MARKETING OF LIFE ASSURANCE POLICIES IN NIGERIA PROBLEMS AND PROSPECTS
This research work, the researcher examined the problems and prospects of marketing of life assurance policies in Nigeria. The information for the study was collected using primary and secondary methods of data collection. For the primary data collection, questionnaire was used while existing literature relevant to the topic was consulted for the secondary data. The sample size was determined using Taro Yamani formula the percentage method was used for data analysis while Chi-square statistical mode was used to test the formulated hypothesis. The researcher found out that Life assurance companies in Enugu specializes in life assurance business but they are experiencing inadequate patronage. Life assurance companies use brokers, agents and partially employed salesmen in marketing of life assurance policy to the insuring public. Based on the findings the researcher recommended that Government should establish insurance educational centers which should organize lectures, seminars, educational conferences and study programmes for the good of the public.
TABLE OF CONTENTS
Title page ii
Approval Page iii
1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Objective of the Study 5
1.4 Research Questions 6
1.5 Research Hypothesis 7
1.6 Significance of the Study 7
1.7 Scope and Limitations of the Study 8
1.8 Definition of Operational Terms 9
REVIEW OF RELATED LITERATURES
2.1 An Overview 11
2.2 Historical Development of the Case Study 17
2.3 Historical Development of Life Assurance in Nigeria 19
2.4 How Individual Life Assurance Are Transacted 20
2.5 Special Characteristics of Marketing Life Assurance 23
2.6 The Impact of Life Assurance Policies on the Society 27
2.7 Marketing Strategies of Life Assurance Polices 30
2.8 Problems Facing Marketing of Life Assurance Policies 34
2.9 Prospect of Adequate Management 35
RESEARCH METHODOLOGY AND DESIGN
3.1 An Overview 37
3.2 Source of Data 37
3.2.1 Primary data 38
3.2.2 Secondary data 39
3.3 Population of the Study 41
3.4 Sample size and Sampling Techniques 41
3.5 Validity and Reliability of the Instrument used 42
3.6 Method of data Presentation and Analysis 43
DATA PRESENTATION ANALYSIS, DISCUSSION OF FINDING
4.1 An overview 46
4.2 Data presentation 46
4.3 Data Analysis 49
4.4 Testing of Hypothesis 60
4.5 Discussion of Findings 65
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS.
5.1 Summary of Findings 66
5.2 Conclusions 68
5.3 Recommendations 69
5.4 Suggestions for Further Studies 74
Sample questionnaire 77
1.1 Background of the study
In Nigeria the issue of taking life assurance policy has been neglected, in the sense that at this present time, it is estimated that not up to two percent (2%) of Nigerian’s own life assurance policies, from the research made on the internet, life assurance business is more operated and recognized in other countries such as UK, USA, Canada, Germany and other European countries, in Africa life assurance business is more recognized in South Africa for this fact, the benefits and roles life assurance plays in this country is being viewed from a very cooked point there by making it slightly visible moreover, the life assurance industry has entered on era of accelerated change as a result of increased competition, such as other life institution e.g. National Health Insurance Sector (NHIS). Hence professional marketing management is now a pre-requisite, if a company is to return or advance its position in the competition hierarchy.
Based on the investigations made on net, the major contention of this or the major aim of writing this is to pinpoint some of the challenges affecting life assurance industries in Nigeria.
1.2 Statement of problem
a. Previous studies has shown that sub-standard policies which was designed by the underwriter’s could not meet the current change in the society towards satisfying individuals needs.
b. High rate of poverty in the country that results to no interest or concern by the individuals to effect life assurance policy.
c. The low demand for life assurance policies which could b e as a result of in appropriate marketing strategies.
d. The high rate of illiteracy which affects the easy or free flow of life assurance business in Nigeria.
1.3 Objective of the Study
In this study, the main objective is to find out the problems militating against or the challenges affecting the marketing of life assurance policies in Nigeria and to proffer solutions remedy on way out of the problem or how the problem will be solved.
Those specific objectives as are as follows:
a. To know whether those policies were designed to meet the current change of the need of the individuals/ the consumers.
b. To find out how the high level of poverty in the country affects the patronage of life assurance policy.
c. To examine whether those strategic method in marketing of life assurance policies are suitable for the business in promoting the industry.
d. To find out if there is any alternative means for creating an awareness of life assurance policies to the uneducated one in the society.
1.4 Research Questions
a. How does those policies designed, meet the need of the individuals/ the consumers.
b. To what extent has high level of poverty in the country affected the patronage of life assurance policies?
c. How do those strategic methods in marketing of life assurance policies suitable for the business in promoting the industry.
d. What are those alternative means for creating an awareness of life assurance policies to the uneducated ones in the society?
1.5 Research Hypothesis
Ho: High level of poverty in the country does not affect the patronage of Life assurance policies in Nigeria.
H1: High level of poverty in the country affects the patronage of Life assurance policies in Nigeria.
Ho: Those strategic methods used in marketing of life assurance policies are not suitable for the business in promoting the industry.
H1: Those strategic methods in marketing of life assurance policies are suitable for the business in promoting the industry.
1.6 Significance of the Study
The study of the problems facing marketing of life assurance companies is significant in many ways especially to the insures, the life assurance intermediary and the insuring public hence at the end of this study, the insured and the life assurance intermediaries will be able to identify the problem militating against the effective marketing of life policy in the society.
The study as also meant to highlight the need for adequate sales promotion method, advertising principles and under writing of the life assurance policy.
Finally, it pointed out the need for marketers in the concepts, strategies and application of marketing as a spring board for growth and also the need for them to work with the actuaries of the life policies to specific target market.
1.7 Scope and Limitations of the Study
This scope is a study on the marketing of life assurance policies in Nigeria with the aim of exposing it’s problems and prospect the researcher used Leadway, Niger insurance Company and IGI life assurance as a case study.
In the course of carrying out this work the researcher encountered some challenges which are stated below:
Time: In respect to the theoretical and practical work the time allowed for project was very limited besides they were carried out with other academic assessment.
Finance: Due to high rate of academic fees I could not be able to carry out research with easy as I was planned.
1.8 Definition of Operational Terms
i. Marketing: This is the activity being carried out by individual and organization aimed at facilitating the exchange process in order to satisfy needs.
ii. Life assurance: This is contract of insurance on party called assurer and assured, the assured who agreed subject to some term and condition ns that he would pay some money on the death of life assured on the precious maturity of the policy.
iii. Premium: This is the monetary consideration paid by the assured for insurance cover that is the price of the insurance service rendered.
iv. Policy holder: A person who owns an insurance policy. It also the owner of an insurance policy usually but not always the insured.
v. Endowment: This is the combination of term assurance an d pure endowment which stipulated that if the life assured survives to the future agreed date the assured will receive his benefit personally while alive.
vi. Policy: A document showing an agreement you have made with an insurance company.