ABSTRACT
The research work conducted in the project topic title “The Impact of insurance
Companies in Economic Development of an Economy”, has achieved the objectives
of carrying out the study, which are:-
To establish the impact
of the insurance companies have made and likely to make in future, the growth
and stability of the nations economy and also areas where the insurance
industry has failed in its noble objectives and make recommendation for
improvements for better services of the industry.
It has looked into the impact of insurance service to developing economy of
Nigeria . And also the contributions of insurance services to the buyer
of insurance products or its benefits to the purchases of these produce such as
life assurance product motor insurance, Fire insurance, Marine, accretion.
Insurance plays a significant role in gross domestic products through its
financing of investment in Nigerian Companies.
The project writing was implemented using both primary and secondary
sources. The primary consisted the Questionnaire prepared and distributed
to the insuring public. Oral interviews and personal observation (Field
Surveys) were also use during the research work.
While, secondary data was based on review of some related books, Journals and
newspapers.
Response from the questionnaires collected was analyzed using random sampling
techniques and frequency tables.
Finding was emerged based on the analysis ands recombination was provided.
Finally, at the end of
the research work, I was able to active the aim of knowing the impact of
insurance Companies in economic development.
PROPOSAL
Insurance is a complex Subject that involves the people who are willing
and able to have the service.
The objectives of this research work is to establish the impact the insurance
Companies has made and likely to make in future, the growth and stability of
the nations economy and also areas where the insurance industry has failed in
its noble objective and make recommendation for improvement of better services
of the industry.
It will also look into the impact of insurance Service to developing economy of
Nigeria. The Research will also look into the contributions
of Insurance services to the buyer of insurance products or its benefits to the
purchase of these product such as life Assurance product, motor insurance, fire
insurance, Marine, Acration.
Insurance plays a
significant role in gross domestic product through its financing of investment
in Nigerian Companies.
The project will rely on
both primary and Secondary Sources. The primary data will consists of
prepared closed ended questionnaires to be distributed to insuring public.
It will also make use of
oral interviews and personal Observation. (Field Surveys).
While secondary data will be based on review of some related books, Journals
and news papers. Response from the questionnaires collected be analyzed
using random sampling techniques and frequency tables.
TABLE
OF CONTENTS
CHAPTER ONE
1.0
INTRODUCTION
1.1
Background
1.2
Research Objective
1.3
Statement of the Problems
1.4
Significance of the study
1.5
Statement of Hypothesis
1.6
Scope of the Study
1.7
Definition of Terms
Reference.
CHAPTER TWO
2.0 LITERATURE
REVIEW
2.1
Impact of insurance Company in economic development
2.2
Positive Impact
2.3
Negative Impact
2.4
Various risk insurance Cover
2.5
Factors that cause an economy to develop
2.6 Conclusion
Reference.
CHAPTER THREE
3.0
RESEARCH DESIGN AND METHODOLOGY
3.1
Sources of data
3.1.1Primary data
3.1.2 Secondary data
3.2
Sample used
3.3
Method of investigation
Reference.
CHAPTER FOUR
4.0
DATA PRESENTATION AND ANALYSIS
4.1 Introduction
4.2 Data
Presentation
4.3 Analysis
of Data
4.4 Test
of Hypothesis
4.5 Interpretation
of results
CHAPTER FIVE
5.0 SUMMARY
OF FINDINGS
5.1
Discussion Of Findings
5.2
Conclusion
5.3
Recommendations
Appendix
Questionnaire.
CHAPTER
ONE
1.0 INTRODUCTION
The theme of this
project is “The Impact of Insurance Companies on the economic development of an
economy”
(A Case Study of Nicon
Insurance Plc Enugu). It is my intention to examine the following:
(a) Brief
history or historical aspect of insurance
(b) Meaning of
Insurance
(c) Functions
(A) HISTORICAL
ASPECT OF INSURANCE
Modern Commercial
Insurance was introduced into Nigerian in the first quartet of the 20th –
Century by early British Merchants who established trading posts on the West
Coast of Africa. Until 1921 when the Royal exchange Assurance Company
Limited opened its Office in Lagos. The business of insurance was
hither to conducted on Skeletal agency arrangement.
But today, it has
increased to many Companies in Nigerian.
(B) MEANING
OF INSURANCE
Insurance could be
defined as one of the social sciences designed mostly tasking risk and risk
taking involves uncertainty of loss (OKWOR, 1985). Therefore
Insurance Company is a Service Company on which the activities of other
business enterprise depend for security and protection.
