THE ROLE OF NATIONAL INSURANCE COMMISSION (NAICOM) IN THE PROMOTION OF NIGERIA INSURANCE MARKET OPPORTUNITY

THE ROLE OF NATIONAL INSURANCE COMMISSION (NAICOM) IN THE PROMOTION OF NIGERIA INSURANCE MARKET OPPORTUNITY

ABSTRACT: The Nigerian insurance market, like that of so many other countries around the world, has a long way to go in serving the needs of the ordinary people. Indeed, insurance is currently still very much for the elites and the formally employed. The insurance market here encountered challenges. The major is the issue of image, and this is being tackled headlong by the national insurance commission and other bodies in the industry like the Nigerian insurance association. The biggest challenge of the insurance industry is how to deepen insurance. The research work is design to examine the “role of national insurance commission in the promotion of insurance market opportunities in Nigeria”. The work portray the problems associated with insurance market in Nigeria; among when are low level of regulatory compliance by the insurance practitioners, absent of new product innovations, image problems, government inconsistency in policy formulation and so on. The objective of the study were also stated which are to identify the role of national insurance commission in the promotion of Nigerian insurance market; to examine the impact of recapitalization on the insurance industry and to identify the problems hindering the smooth running of insurance business in Nigeria. The research methodology and procedures at which the research was executed were examined.

TABLE OF CONTENTS

CHAPTER ONE – INTRODUCTION                         1

1. Background of the Study                                         1
2. Statement of Problem                                      4
3. Objectives of the Study                                    4
4. Research Questions                                          5
5. Significance of the Study                                         6
6. Scope and Limitation of the Study                     7
7. Definition of Operational Terms                         8

CHAPTER TWO – LITERATURE REVIEW                10

2.1  Development of Insurance in Nigeria                  10

2.2  Nature of Insurance/Meaning of Purpose                    12

2.3  National Insurance Commission Overview            15

2.4  Functions of NAICOM                                       18

2.5  Powers of the Commission                                20

2.6  Power of the Commission Board                        22

2.7  Market Development and Restructuring Initiative  23

2.8  Benefits of MDRI to Insurance Market                 23

2.9  Contents of MDRI Programme                                  24

2.10 Problems of Insurance Market                                  29

CHAPTER THREE – RESEARCH METHODOLOGY            31

3.1  Source of Data                                                       31

3.2  Population of Study                                          31

3.3  Sample Size                                                    32

3.4  Instrument Used for Data Collection                   33

3.5  Validity and Reliability of Instrument                  33

CHAPTER FOUR – FINDING AND DISCUSSIONS    35

4.1  Summary of Findings                                       35

4.2  Discussion of Findings                                      36

CHAPTER FIVE – CONCLUSION AND RECOMMENDATIONS

5.1  Conclusion                                                      38

5.2  Recommendations                                           40

5.3  Suggestion for Further Study                             41

Bibliography                                                    42

Appendix                                                        44

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

The contribution of insurance to economic growth is huge and unlimited. Insurance is of great importance to a modern society and in fact, economic growth is characterized by the soundness of a nations insurance market. Insurance promotes financial stability and reduces anxiety; it can substitute for government security programmes, facilitates trade and commerce; mobilizes saves; enables risk to be managed more efficiently; encourages loss mitigation and fosters a more efficient capital allocation.

THE ROLE OF NATIONAL INSURANCE COMMISSION (NAICOM) IN THE PROMOTION OF NIGERIA INSURANCE MARKET OPPORTUNITY