IMPACT OF GOVERNMENT POLICIES IN REGULATING THE ACTIVITIES OF NIGERIA INSURANCE INDUSTRY ON YOUR COMPANY APPROVAL

IMPACT OF GOVERNMENT POLICIES IN REGULATING THE ACTIVITIES OF NIGERIA INSURANCE INDUSTRY ON YOUR COMPANY APPROVAL

TABLE OF CONTENTS

Title

Approval………………………………………………………………..i

Dedication…………………………………………..…………………..ii

Acknowledgement……………….……………………………………iii

Abstract………………………………………………..………………iv

Table of contents……………………………….………………………v

CHAPTER ONE

Introduction ………………….….………………………………1

1.1     Background of the study………..……………………………….1

1.2     Objective of the study…………………………..……….……….9

1.3     Purpose of the study…………….…………….……….……….10

1.4     Significance of the study……………………………………….11

1.5     Scope of the study…………………………………………..….12

1.6     Definition of terms ………………………..………………..….12

CHAPTER TWO

2.0     Literature review………………………………….……………14

2.1     The origin of the insurance industry…………………………14

2.2     Development of modern insurance business in Nigeria………16

2.3     The insurance  market  and intermediaries …………………..19

2.4     The socio-economic significance of insurance ……………….20

2.5     Structure and performance of the insurance industry …….……23

2.6     Government regulation of the insurance companies ……25

2.7     The impact of structural adjustment programs on insurance companies operation in Nigeria ………………37

CHAPTER THREE

3.0     Research methodology  …………………………………..39

Introduction  …………………………….………………….39

3.1     Restatements of research question and hypothesis ……39

3.2     Research design  …………………………………..…………41

3.3     Sources of Data  ……………………………………………41

3.4     Population of study  …………………………………………42

3.5     Sample size / Design and procedure  ………………………44

3.6     Data collection instrument / process ………………….…45

3.7     Data presentation and analysis on techniques …………46

3.8     Limitation of the methodology  ……………….……………47

CHAPTER FOUR

• Data presentation and analysis ……………………………49

4.1     Presentation and analysis of data  …………………………49

4.2     Hypothesis testing  ………………………….………………56

4.3     Analysis of result  ……………………………………………58

CHAPTER FIVE

5.0     SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION

5.1     Summary of findings  …………………………….…………60

5.2     Recommendations  ………………………..…………………62

5.3     Suggestions for further research  ……………………………63

5.4     Conclusions  …………………………………….……………64

References  ……………………………….…………………..65

Appendix  ……………………………………………..………66

CHAPTER ONE

1.1     BACKGROUND OF THE STUDY

“Risk is a phenomenon which has been in existence since the beginning of the world. Risk exists whenever the future is unknown” (Lemon 1989: 17). This means that the word implies some element of doubt about the future and the outcome may be worse than what it had been at the moment. This man in his daily operations could be viewed as a risk manager, in that man does his best possible to reduce, eliminate, avoid, retain or share risk where they are present.

Though there were some forms of risk management before the advent of insurance companies in Nigeria such as the extended family system, age grade association and others. Insurance in its modern form was introduced into Nigeria by British.

In 1921, the Royal Exchange Assurance Company was established and it was the first insurance company to open full branch in Nigeria. In 1949, three other companies emerged. In 1958, Africa insurance company. By 1965, the number of insurance companies rose to 70. In 1977, the Nigeria Re- insurance company was established as a federal government owned insurance company. Nigeria was however under the British colonial rule up to 1960 when she gained her political independence and as a developing country. From 1960 to date a lot of insurance companies came into operation. Insurance is a modern method of sharing loss or spreading risk lightly over a great number of people so that the few unfortunate ones or persons who sustain or suffer loss do not heavy financial loss as a result of their misfortune to the community. The insured pay premium into a common pool outcome of which the unfortunate few who suffer loss are compensated.

The secondary function of insurance companies includes:

1. Provision of loans for building on the security of a life policy.
2. Encourage and promote commercial enterprise men and industrialist
3. The accumulated sum of money by insurer reinvested to state approved securities and this helps to provide the state with a steady flow investment funds with which the state can provide development and promotions to the local industries which will be of benefit to the community.

Insurance is a contract whereby a person called the insurer or assurer agrees in consideration of money paid to him or her known as premium by another person called the insured or assured to indemnify him against loss resulting to him on the happening of certain events. However, it was known that risk exist whenever the future is unknown and therefore insurance exist primarily to combat the adverse effect of risk.

The purpose of insurance is to compensate or indemnify the victim for his financial loss. It should be noted here that the insurance neither eliminate the loss nor stops the disaster from……..

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