(C) FUNCTIONS
OF INSURANCE
Many writers have mentioned some of the
functions of insurance which the researcher will not hesitate to mention
by listened to all these functions.
i. Insurance
guarantees to persons that their individual financial losses will be fairly and
equitably distributed over the insured Community or group as a whole.
ii. By
offering financial Security to business and enterprises, by offering money to
finance the replacement of loss and damage.
iii. Insurance
Industry serve as an effective vehicle for the mobilization of natural
resources for the mobilization of natural resources for the national
development efforts.
iv. Insurance
Industry is an important employer of Labour thus provided Joint opportunities
for the teeming population of this country and helping to solve the
unemployment problems.
Therefore with the
regards to the economy of which is in a state of depression, Insurance
functions could be linked as a tool for looking into this depression since the
industry is also in Line with the financial activities of the country.
Insurance Companies provide
the service of Financial sustenance to other participants in the
economy. They do this by ensuring the financial survival other
business in the event of the unfortunate occurrence of insurable
risks. Without such financial compensation as offered by the insurance
industry, many a business would have been out of existence, with all the
attendant economic waste.
The economic development
of any nation is closely related tot he behaviour of individuals living in that
country as regards how much to save and how much to consume from their earned
income.
From the national
accounting point of view savings equals investment. It is also true that
for a country where the inhabitants make a consistent effort to save a part of
their disposable personal income, such a country will be economically viable
that is ignoring the uncontrollable variables such as political instability and
depression.
Savings are worthwhile
to the extent that they are sensibly and Judiciously employed in the various
development projects with the economy thus contributing to the gross domestic
product which determines the standard of living in a particular country.
It is for this reason that the government encourages people to save through
government approved institutions including the insurance
companies. There are advantages to be derived from creating in the
individual, a sense of thrift by saving money through easy monthly installments
and the collection into a pool, the otherwise inevitable individual
contributions which provide a regular source of investment loan in the
economy.
1.1
STATEMENT OF PROBLEM
Inspite of its enormous
contributions to the economic development of Nigeria, the insurance Company
remains grossly misunderstood.
A good inquiry into the
genesis of the problem in insurance Company will reveal that the problems is
traceable to three institutions namely:- The Insurance industry, the media and
the public.
It is in good order to
start by considering how the insurance Company has contributed tot he
problem. Basically, the strongest negative influence on the insurance
companies in Nigeria the literacy level of the public and the inability of the
insurers to communicate with them. Out of over 180 registered companies
in Nigerian, only a very few have officers or units engaged in Public
relations.
The ordinary citizen is
yet to clearly understand the principles citizen is yet to clearly understand
the principles and practice of insurance while the so called elite in he
society are ignorant of ways in which insurance companies operate.
How has the media
contributed tot he problem if insurance Companies being misunderstood ?.
There are about 86
dailies and week lies as well as 38 magazines in this country, yet on
insurance. On a closer examination, one finds out that most of the
reports published by the sampled newspapers were mainly routine and uniformed
in that they lacked depth.
Industry through numour
mongering. The members of the public have spread so much general suspicion
and distrust about the industry that everything about insurance in this country
now appear to be son uninteresting and far form being genuine. Because they are
not clear about the principles and practice of insurance, their minds are all
ready made up as to what insurance is all about. They have become so
based that and Nigerian even though Ignorant of the main gains of insurance
would not want to talk about it as a subject more so buying it. There is
or curse, the issue of delay in the settlement of claim which has in its own
way painted the insurance industry black.
1.2 PURPOSE
OF STUDY
Insurance has
indeed contributed to the economic development of Nigeria inspite of all the
strong negative influences attached to its continued existence.
The following are the
purpose of the study.
- it
is already a know fact that the insurance companies plays a vital role in the
economy of Nigeria, this work is set out to established how much
contribution. The industry has made and in what area.
- This
work will also determine the effect contributions of the insurance companies on
the economy of Nigeria.
- To
make recommendation based on findings.
1.3
SIGNIFICANCE OF THE STUDY
This study will be of utmost importance to Nigeria populace in that it will
contributed to their under standing of the principles and practice of insurance
and the need for it. It will also help in clearing the mountain of bias which
is already filed up in the minds of the public about insurance.
This research work highlights the glaring problem affecting the operation of
the insurance industry in Nigeria and also goes further to explain he problem
and how it can be solved.
Through the help of
these identified problems, the insurance company would be able to come up and
therefore know the possible areas of improvement in order to bring a lasting
solution the problem of bad image of the industry before the public.
