Role Of Insurance Industry In Management Of Environmental Risk

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ROLE OF INSURANCE INDUSTRY IN MANAGEMENT OF ENVIRONMENTAL RISK

ABSTARACT

The subject of this research work is the role of insurance industry in management of environmental risks, in every environment there are risks that affect man and their inhabitants, this condition affects our behaviour and development as the natural endowment and resource that we like on stem from it. Most activities man does more especially in our environment are causing one environmental pollution or the other as a result. Enviornment degradation has been noticed most especially in some operational companies. People engage in a lot of activities in an organizational setting, a lot of injury and accident occur in the organization and these activities also constitute unnecessary health hazards to people and their environment. The study actually wants to x-ray the role of insurance industry in management of environmental risk exposed to an organizational setting. The researcher made use of primary and secondary method of data collection and major instrument used in ascertaining information was a structured questionnaire which is designed to collect major information needed for the study. The researcher also used likert scalling statistical model in analyzing the data collected and Z-test in testing hypothesis postulated. The researcher find out that environment manager most often use various insurance policies in management of risks exposed to the industry. Recommendation was made based on the findings that proper insurance policies should be adopted on the process of managing these risks      

                                                                    

 

 

TABLE OF CONTENTS

Title page                                                                                                   i

Approval page                                                                                           ii

Dedicate                                                                                                     Iii

Acknowledgment                                                                                       iv

Abstract                                                                                                     v

Table of contents                                                                             vi

CHAPTER ONE

Introduction

1.1       Background of the study                                                                 1

1.2       Statement of problems                                                                    2

1.3       Objectives of the study                                                                    3

1.4       Research questions                                                                          4

1.5       Research hypothesis                                                                        4

1.6       Significance of the study                                                                  5

1.7       Scope and limitation of the study                                                    6

References                                                                                                  9                                                     

CHAPTER TWO

Review of related litterateur

2.1      Theoretical frame work                                                   10

2.2      Various activities carried out in the environment         13

2.2.1        Marketing                                                                13

2.2.2        Clams settlement                                                   14

2.2.3        Buying and selling of insurance polices                 14

2.2.4        Operation of machine                                             14

2.2.5        Claim investigation                                                 15

2.2.6        Assessment of properties                                        15  

2.3   Various risk that arise form environment activities      15

2.3.1        Risk theft                                                                 15

2.3.2        Risk of accident                                                       16

2.3.3        Risk of fire our break                                              16

2.3.4        Risk of infidelity                                                      17

2.3.5        Risk of poor market                                                17

2.3.6        Risk of pecuniary loss                                             17

2.3.7        Risk of health hazard                                              18

2.4   Concept of risk                                                                18

2.5   The concept of insurance                                                19

2.6   Historical development of insurance                              21

2.7   Reason for insurance business in Nigeria                      24

2.8   The role of insurance in reducing environment risk                27

2.9   The need for survey in the environment risk management         30

2.10The problems facing insurance industry in the environment

        Risk management                                                            32

2.11The prospects of effective environment risk management        35

2.12The impact of effective environmental risk management through insurance in the economic development in Nigeria                      36

          References                                                                                        39

CHAPTER THREE

 Research methodology

3.1    Introduction                                                                                     41

3.2    Source of data                                                                                 42

3.2.1           Primary sources of data                                                        42

3.2.2           Secondary source of data                                                      42

3.3    Population and sampling size                                                         42

3.4    Instrument used in determination the sample size                       43

3.5    Validity of the instrument                                                               44

3.6    Method of data presentation and analysis                                     45

          References                                                                                        48

CHAPTER FOUR

  Data presentation and analysis

4.1    Data presentation                                                                            49

4.2    Data analysis                                                                                   49

CHAPTER FIVE

Summary of research findings conclusion and recommendations

5.1    Summary of research findings                                                       72

5.2    Conclusion                                                                                       73

5.3    Recommendation                                                                             74

5.4    Suggestion for further studies                                                        75

          Bibliography                                                                                    77

          Appendix                                                                                          80

          Questionnaire                       

                                                                                                                             81     


CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND

In every Environment various activities carried out by man has caused a lot of hazard, to man, this environmental activities constitute health hazard to environment, such environment is in an organization setting like insurance industry. The hazard has resulted to a lot of sickness, disease, death etc to the inhabitant.

