Insurance Industry And Risk Management
This research work looked at the insurance industry and risk management in Nigeria (A case study of NICON Insurance Corporation).
It is aimed at X-raying the inherent problems associated with the adjustability and adaptability of risk management.
The essence of risk management is to evaluate all pure risk exposures, insurable or uninsurable and develop the method for handling them.
INTRODUCTION
1.1 GENERAL OVERVIEW OF THE STUDY
The uncertainty which doubt the future is a significant that normally bring in the element of risk in any business arrangement. The existence of risk in any concern simply means that certain loss must arise if the risky event happens. A contract of insurance broadly happens. A contract of insurance, broadly speaking is a contract in which one party called the insurer agrees to pay a given sum of money upon the happening of a particular event insured against to the other party called the insured or assured for a consideration called premium.
In other words, insurance is a risk transfer mechanism by which an individual or corporate body shifts some or all the uncertainty encountered in daily activities into the shoulder of insurers in return for the payment of an agreed amount called premium which is usually very small compared to the potential loss. In the effect, what the insuring public and prospective buyers to be continuity in life without set back or normally occasioned by insurable risk or peril.
Insurance companies provide the service of financial sustenance to her participants in the economy. They do this by ensuring the financial rival of other business in the event of the unfortunate occurrence of insurable risk. Without such financial aid as offered by the insurance industry, many a business would have been out of existence. The economic development of any nation is closely related to the behaviour of individuals doing in the country as regard how much to save and how to consume with their earned income.
1.2 STATEMENT OF PROBLEM
The insurance industry is very relevant to the growth and development of very economy, it does not exist like every other insurance institutions without facing some constraints. Some of these problems include.
• Lack of awareness of the activities of the insurance industry.
• The reluctance or insurance companies to pay just claims.
• Unqualified salesman, agents and other insurance canvassers.
• The existence of fake, quack and mushroom insurance companies.
There are insurance companies in the country that are well require by the necessary organizations but still lack the desired technical, financial and management. To mention but a few.
1.3 OBJECTIVE OF THE STUDY
The study is channeled towards examining the roles of insurance companies play in the economy of Nigeria. It is therefore aimed at the following.
a. To access the performance towards the economic development of Nigeria.
b. To identify the possible factors militating against the effective pursuit of the objective of the insurance industry.
c. To proffer solutions to the identified problems e.t.c
1.4 STATEMENT OF HYPOTHESIS
Ho: It is possible for insurance industry to plan its subrogation
Hi: It is not possible for insurance industry to plan its subrogation
HYPOTHESIS II
Ho: Risk deregulation can ruin the insurance industry
Ho; Risk deregulation cannot ruin the insurance industry
1.5 SIGNIFICANCE OF THE STUDY
This study will be of utmost importance to the Nigerian population especially students studying insurance, in the sense that it will contribute to their understanding of the principles and practice of insurance and the need for it.
It will also help in clearing the mountain of bias, which is already pilled up in the mind of the public about insurance industry and its operation.
This research work highlights the gleaning problems affecting the operations of the insurance industry in Nigeria and goes further to explain how the problems can be solved. As the problems being stated, the insurance would be able to know the areas to improve on possible method(s) to apply in order to cope with them.
1.6 THE SCOPE OF THE STUDY
The scope of this research work covers the insurance and risk management in Nigeria, using NICON Insurance Corporation as a case study.
1.7 LIMITATION OF THE STUDY
The researcher in the course of carrying out the research work encountered few problems, such problems includes:
• Lack of adequate materials dealing on current events and dates. Most of the materials available were outdated.
• Lack of fund to finance the research almost hindered th work.
• Time factor: There was not enough time to carry out proper research on the work.
1.8 DEFINITION OF TERMS
In other to make the work easy for understanding for any user, some of the term used have bee extensively defined, such as:
• ASSURED: the person covered by the insurance contract.
• ASSURER: insurance company granting insurance protection to the insured.
• BROKER: A person who for consideration, solicit and negotiate, contact of insurance for he insured.
• CLAIM: A demand by the insured payment under his policy.
• COVER: Protection provided by insurance.
• CONTRACT: An agreement between the contracting parties which will rise to enforceable right and obligation.
• DECLARATION: Statements giving information about the insured risk.
• INSURANCE POLICY: A written contract between a person and the insurance.
• LOSS: A loss to an extent means the reduction or disappointment of value.
• RISK: A situation or event in which the probability o an outcome can be determine.
• RISK AVOIDANCE: To get out or escape from risk.
• WARRANTY: A stipulation in the policy relating to the nature of the contract policy.
Title page
Certification
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE
1.0 Introduction 1
1.1 General overview of the study 1
1.2 statement of problem 2
1.3 objective of the study 3
1.4 statement of hypothesis 4
1.5 significance of the study 4
1.6 scope of the study 5
1.7 limitation of the study 6
1.8 definition of the study 6
CHAPTER TWO
2.0 Literature Review 8
2.1 Introduction 8
2.2 risk management and insurance 10
2.3 insurance underwriting 13
2.4 The role of insurance industry in Nigeria 15
2.5 factors militating against insurance Companies
in Nigeria 16
2.6 Measures of solving insurance problems 17
2.7 Insurance contract 18
2.8 Insurance claims 21
CHAPTER THREE
3.0 Research methodology 23
3.1 Research design 23
3.2 sources of data 24
3.3 sample design 28
3.4 research population 28
3.5 techniques for data analysis 29
CHAPTER FOUR
4.0 Data presentation and analysis 31
4.1 data presentation 31
4.2 data analysis 32
4.3 tests for hypothesis 37
4.4 interpretation of result 40
CHAPTER FIVE
5.0 Summary, conclusion and recommendation – 42
5.1 summary 42
5.2 conclusion 43
5.3 recommendations 44
Bibliography 46
Appendix 47
Questionnaire 48
The Title Page should be the first section of your project “Insurance Industry And Risk Management”, providing essential details like the project title, your name, your supervisor’s name, the institution, and the submission date. After that, the Abstract offers a brief summary of your project, touching on its purpose, methods, results, and conclusions in 150-300 words. The Acknowledgments section is where you can thank those who supported your research, such as your supervisor, peers, or organizations that provided resources.
Next, the Table of Contents organizes the Insurance Industry And Risk Management by listing its chapters and sections, along with page numbers for easy reference. The List of Figures and List of Tables help guide readers to specific visual elements like graphs, charts, or tables included in the document. There should also be an Abbreviations and Glossary section to explain any specialized terms or acronyms, making the content clearer to readers unfamiliar with the technical language.
The main body of the Insurance Industry And Risk Management should start with the Introduction, which provides background information, outlines the research problem, states your objectives, and gives a brief overview of your research methods. Following that, the Literature Review offers an in-depth look at previous research relevant to your project, identifying gaps your study aims to address. The Methodology section then explains the research design, tools, and data collection methods you used to conduct the project and analyze the data.
In the Results and Discussion section, you present your findings and discuss them in relation to the Insurance Industry And Risk Management research questions or objectives, often using tables or charts to help explain the data. The Conclusion summarizes the key results, discusses their implications, and suggests possible directions for future research. You may also include recommendations based on your findings, offering practical advice for improvements or applications. Finally, the Insurance Industry And Risk Management project should include a References or Bibliography section to list all the sources you cited, as well as Appendices for any additional material. A Statement of Originality is often included to confirm the authenticity of your work