The timing of this research work is very appropriate particularly as the decade
is gradually coming to an end when Nigeria and other nations of the world
anticipates there will be everything for all including insurance.
The relevance of this
study this time it therefore indispensable.
1.4
STATEMENT OF HYPOTHESIS
In
order to progress in this research work, the following hypothesis were
formulated:
1. Whether
the Insurance literacy level of the pubic affects their desire and demand for
insurance products and service.
2. Whether
the insurance companies has been playing an appreciable role in the economic
development of Nigeria
3. Whether
the Insurance accepted level is Nigeria is low
4. Whether
the insurance professionals are doing their best in Nigeria economy.
1.5 SCOPE
OF THE STUDY
The scope of this research work covers the role of the Insurance Companies in
the economic development of Nigeria.
The topic of this work
is a very interesting area of study ands Nicon Insurance Plc Enugu is used as a
case study.
A lot of problems were
encountered by the researcher which militated against the progress of the
work. Some of the problems include:-
i. Lack
of adequate materials dealing in an up to date findings. The created a lot of
problems as the researcher needs the most recent materials to work with.
ii. Most
insurance companies are not quoted in the stock exchange market and they are
not willing to make available their animal reports to the strangers.
iii. At
a points it took only the grace and the miracle working power of God for the
finding of this research work to be possible.
1.6 DEFINITION
OF TERMS:
1. Insurance
interest Þ this is the legal right to insure.
2.
Re-Insurance Þ This is any
class of insurance to be
treated as insurance business of the class t which such
business would have belong if it had been under
written
by the reinsurer.
3. Insurance
Brokers Þ This is a proffessional insurance
practitioner who works independently to link individuals
and companies who need insurance with insurers best
qualified to meet insurance the insurance needs of those
individuals or companies.
4. Moral Hazard Þ
This is the right of a person who has indemnified another under a Legal
Obligation to stand in the place of the other person and avail himself of all
the rights and remedies available tot heat other person whether already
enforced or not.
5.
Premiums Þ This is the monetary
consideration
passing form the insured tot he insurer for their
undertaking to pay the sum insured in the event
of the
risk insured against happening.
ABSTRACT
The research work conducted in the project topic title “The Impact of insurance
Companies in Economic Development of an Economy”, has achieved the objectives
of carrying out the study, which are:-
To establish the impact
of the insurance companies have made and likely to make in future, the growth
and stability of the nations economy and also areas where the insurance
industry has failed in its noble objectives and make recommendation for
improvements for better services of the industry.
It has looked into the impact of insurance service to developing economy of
Nigeria . And also the contributions of insurance services to the buyer
of insurance products or its benefits to the purchases of these produce such as
life assurance product motor insurance, Fire insurance, Marine, accretion.
Insurance plays a significant role in gross domestic products through its
financing of investment in Nigerian Companies.
The project writing was implemented using both primary and secondary
sources. The primary consisted the Questionnaire prepared and distributed
to the insuring public. Oral interviews and personal observation (Field
Surveys) were also use during the research work.
While, secondary data was based on review of some related books, Journals and
newspapers.
Response from the questionnaires collected was analyzed using random sampling
techniques and frequency tables.
Finding was emerged based on the analysis ands recombination was provided.
Finally, at the end of
the research work, I was able to active the aim of knowing the impact of
insurance Companies in economic development.
PROPOSAL
Insurance is a complex Subject that involves the people who are willing
and able to have the service.
The objectives of this research work is to establish the impact the insurance
Companies has made and likely to make in future, the growth and stability of
the nations economy and also areas where the insurance industry has failed in
its noble objective and make recommendation for improvement of better services
of the industry.
It will also look into the impact of insurance Service to developing economy of
Nigeria. The Research will also look into the contributions
of Insurance services to the buyer of insurance products or its benefits to the
purchase of these product such as life Assurance product, motor insurance, fire
insurance, Marine, Acration.
Insurance plays a
significant role in gross domestic product through its financing of investment
in Nigerian Companies.
The project will rely on
both primary and Secondary Sources. The primary data will consists of
prepared closed ended questionnaires to be distributed to insuring public.
It will also make use of
oral interviews and personal Observation. (Field Surveys).
While secondary data will be based on review of some related books, Journals
and news papers. Response from the questionnaires collected be analyzed
using random sampling techniques and frequency tables.
TABLE
OF CONTENTS
CHAPTER ONE
1.0
INTRODUCTION
1.1
Background
1.2
Research Objective
1.3
Statement of the Problems
1.4
Significance of the study
1.5
Statement of Hypothesis
1.6
Scope of the Study
1.7
Definition of Terms
Reference.