        Public nuisance for the inhabitant is been resulted form noise of machines. The management of risk in the environment has adopted by various government and private organs on managing the risk of the said environment.

        In this aspect there are some activities in the environment which brought about pollution on different forms which causes damages to the health.

        We can understand that security protection is the right of citizens. Good health is better than wealth. A health nation is a wealthy nation, In the production industry and others, most of the activities result to health hazards which constitute some wounds to workers through accident and inadequate protect resulting form improper risk management.

        It is also necessary to evaluate the expected role of adequate risk management through the help of insurance industries and its services like accident insurance, Health insurance, fire insurance, fidelity insurance etc. in order to reduce the loss and compensate those affected.

1.2     STATEMENT OF THE PROBLEMS

The risk on environment such as in insurance industries has caused a lot of harm to people and their inhabitants even to the process government and even private bodies of various levels have implanted, various ways and strategies to enable them handle this ugly issue.

        The impact of the losses is always very high. The risk in the environment and its impact is equally very high. It has suggested that all the effort has not been released. It is because on this possibilities of identifying various types of environmental risk.

1.3     OBJECTIVE OF THE STUDY

The objective of this study are as follows.

1.          To identify various types of environmental risk in this study.

2.          To identify the impact of such risk on the inhabitant of the environment.

3.          To find out various ways of management of environmental risk.

4.          To know the role insurance industry plays in the management of this risk.

1.4     RESEARCH QUESTIONS

1.          What are the problems of environmental hazard?

2.          What are the implications of environmental hazard to the inhabitants?

3.          Can environmental hazard be managed?

4.          Through which process can it be managed?

1.5     RESEARCH HYPOTHESES

Ho:Environmental hazard does not have significant implication on the inhabitants.

Hi:Environmental hazard have implication of the inhabitants.

Ho:Environmental hazard does not have problem.

Hi:Environmental hazard have problem.

Ho:Environmental hazard cannot be managed.

Hi:Environmental hazard can be managed.

Ho:Insurance polices cannot be used in management of the risk in any organization setting.

Hi:Insurance polices can be used in management of the risk in any organization setting.

1.6 SIGNIFICANCE OF THE STUDY

The importance of the study are as under-mention.

a.          The study will completely access the role of insurance industries and their services in environmental risk management of the organization.

b.          This study will act as a means of creating more awareness an importance of environmental risk management to organizations.

c.           This study will improve the service of the organizations that have adapted this polices.

d.          This study will educate the staff and the bored on the need to appreciate the practice of insurance service.

e.           This study will show the need of professionals in underwriting this organization.

f.            This study will serve as a foundation for further researcher.

g.           Lastly this study is done in partial fulfillment of the requirement for the award of Bachelor of science (B.Sc) degree in insurance and risk management.

1.7     SCOPE AND LIMITATION OF THE STUDY

This study is basically dealing on the role of insurance industries in the management of Environmental risk; it also stated the area in which environmental risk management has help through the discharge of insurance services. Data were sourced from many areas like internet, NICON insurance located at Ogui Road Enugu, project Journals relating to this study these data are used for marking generation on role of insurance industry in the management of environmental risk. The research was however constrained by the following factors.

Money: This is agent in the aspect of transportation, communication intensive collection of data.

TIME:       Which is for the conduct of this research was rather two short when combined with the academic calendar of the school.

OPERTIONAL DEFINITION OF TERMS

Hazard:   This is the condition that creates chance of loss arising from peril.

Insurance: It is a business where by a group of participant in the scheme contributes money within a period in which a member that suffers loss will be compensated.

Organization: It is a group of people who form a business together in order to achieve a particular aim.

Pollution: It can be define as harmful or annoying level of noise or of artificial light at night.

Environmental risk: It can be defined as a risk exposed to the inhabitant connecting with the natural conditions.

Policy: It can be defined as a written statement of a contract that makes insurance business valid.

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