The Impact Of Insurance Services In The Nigerian Economy

THE IMPACT OF INSURANCE SERVICES IN THE NIGERIAN ECONOMY

ABSTRACT

The purpose of this research work was to identify the impact of insurance services in the Nigerian economy. This is because most of Nigerians looks at insurance industry as a weak and poor industry with little or no impact in the Nigerian economy. However, the researcher carefully x-ray the implication of effective contribution of insurance services to the Nigerian economy and also review the relationship between insurance industry and other economic activities in Nigeria. The researcher also examined the role of the Nigerian insurance industry in the economic development of Nigeria. Based on the findings, the researcher observed that the majority of the Nigerians lack better understanding of insurance, the result of the testing indicates that insurance industry has made a tremendous impact in the growth and development of Nigerian economy and will  do more.

TABLE OF CONTENTS

Title page                                                                         i

Approval page                                                                 ii

Dedicate                                                                          Iii

Acknowledgment                                                             iv

Abstract                                                                          v

Table of contents                                                             vi

CHAPTER ONE

INTRODUCTION                                                                        1

1.1      Background of the Study                                        1

1.2      Statement of Problems                                            9

1.3      Objectives of the Study                                           10

1.4      Research Question                                                  10

1.5      Research hypothesis                                               11

1.6      The Scope and Limitation of the Study                  12

1.7      Significance of the Study                                        12

1.8      Definition of Operational Terms                             13

References                                                               17

CHAPTER TWO

REVIEW OF RELATED LITERATURE                      18

2.1  An Overview                                                            18

2.2      Classification of Insurance Business in Nigeria.    21

2.3      An Analysis of the Nigerian Economy                    26

2.4      The Impact of Insurance Services in the

Nigeria Economy                                                     28

2.5      The Role of Insurance Intermediaries in

Promoting the Economy                                         35

2.6      The Beneficiaries of Insurance in Nigeria               40

2.7      Factors Militating Against the Growth of

Insurance Services in Nigeria.                                41

2.8      The Challenges Facing the Insurance

Industry in Nigeria.                                                45

2.9   Summary and Conclusions                                    47

References                                                               49

CHAPTER THREE

3.1      Research Design                                                     50

3.2      Area of the Study                                                    50

3.3      Population of the Study                                          51

3.4      Samples Size and Sampling Technique          52

3.5      Method of Data Collection                                      53

3.6      Method of Data Presentation and Analysis            54

3.7      Validity of Data Instrument                                   55

3.8      Reliability of Data Instrument                                56

References                                                               57

CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA                                                                   58

4.1      Data Presentation and Analysis                           58

4.2      Testing of Hypothesis                                               78

References                                                               89

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION

AND RECOMMENDATION                                      90

5.1      Summary of Findings                                             90

5.2      Conclusion                                                              92

5.3      Research Recommendation                                    92

References                                                               94

Bibliography                                                           95

Appendix                                                                 98

Questionnaire                                                         99

CHAPTER ONE

INTRODUCTION

1.9     Background of the Study

Insurance which has existed from thousands of years, has emerged in today’s world as a very large field With many dimensions and specification. Today’s world is dominated by great changes. Anywhere in the world, industrialization is becoming a truly world wide phenomenon-within the frame work which accompanied by the organization of independence within global interdependence, everything is trusted into new and large dimension including risk and uncertainty.

Insurance been one of the most important ways of organizing security is at the crossroads of both phenomena.

This assertion does highlight the unique position of the insurance industry in contemporary business world. It also put into focus the overwhelming scores that accrue to this commercial organization in the changing times of our society. The developing of the insurance industry has now come to be regarded as a key feature in the economics on-goings of the business world and so it is first natural that Nigeria when it finally attained independence in 1960 identified insurance as one of the economic activities. She is however witnessing some tremendous progress in the field.

Before the existing of modern insurance, man lived in a subsistence though the environment was still exposed to hazards of risks. (natural disasters and fire accidents) the gradual development of man’s totality of life (economics, social, political and of course technological) has been equally followed by exposure to society become complex, the need to eliminate these risks or ameliorate the effects they might have on man and society makes a way of achieving social security.

In the Nigerian economy, modern insurance, which is a follow-up to the traditional arrangements by the extended family and other traditional societies, and organizations (to help any members who suffered any loss by way of accident or death) is at the early stage of development. As a result of this, we are experiencing the usual problems of late comers. Those problems coupled with an array of socio-economic leaves us with wider scope for development in this filed. This not withstanding, the Nigerian economy is witnessing a tremendous impact has attracted the researcher’s interest and as such, hence carefully look at this industry in the economy; the technicalities of insurance and the volume of business operation.

However, the subject of insurance can never be discussed in isolation of its definition. Many writers and authorities in insurance literature have given several definition of the term “insurance”. These  definitions of all