CHAPTER TWO
2.0 LITERATURE
REVIEW
2.1
Impact of insurance Company in economic development
2.2
Positive Impact
2.3
Negative Impact
2.4
Various risk insurance Cover
2.5
Factors that cause an economy to develop
2.6 Conclusion
Reference.
CHAPTER THREE
3.0
RESEARCH DESIGN AND METHODOLOGY
3.1
Sources of data
3.1.1Primary data
3.1.2 Secondary data
3.2
Sample used
3.3
Method of investigation
Reference.
CHAPTER FOUR
4.0
DATA PRESENTATION AND ANALYSIS
4.1 Introduction
4.2 Data
Presentation
4.3 Analysis
of Data
4.4 Test
of Hypothesis
4.5 Interpretation
of results
CHAPTER FIVE
5.0 SUMMARY
OF FINDINGS
5.1
Discussion Of Findings
5.2
Conclusion
5.3
Recommendations
Appendix
Questionnaire.
CHAPTER
ONE
1.0 INTRODUCTION
The theme of this
project is “The Impact of Insurance Companies on the economic development of an
economy”
(A Case Study of Nicon
Insurance Plc Enugu). It is my intention to examine the following:
(a) Brief
history or historical aspect of insurance
(b) Meaning of
Insurance
(c) Functions
(A) HISTORICAL
ASPECT OF INSURANCE
Modern Commercial
Insurance was introduced into Nigerian in the first quartet of the 20th –
Century by early British Merchants who established trading posts on the West
Coast of Africa. Until 1921 when the Royal exchange Assurance Company
Limited opened its Office in Lagos. The business of insurance was
hither to conducted on Skeletal agency arrangement.
But today, it has
increased to many Companies in Nigerian.
(B) MEANING
OF INSURANCE
Insurance could be
defined as one of the social sciences designed mostly tasking risk and risk
taking involves uncertainty of loss (OKWOR, 1985). Therefore
Insurance Company is a Service Company on which the activities of other
business enterprise depend for security and protection.
(C) FUNCTIONS
OF INSURANCE
Many writers have mentioned some of the
functions of insurance which the researcher will not hesitate to mention
by listened to all these functions.
i. Insurance
guarantees to persons that their individual financial losses will be fairly and
equitably distributed over the insured Community or group as a whole.
ii. By
offering financial Security to business and enterprises, by offering money to
finance the replacement of loss and damage.
iii. Insurance
Industry serve as an effective vehicle for the mobilization of natural
resources for the mobilization of natural resources for the national
development efforts.
iv. Insurance
Industry is an important employer of Labour thus provided Joint opportunities
for the teeming population of this country and helping to solve the
unemployment problems.
Therefore with the
regards to the economy of which is in a state of depression, Insurance
functions could be linked as a tool for looking into this depression since the
industry is also in Line with the financial activities of the country.
Insurance Companies provide
the service of Financial sustenance to other participants in the
economy. They do this by ensuring the financial survival other
business in the event of the unfortunate occurrence of insurable
risks. Without such financial compensation as offered by the insurance
industry, many a business would have been out of existence, with all the
attendant economic waste.
The economic development
of any nation is closely related tot he behaviour of individuals living in that
country as regards how much to save and how much to consume from their earned
income.
From the national
accounting point of view savings equals investment. It is also true that
for a country where the inhabitants make a consistent effort to save a part of
their disposable personal income, such a country will be economically viable
that is ignoring the uncontrollable variables such as political instability and
depression.
Savings are worthwhile
to the extent that they are sensibly and Judiciously employed in the various
development projects with the economy thus contributing to the gross domestic
product which determines the standard of living in a particular country.
It is for this reason that the government encourages people to save through
government approved institutions including the insurance
companies. There are advantages to be derived from creating in the
individual, a sense of thrift by saving money through easy monthly installments
and the collection into a pool, the otherwise inevitable individual
contributions which provide a regular source of investment loan in the
economy.
1.1
STATEMENT OF PROBLEM
Inspite of its enormous
contributions to the economic development of Nigeria, the insurance Company
remains grossly misunderstood.
A good inquiry into the
genesis of the problem in insurance Company will reveal that the problems is
traceable to three institutions namely:- The Insurance industry, the media and
the public.
It is in good order to
start by considering how the insurance Company has contributed tot he
problem. Basically, the strongest negative influence on the insurance
companies in Nigeria the literacy level of the public and the inability of the
insurers to communicate with them. Out of over 180 registered companies
in Nigerian, only a very few have officers or units engaged in Public
relations.
