THE ROLE OF INSURANCE COMPANIES IN NIGERIA ECONOMIC DEVELOPMENT.
This project is the role of insurance companies in Nigeria economic development. The insurance industry, from all indication plays a vital role in Nigeria economic development as well as in the problem of risk management in Nigeria. It is very obvious that the majority of the public who are ignorant of the contributions made by the insurance industry have more faith in the banking and other financial institution but these people forget the fact that the banking institution acknowledges the fact that the insurance companies contribute significantly to the development of the economy of the nation.
Chapter two is the review of related literature the most prominent among there were the extended family system the age grade association and the provide some kind of insurance covers to their member especially during adverse period.
Chapter three is a research design and methodology as this project work is done on secondary data only. And chapter four is the findings that from the research and finding are that insurance companies settle more loss claim now than before.
Chapter five is the conclusion and recommendation.
I hereby acknowledge the academic and moral support received from dr john oriji (director of school of financial studies). Mr. J. C. Odike former director school of financial studies and other in department such as Mr. Udeh, S. O. Mr. ikecheonwo B.T. Mr. Iloh J. VC and Okafor P.C.
Finally, I acknowledge my dear EDDY and MUMMY my brothers and sisters and also Rev FRANTONY AGU for there support in my studies and to unmentioned who help me in various way i have nothing to give but i pray that almighty father will reward them back in the name of the father and son and of the holy spirit a-men and a-men.
TABLE OF CONTENTS
TITLE PAGE I
TABLE OF CONTENTS VI
1.0 INTRODUCTION AND BACKGROUND OF THE STUDY 1
1.1 STATEMENT OF THE PROBLEM 2
1.2 PURPOSE /OBJECTIVE OF THE STUDY 3
1.3 SIGNIFICANCE OF THE STUDY 4
1.4 LIMITATION OF THE STUDY 5
1.5 REFERENCES 6
2.0 LITERATURE REVIEW 7
2.1 THEIR ROLES IN DEVELOPMENT OF OUR NATION ECONOMY 8
2.2 DIFFERENT CLASSES OF INSURANCE AND THEIR CONTRIBUTION IN ECONOMIC DEVELOPMENT 9
2.3 REFERENCES 10
3.0. RESEARCH DESIGN AND METHODOLOGY 11
3.1 SOURCES OF DATA 12
3.2 LOCATION OF DATA 13
3.3 METHOD OF DATA COLLECTION AND METHODOLOGY OF INVESTIGATION 14
4.0. FINDINGS 15
5.0 CONCLUSION AND RECOMMENDATION 16
5.1 RECOMMENDATION 17
INTRODUCTION BACKGROUND OF THE STUDY
Insurance has been defined as an economic device where by risk of people and economic enterprises are transformed from in individual to a group in the process the individual pay’s a fee know as the premium to the group for the assumption of risk in the evidence of the contract of risk assumption, the group issues document known as the insurance policy. To the individual the total of the fee paid to the group by the policy holder constitutions the fund or pools from which losses of individual members of the group are paid the group is known as the insurance while the individual is referred to as the insured.
The insurance industry from all indication plays a vital role in Nigeria economic development as well as in the problem of risk management in Nigeria. It is very obvious that the majority of the public who are ignorant of the contributions made by the insurance industry have more faith in the banking or other financial industries. But these people forget the fact that the banking institution acknowledges the fact that the insurance companies contribute significantly to the development of the economy of the nation. And this is why loans collected from them. The establishment of NDIC to help curb the rate of distress bank is another measure to slow that the role of insurance is very vital to economic development. The government had since, also seen the important of the insurance institution in risk management and development. Because of these the government has made some insurance policies compulsory in Nigeria. As can be seen in various insurance. Acts that every or any motor owner must have one of the various insurance covers available in motor insurance in the country. The government had also made it compulsory that all her big building must be insured against fire.
Therefore in this study are going to stress within my scope and unit of the information in my reach the role played by the insurance institution in the economic development of the nation.
1.2 STATEMENT OF THE PROBLEM
THE PROBLEM FACING INSURANCE COMPANIES IN NIGERIA.
Here!? I want to have a general discussion on some problem that hinder to insurance institutions from servicing their aim to economic development. These problems include the following:
SOCIO- ECONOMIC PROBLEM. There are some socio-economic factor which generally affects the attitude of Nigeria toward insurance these factors are religions belief, cultural background low, economic income pretence for ostentations life to thrift and the level of development. As a matter of fact, “some cultures for instance look at life policy as inhuman hence some muslems have manifested strong religion entergenusm to life assurance.
Finally, at our resent level of development there is limited personal prosperity on which insurance could be secured and since most people are living from hand to month” insurance receive less attention. All these lead to the general problem of poor attitude of Nigerians towards insurance.
Technical problems in insurance encompass those problems relating to manpower, level of education and poor capital base. If you ask any body who has any idea about insurance he will tell you that the basic problem with the insurance is lack of adequate technically qualified manpower.
Initially. People were not interested in taking up insurance jobs and those who eventually take up the job are poorly educated on the field the situation is worsened by the lack of property coordinated training programme for the staff. Consequently the services of the industry are below expectation due to inadequate made of premium collection. Lack of reliable statistics and poor settlement of claims.
Many people rush into the business of insurance through lack door means without meeting up the capital and other requirements. So when they are struck by hand economic situation, failure becomes theirs.