COMPARATIVE ANALYSIS OF AMOUNT OF PREMUIM PAID AND CLAIMS SETTLED ON FIRE, LIFE AND MOTOR POLICIES: A CASE OF KWARA INSURANCE BROKER LIMITED, KWARA STATE

Abstract

This project is on comparative analysis of amount of premium paid and claims settled on fire, motor and life policies in Kwara Insurance Broker’s Limited, Ilorin from 1996-2005 was aimed to analysis the trend of insurance in Nigeria as regards to the three policies mentioned above regression analysis and correlation was use to analyse the data. Sequences to the analysis carried out, it revealed that the amount of claims settled does not depend on the amount of premium paid. The life policy which shows that no awareness is being created to prevail its importance. It can be seen from the three policies that there are fluctuations in premium paid. Premium paid has fluctuated over the years in the motor polic. Eventually, the analysis revealed that the amount of premium paid and claims settled on each of the policies are not equal, therefore the premiums paid have highest values. Based on these findings, we recommend to the company that it should encourage its staff to embark on public enlightenment from time to time and there is need to employ the services of qualified statisticians for the planning and predication towards their business, so that the organization will not collapse.

CHAPTER ONE

1.0    INTRODUCTION

We can define insurance in two major contexts as an economic or social institution designed to perform certain function and as a legal contact between two parties. It can also be defined as a pool of risk whereby the unfortunate ones are being compensated. There unfortunate few who funds themselves victims of loss of properties or accident.

It is not only for the private ones but also for the commercial and industrial concern. It is carried out all over the word.

The practice, organization and management of insurance in modern items came with the advert of the colonialist. The majority of these companies were of British origin. British insurance companies soon appointed agents to cater for their business in Nigerian. Such agents consisted of bank and traders but later, Nigeria Trader and merchants were given power to secure insurance business, issue cover note and give helping hands in claims settlement.

There are a lot of insurance companies registered in Nigeria of which Kwara insurance brokers limited Ilorin owned by Kwara State Government is one.

Insurance companies are of different kinds. There are some specialists in one or more classes of insurance such as life, fire, marine and so on. In this work, we are going to limit ourselves to the fire, motor and life policies.

To compare the three arms of insurance policies on the amount of premium paid and claims settled on fire. The fire policy is the first type of insurance policy developed and has played a significant role in insurance for many years. It is declining as more contracts are being re-written but the provision contains in the fire policy are still important.

No matter careful someone may be to prevent fire a certain number of losses with occurred. While, theoretically, most fire losses are preventable so claims and premium amount are collected from the people insure themselves on fire before hand. There was little demand for fire insurance in its early day. This was categorized under non-life business.

Life policy is usually issued on a level of premium basis, which means, that the same premium is charged throughout the duration of the contract.

It was once a starting innovation since it was reasoned that due to that rising so that if the issued dies before the higher demand for the insurance complete it.

Motor policy has the higher demand for the insurance policies and it also played significant role in insurance for many years.

1.1    HISTORICAL BACKGROUND

The Kwara Insurance Brokers Limited was incorporated as foundation insurance company to transact life assurance business in 1989. On May 20th  1999, after the acquisition and restructuring in ownership and management, the name was changed to Standard Life Assurance Company Limited. It commenced full operation in January 200. Standard assurance life has successfully complied with the National Insurance Commission insurance consolidation/ recapitalization policies as at February 28, 2007.

Being a specialist company in life, motor, fire insurance products, it focuses its business on savings and investment, linked life, motor fire assurance as well as group life and annuity policies. Its core values and qualities centre on product innovation and excellent customer services.

Brokers is a member company of standard Alliance groups, a high profile and technology driven financial services group in Nigeria having interest in Banking, person, funds management, stock brokering, manufacturing and information technology. The company is a subsidiary of brokers limited insurance whose shareholding structure is varied and diverse with few corporate bodies including Fin-bank holding above 20% of the issued share capital of the company.