MARKETING OF INSURANCE SERVICES IN THE MIDST OF UNIVERSAL BANKING ENVIRONMENT PROBLEMS, PROSPECTS AND CHALLENGES
Marketing is the anticipation management, which satisfies human wants through exchange process. The system of marketing of insurance service in universal banking environmental by the central bank of Nigeria, in January 2001, in its monetary and fiscal policy guidance, as response to this enactment, certain banks in order to run effectively insurance service have by way of acquisition bought over same issuance companies and incorporates them as subsidiaries in their organization. This action execute by these banks, may eventually have an impact on the insurance industry as a whole. The research work was conducted, to see it there is actually any from of impact whatsoever on the industries due to the action. The research consulted some publication in relation due to this topic and also staged can transitive interviews with certain practitioners in the insurance industry and eventually come out with reasonable conclusion and proper recommendation in regards to this topic. The marking of insurance service in the midst of universal banking environment.
TABLE OF CONTENT
Title page i
Approval page ii
Table of content v
1.1 Background of the Study 1
1.2 Statement of the Problems 4
1.3 Objectives of the Study 5
1.4 Significance of the Study 6
1.5 Research Question 7
1.6 The Scope and Limitation of Study 8
1.7 Definition of Terms 9
REVIEW OF RELATED LITERATURE
2.1 Historical Development of Insurance Industry in Nigeria. 11
2.2 Historical Development of Banking Industry in Nigeria 14
2.3 The meaning of universal banking practice in the financial system 20
2.4 The Meaning of Marketing as Applied to Insurance in the Midst of the Universal Banking and its Products 21
2.5 Management and Investment of Insurance Fund in the Universal Banking Arrangement. 24
2.6 The Effect of Universal Banking Practice on Insurance Industry. 25
2.7 Problems Facing Marketing of Insurance Service in the Midst of Universal Banking System. 27
2.8 Prospect of Effective Management Practice of Universal Banking 29
2.9 Changes Facing the Insurance Industry 30
3.2 Locations of Data 36
3.3 Population of the Study 38
3.4 Validity and Reliability of the Instrument 38
SUMMARY OF FINDINGS 41
CONCLUSION AND RECOMMENDATION 43
5.1 Conclusion 43
5.2 Recommendation 44
APPENDIX 1 47
APPENDIX II 48
1.8 Background of the Study
There are number of projects written a marketing of insurance service in universal banking environment. But as far as know, a comprehensive work has never been written from that aspect of identifying these problem an marketing these insurance service challenges and making ways to find prospect of suggest possible solution to the general public. The insurer the insured and the insurance industry at large.
The insurance industry has a critical role to play in economic development of the country. It is in recognition of this fact that the federal government granted approvals for the establishment of more insurance companies. Therefore insurance business has grown by leaf and bounds since 1960 when the nation achieved their independence. Insurance has been promoted by the Nigeria public in cooperation with reputable foreign technical partner. This is good for the economy and it is as reflection of confidence, which both foreign and indigenous enterprises have in the Nigeria economy.
We would live toe proceed to the topic to be discussed “marking insurance services in the universal banking environment, problems, prospects and challenges” the problem definitely is a serious one, poor market strategies used in the marking of this services have lead to poor level of sales turnout in recent years.
Having marketing problem is not a new thing; they are as old as the industry itself. However, in recent times, the rate and frequency of which the come up has been a course of great concern to Nigeria because some banks lose millions of naira in various areas of transaction yearly. Despite the effects of chief inspector the insurers committee on the others hand wave of marketing problem in the insurance has continues to be on the increase.
Yet, they appear to be doubt about the fact that marketing of insurance in the midst of universal banking. The problem airs matters of greater concern to censurers and generality of Nigeria today. There are so far many reason as the problems acquired grounds and continue to grow day by day, the sizes censurers in geometric progression. As a result of this, every incidence of insurance marketing problems literally drop off a bit of the public confidence in the orthodox financial institution that insurance companies are or slow down the full development of insuring habit in Nigeria.
In view of these, insurance marketing has a number of enemies that causes these problems. Any effort to fight there enemies is therefore most desirable.
This is why we are sure that these projects will fill the gap so that the insurance market with its specialist may have some means of quality, control and have means of reducing of these marketing insurance problem.
Therefore, this project will concern itself with the problems peculiar to marketing or insurance service in the midst of universal banking problem and prospects and challenges.
1.9 Statement of the Problems
The major problems facing marketing of insurance services in the universal environment are stated below.
1. Poor management art of procreating and training salesman.
2. Bad application of insurance marketing techniques.
3. Poor banking habits.
4. Poor management control system.
5. Absence of convenient branch network.
6. Poor managerial supervision and reviews including internal audit in inspection.
1.10 Objectives of the Study
The main objectives of writing this project are mentions below
1. To ensure that insurers are given continual professional training to make insurance production effective.
2. To point out the role of insurers and intermediates in the in the marketing of insurance services
3. To identify the various marketing strategies used by the insurer
4. To point out various forms of problems of marketing of insurance service in universal banking system.
5. To examine the effect of universal banking practice in an insurance industry.
6. To know what universal banking in all about.
1.11Significance of the Study
This research work will provide a source of reference for current and future insurances satiations or historians who would wish to hope that volume of published date on insurance industry in Nigeria would rapidly increase with time.
This study will teach the society about the existence of insurance in the banking firms. It will also direct other student on the projects writing format.
This project will aim to educate the Nigeria society at large on universal banking. It is one of the partial fulfillments for the award of OND in the Institute of Management and Technology (IMT) this comparative study will provide the general public especially potential investors with vital information as well as statistical data about the marketing of insurance services in universal banking environment, their viability profitability and reliability.
1.12 Research Question
For the purpose of this project work the following research question have been formulated.
1. Does the economic problem of the country have effect on insurance marketing activities.
2. If premium charges increase will there be decrease in the demand for insurance services in banking environment?
3. Will insurance company suffers in universal banking environment?
4. Does banks capital base improve insurance business with the banks?
5. Is there any economic importance on the marketing of insurance services in universal banking environment.
6. Is there any impact on insurance?
1.13The Scope and Limitation of Study
The study covers on a general basis “the marketing insurance service in the universal banking. Thus, guarantee trust bank in uses.
In the course of preparing this work, the authors have mete with a lot of constraints, considering, the limited time given for the completion of the work and traveling to various places to obtain data with what had already been hand.
However, not all the information required was made available from the source sign the respondents were reluctant to give out information despite the fact that they were assured that the research was for the class work alone.
Another limitation is the existence of inadequate literature on the subject matter. And similar to this was the unavailability of current data on the operation of insurance industry. Consequently the work had to be done with the available data.
1.14Definition of Terms
Banking: This is a financial institution in which money and other valuable thing are kept for safety.
Universal Banking Environment: This is a given set of force in which bank operate with common aims and ability to develop to develop and maintain successfully transaction with its target of customers.
Claims: This is money that comes from insurance industry to the insured in the event of loss.
Insurer: Is a trained professional body in the insurance industry that sells insurance products.
Insurance: This is a device for the transfer of some risks or losses from the insured who otherwise would have borne the risk to an insurer in return for premium.