The ordinary citizen is
yet to clearly understand the principles citizen is yet to clearly understand
the principles and practice of insurance while the so called elite in he
society are ignorant of ways in which insurance companies operate.
How has the media
contributed tot he problem if insurance Companies being misunderstood ?.
There are about 86
dailies and week lies as well as 38 magazines in this country, yet on
insurance. On a closer examination, one finds out that most of the
reports published by the sampled newspapers were mainly routine and uniformed
in that they lacked depth.
Industry through numour
mongering. The members of the public have spread so much general suspicion
and distrust about the industry that everything about insurance in this country
now appear to be son uninteresting and far form being genuine. Because they are
not clear about the principles and practice of insurance, their minds are all
ready made up as to what insurance is all about. They have become so
based that and Nigerian even though Ignorant of the main gains of insurance
would not want to talk about it as a subject more so buying it. There is
or curse, the issue of delay in the settlement of claim which has in its own
way painted the insurance industry black.
1.2 PURPOSE
OF STUDY
Insurance has
indeed contributed to the economic development of Nigeria inspite of all the
strong negative influences attached to its continued existence.
The following are the
purpose of the study.
- it
is already a know fact that the insurance companies plays a vital role in the
economy of Nigeria, this work is set out to established how much
contribution. The industry has made and in what area.
- This
work will also determine the effect contributions of the insurance companies on
the economy of Nigeria.
- To
make recommendation based on findings.
1.3
SIGNIFICANCE OF THE STUDY
This study will be of utmost importance to Nigeria populace in that it will
contributed to their under standing of the principles and practice of insurance
and the need for it. It will also help in clearing the mountain of bias which
is already filed up in the minds of the public about insurance.
This research work highlights the glaring problem affecting the operation of
the insurance industry in Nigeria and also goes further to explain he problem
and how it can be solved.
Through the help of
these identified problems, the insurance company would be able to come up and
therefore know the possible areas of improvement in order to bring a lasting
solution the problem of bad image of the industry before the public.
The timing of this research work is very appropriate particularly as the decade
is gradually coming to an end when Nigeria and other nations of the world
anticipates there will be everything for all including insurance.
The relevance of this
study this time it therefore indispensable.
1.4
STATEMENT OF HYPOTHESIS
In
order to progress in this research work, the following hypothesis were
formulated:
1. Whether
the Insurance literacy level of the pubic affects their desire and demand for
insurance products and service.
2. Whether
the insurance companies has been playing an appreciable role in the economic
development of Nigeria
3. Whether
the Insurance accepted level is Nigeria is low
4. Whether
the insurance professionals are doing their best in Nigeria economy.
1.5 SCOPE
OF THE STUDY
The scope of this research work covers the role of the Insurance Companies in
the economic development of Nigeria.
The topic of this work
is a very interesting area of study ands Nicon Insurance Plc Enugu is used as a
case study.
A lot of problems were
encountered by the researcher which militated against the progress of the
work. Some of the problems include:-
i. Lack
of adequate materials dealing in an up to date findings. The created a lot of
problems as the researcher needs the most recent materials to work with.
ii. Most
insurance companies are not quoted in the stock exchange market and they are
not willing to make available their animal reports to the strangers.
iii. At
a points it took only the grace and the miracle working power of God for the
finding of this research work to be possible.
1.6 DEFINITION
OF TERMS:
1. Insurance
interest Þ this is the legal right to insure.
2.
Re-Insurance Þ This is any
class of insurance to be
treated as insurance business of the class t which such
business would have belong if it had been under
written
by the reinsurer.
3. Insurance
Brokers Þ This is a proffessional insurance
practitioner who works independently to link individuals
and companies who need insurance with insurers best
qualified to meet insurance the insurance needs of those
individuals or companies.
4. Moral Hazard Þ
This is the right of a person who has indemnified another under a Legal
Obligation to stand in the place of the other person and avail himself of all
the rights and remedies available tot heat other person whether already
enforced or not.
5.
Premiums Þ This is the monetary
consideration
passing form the insured tot he insurer for their
undertaking to pay the sum insured in the event
of the
risk insured against happening.
| Department | Banking and Finance |
| Project ID Code | BFN0052 |
| Chapters | 5 Chapters |
| No of Pages | 125 pages |
| Methodology | Chi Square |
| Reference | YES |
| Format | Microsoft Word |
| Price | ₦4000, $15 |
|
|
|
| Contact Us On | +2347026816414 |
| Contact Us On | +07026816414 |
|
|
|