services

To identify the issues that are preventing the expansion of insurance in Enugu State.

To shed light on the reasons that aided the growth of insurance in the western states.

To provide greater information about insurance to the general audience.

To meet the prerequisites for obtaining a national insurance diploma.



The significance of this research project is based on the following.

To come up with and recommend ideas for how to improve the image of insurance in Enugu State.

To have a better understanding of the Nigerian economy and the functioning of insurance companies.

To inform the general public and insurance businesses in Enugu State that modern insurance services are not as popular as they are in Lagos State.

To assess the performance of the Nigerian economy and insurance businesses. The eastern Estates are more insurance-conscious than the western Estates.


Because the researcher is still a student and has to deal with classroom duties, she has not been able to dedicate her complete attention to her research.

Another constraint is financial incapability, which means that much could not be done due to the large financial investment, hence the study work is limited to Enugu city.


Interest that is uninsurable

This is the financial relationship between the policyholder and the insurance subject matter, in which he stands to benefit if the subject matter is not destroyed and loses if it is destroyed.


This is the price or monetary consideration paid by the insured to the insurance company in exchange for their promise to pay the sum insured if the risk covered against occurs.

3.Indemnifcation This restores the insured’s financial situation to that which existed before to the loss.

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