TABLE OF CONTENTS
Title page i
Approval sheet ii
Dedication iii
Acknowledgments iv
Preface v
Table of contents vi
CHAPTER ONE
INTRODUCTION
1.0 Historical
Background 1
1.1 Aims
and Objectives 3
1.2 Achievements
of the Company 4
1.3 The
Principle Guiding Insurance Business 5
1.4 Importance
of the study 6
1.5 Definition
of some Insurance terms 7
1.6 Limitation
of the study 11
1.7 Organization structure of Gateway Insurance Plc 13
CHAPTER TWO
2.0 Literature
Review 16
2.1 Concept
of life Insurance 19
2.2 Field
Experience 21
2.3 The impact of each insurance policy to the
Development
of insurance business 22
CHAPTER THREE
3.0 Data
Collection 24
3.1 Various classes of some insurance policy
and the
categories of people that takes each
policy 27
- To
know the insurance policy that recorded the largest number
of customers from 2004-2009 with
reference to sum assured. 29
CHAPTER FOUR
4.0 Analysis
of Data 33
4.1 Spearman’s
Rank Correlation method 36
4.2 Method
of Analysis used 39
4.3 Moving
Average Method 40
4.4 Least Square Regression Analysis 42
CHAPTER FIVE
5.0 Summary
of Finding Discussion 53
5.1 General
Inference 53
5.2 Recommendation
and Conclusion 55
Reference 57
CHAPTER ONE
INTRODUCTION
1.0 HISTORICAL BACKGROUND
There exist risks in all forms of
business organization since there are many factors over which man has no power.
Man cannot control for example, the force of nature or some of the conduct of
their human beings.
Infact, all human endeavours has its
attendant risks and hazard and one would wants to cover himself against these
hazards hence this process is generally known as insurance.
The probability of these risks can be
calculated mathematically and it is against these background that insurance can
be effected. Insurance is based upon the polling risk. There is a common fund
called premium to which the insured contributed to an it is from these that
payment is made to those who suffer loss.
The Gateway Insurance Company Plc was
established by the Kwara State Government in 23rd September 1970 about two decades ago as a
limited liability company. The company is licensed to transact all classes of
insurance including accident, life and pension when it was fully incorporated.
The company was formerly owned by the
Kwara State Government but due to the creation of new state with some parts of
old Kwara State created as Kogi state and some
part also given to Niger
state, the share capital is now owned by the three state governments with Kwara State
having the largest share. Also some local government in the state has share in
the company.
According to Mr. A. Toyosi, the
secretary to the Deputy General manager, Administration, the company has almost
completed its process of privation and its shares will soon be in the markets
for sales. When the company started operation in 1970, it has only three
branches with the headquarters at Ilorin
and other branch offices at Lagos
and Kaduna.
But as at today the company now has
about 17 braches offices spread all over the country with a competent and
highly skilled staff strength of abut 200 which makes it one of the leading
insurance company in Nigeria. Among the reason that motivated the old Kwara
state to set up the company was that it will help to generate additional
revenue when the state was newly created in 1967. Since its establishment, the
company has not only being meeting the aspiration of the state government but it has also
improved the social and economic life of the people of the state and Nigeria as a
whole. The company is also rendering excellent services to various business
organization against unexpected losses.
1.1 AIMS AND OBJECTIVES
The aims and objectives of carrying
out this project work are the following:
1. To find the effect of commission charged
on sum assured of the company and the rate percent charged on the various
policies of the company.
2. To find the rate at which people insure
their properties e.g. life insurance, marine insurance, fire insurance e.t.c
3. To find which insurance policies has the
largest number of customers with respect to sum assured and commission
received.
4. To make prediction on sum assured on
various policies for the future to determine the market trend/sales
1.2 ACHIEVEMENT OF THE COMPANY
Since the company started operation
over two decade’s age, it has made an outstanding progress which makes it one
of the leading insurance companies in Nigerian.
Although the company was authorized
to transact all insurance business when established but this could not be
achieved as a result it some problems ganging from inadequate skilled
personnel, limited capital and other related problems.
Since there has been significant
improvement in its services, the company is now waxing stronger by transacting
fully all classes of insurance. This can be as a result of the skilled
personnel and experts in insurance business now employed by the company.
The classes of insurance business
transacted by the company includes life policy personal scheme. Other are the
non-life assurance business like, motor, fire and special perils which covers
tornado, rainstorm, flood, policies in the Gateway Insurance company also
covers Goods interansit, marine, personal accident guarantee, cash interansit
and Burglary.
There is the other new insurance
business the company is going into called Engineering Insurance which covers
machinery-breakdown. Also due to the different location of its customers. The
company has established about 17 branches spread all over the country with a
capital base of over N2million.
1.3 THE PRINCIPLES GUIDING
INSURANCE BUSINESS
The principles guiding insurance
business in Gateway Insurance company generally, which however accounted for
its leading role in insurance business are the following:
i. PRINCIPLE OF INDEMNITY: Under this principle the insurance company tells the assured that he/she would be compensated if any loss or damage occur to him so that he will not feel the impact of such loss.
ii. PRINCIPLE OF SUBROGATION: This is the principle where by the insurance company gives the customer law that he should make sure that another person does not use the property insured with them such as motor car, radio tape e.t.c
iii. PRINCIPLE OF UTMOST GOOD FAITH: this is the principle of insurance where the assured are warned as seriously on the risk inherent in telling lies during the investigation which is likely to be carried out by the company when a customer suffers any loss.
STATISTICAL ANALYSIS OF INSURANCE OPERATION IN KWARA STATE (A CASE STUDY OF GATEWAY INSURANCE COMPANY PLC ILORIN FROM 2004 TO 2009)
