THE IMPLICATIONS OF OWNERSHIP STRUCTURE OF INSURANCE COMPANIES ON POLICY HOLDERS PATRONAGE

THE IMPLICATIONS OF OWNERSHIP STRUCTURE OF INSURANCE COMPANIES ON POLICY HOLDERS PATRONAGE

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION                                                      1

1. BACKGROUND OF THE STUDY                       1
2. STATEMENT OF THE PROBLEM                     2
3. OBJECTIVES OF THE STUDY                          3
4. RESEARCH QUESTIONS                                 4
5. SIGNIFICANCE OF THE STUDY                       5
6. SCOPE AND LIMITATIONS OF THE STUDY     6
7. DEFINITION OF OPERATIONAL TERMS           6

REFERENCE                                                   8

CHAPTER TWO

REVIEW OF RELATED LITERATURE                    9

2.1   AN OVERVIEW                                                 9

2.2   HISTORY OF THE TOPIC OF STUDY                        9

2.3   DEVELOPMENT OF INSURANCE INDUSTRY

IN NIGERIA                                                      11

2.4   OWNERSHIP OF INSURANCE COMPANIES     16

2.5   INDIGENIZATION POLICY AND ITS EFFECTS

ON THE COMPANIES                                       17

2.6   THE EFFECTS OF DECREE ON INSURANCE

PRACTICE IN NIGERIA                                     19

2.7   THE EFFECTS OF THE BASIC PRINCIPLES

OF INSURANCE                                               21

2.8   PROBLEMS OF INDIGENOUS PRIVATE

INSURANCE COMPANIES                                        23

2.9   PROSPECTS OF ADEQUATE MANAGEMENT

OF INSURANCE COMPANIES IN NIGERIA               32

REFERENCE                                                   34

CHAPTER THREE

RESEARCH METHODOLOGY                                 35

3.1   SOURCES OF DATA                                        35

3.2   POPULATION OF THE STUDY                          35

3.3   INSTRUMENT USED OR THE STUDY              36

3.4   VALIDITY OF THE INSTRUMENT USED           37

3.5   RELIABILITY OF THE STUDY                           38

CHAPTER FOUR

SUMMARY OF FINDINGS                                               39

4.1   FINDINGS                                                                39

4.2   DISCUSSION OF FINDINGS                             40

CHAPTER FIVE

5.1   CONCLUSION                                                  41

5.2   RECOMMENDATION                                               42

5.3   SUGGESTIONS                                                        43

BIBLIOGRAPHY                                                44

APPENDIX                                                       45

ABSTRACT

This study is titled the implications of ownership structure of insurance companies on policy holders patronage. I looked into the problem that often associates with ownership structure of insurance companies in Nigeria like lack of fund for expansion in order to carryout its day to day activities, bad records of some past insurance companies in Nigeria, the background of the company and lack of governments total supervision over the companies. I equally looked into the objectives of the study which include identifying the effect of each ownership structure and its implication on the policyholder and also identifying the possible solution in tackling the effects of policyholder’s patronage to private indigenous companies. Through the literature review, it should be noticed that work has been done on the classification of insurance business in Nigeria, the development of insurance industry, indigenization policy, decrees, basic principles of insurance and their effects on the insurance industry. prospects of adequate management of insurance companies is also highlighted. The research so far done which relates to this work has been carried out without consideration for the understanding of ordinary investors who have no knowledge of the legal aspect of ownership in an insurance industry. I equally looked into the research methodology which includes sources of data collection. The sources include primary sources and oral interview. It further looked at research instrument used and validity of the instrument. I also looked at summary of findings which include findings and discussion of findings. furthermore, I looked at the conclusions, recommendations and suggestion for further studies. This project tends to review the structure of ownership of insurance companies in the country and analyze its implications on policyholder – (customers) patronage, this will centre on the attitude of owners towards maintaining good insurance customer’s relationship, and how the policy holder claims and pays premiums.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Insurance plays a vital and important role in the economic development of the society. It pools funds for economic losses of the society from where It can indemnify the policyholders should the claim arise at any time.

The wide spread of insurance industry in Nigeria was traditionally based on the mutual solidarity that made up the insurance business structure.

This work captioned “the implication of ownership structure of insurance companies on policyholder patronage” is trying to pin point the reaction of policyholders over the ownership of insurance companies throughout the federation.

THE IMPLICATIONS OF OWNERSHIP STRUCTURE OF INSURANCE COMPANIES ON POLICY HOLDERS PATRONAGE