MANAGEMENT
OF INSURANCE COMPANIES IN NIGERIA
A CASE STUDY OF UNIC INSURANCE PLC
ABSTRACT
This research work was aimed at determining the impact on
management of insurance companies in Nigeria with particular reference
to UNIC INSURANCE PLC
A structured
questionnaire made up of a little combination of some dictatorship and open
ended questions was developed and distributed to a total of 80 male and female
employees of UNIC INSURANCE PLC.
The data
collected were analyzed using percentages, mean and rank order. Based on the above major findings include;
1, That the
human and non-human resources available in the insurance
company are not adequate.
2. That UNIC
INSURANCEPLC has not experienced any form of friend.
3. Under
interference and insanity of the job/position of supervisions affect the objetinty of their reports and recommendations.
4. That
non-implementation of previous reports affect the function of
supervisors.
Based on
these findings, the following efficiency and effectiveness
in the management of insurance companies.
a.
That
Insurance companies should use delegation as a supervisory strategy to be in
professional touch with all the department in the insurance company.
b.
A programme of in-service education and
training should be given to staff on regular basis to enable them get abreact
with the changing demand of time him.
c.
Insurance
companies should consistently organize seminars .Staff meeting, individual
conferences, professional lectures and provision of office bulletins
d.
Staff
safety and welfare packages must be adequately assured for proper continuity.
TABLE OF CONTENT
Title page ii
Approval page iii
Dedication. iv
Acknowledgement v
Abstract vi
Table of contents viii
CHAPTER ONE
Introduction 1
1.1
Background
of the study 1
1.2
Statement
of problems 3
1.3
Purpose
of the study 4
1.4
Test
of Hypothesis 5
1.5
Significance of the study 5
CHAPTER TWO
Review of related literature 8
2.1
insurance
company organization 8
2.2
Under
writing 11
2.3
Theory
of rating 21
2.4
Premium
rating in non-life insurance 23
2.5
Premium
change in life insurance 25
2.6
Sources
of insurance company fund 27
2.7
The
investment of insurance company fund 30
2.8
Insurance
company account 31
2.9
Summary
of the review literature 32
CHAPTER THREE
Research methodology 34
3.1
Area
of study 34
3.2
Population 34
3.3
Sample
and sampling procedure 34
3.4
Instrument
for data collection 36
3.5
Validation
of research instrument 37
3.6
Reliability
of research instrument 38
3.7
Administration
of the research instrument 37
3.8
Method
of date analysis 39
CHAPTER FOUR
Data presentation and results 41
4.1
Date
presentation and analysis 41
CHAPTER FIVE
Discussion of results 48
5.1
Discussion
of findings 48
5.2
Conclusion 51
5.3
Recommendation 52
5.4
Limitation
of study 54
Appendices 56
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
The management of an
insurance company, like any other business outfit, has an aim or purpose to pay
claim in return for payment of premium. The insurance company undertake
numerous activities in their operation usually assessing the extent to which
the risk presented in any respect departs from normal and if so, to what extent
additional hazard can be mitigated at what rating consideration. A process known as premium rating is used to
decide vohat price you should change to. The premium price should reflect the
claims list and expenses associated with the contract but also include an allowance
for the insurer profit margin, this allowance depends on the level of
competition in the relevant insurance market.
Like every other
business if the insurance companies want to increase the amount of business
they undertake (at the right price) and attempt to do this involves different
system since company differ in their degree of reliance on a direct sales force
rather than using brokers and also in the amount they spend on
advertising. Also insurance company
cannot pay all claims out of revenuer received for premium and investment
income, because the timing of these payments and receipts cannot be
co-coordinated, they must therefore maintain a fund that can be used to pay
claims, such funds are also necessary in the case claims are unexpectedly large. In many classes of insurance fund are
accumulated carefully investment of these funds will allow insurers to earn
interest income and make capital again.
More so, the insurers may be aware that
certain potential claims payment may exceed his financial resources. He will therefore wish to pass on some of the
liabilities for the claims to another insurer by buying insurance like other
enterprise, insurers make payment to creditors (claims to insure commission
agents) and receive money from debtor (such as premiums) They ought then
compile accounts for internal management, shareholders and the taxation and
supervisory authorities. A major problem with these is that insurers
liabilities that the potential claims payments may not be know and must therefore
be estimated. Insurance companies must
pay co-corporate with tax value added tax and capital gain tax.
1.2
STATEMENT OF PROBLEMS
i Based
on the fact that every successful company weather
profit or non-profit oriented in Nigeria lies on its management.
ii. Secondly goes majority of Nigerians do
not appreciate the role insurance industry pay in the economic development of this country.
iii. Another striking factor that off this
research work is the
fact that our people appear not to understand the impact insurance could have in national development.
v. There is also the problem of non-challant
attitude of most Nigerians in embracing the idea of insurance coverage as one of the
veritable instrument for the national
development in developing countries. It is therefore on the foregoing premise
that this research work is
necessary in the first instance.
1.3 PURPOSE OF
THE STUDY
1.
To
what extent does insurance in Nigeria
helps in solving economic problems in building of the nation
2.
To
what extent does the non-challant attitudes of some people affect nation
development.
3.
To
what extent does is the usefulness of insurance of the manage management; serve
as a reference point for the self-help and self-reliance.
4.
To
what extent has Government gone to curb the problems associated with insurance
management as regards development?
1.4 TEST OF HYPOTHESIS (NULL)
In the course of the
study (4) hypothesis were treated these include Hoi there is no significance
benefits derived by common man from insurance fund and management. Ho2 There is no significant
evidence to prove that some people have non-challant attitude towards insurance
industries.
Ho3 There
is no usefulness of insurance management as reference point for self-help and
self-reliance.
Ho4 there are many identified problems
associated with insurance management towards national development.
1.5 SIGNIFICANCE OF THE STUDY
A work of the nature is not without significance or
relevance to some people, group and companies alike. It is on this basis that the research
outlined the following significance of the study.
i. This study
provides background for the enlightenment of
the masses to understand the need for insuring reasons
to insure, how to insure and so on.
ii. the study
on insurance company management and practice
in Nigeria
entails giving detailed enlightened to the
insuring and general public on how the insurance industries are being managed and practice.
iii. It is vital
for the masses to know and understand some terminologies
in insurance duties and responsibility of each
department and staff in an insurance company.
iv. This research work will serve as a study
to ascertain this process of assessing risk proposed for insurance and fixing
proper premium rate, which is otherwise know as underwriting.
v. Knowing how to re-insure which helps to
reduce his ultimate liability
warranties and condition of insuring also
criteria of the risk accounts of the
company.
vi. The study will assist in identifying
various problems associated with insurance
management towards national
economy.
vii. It will at the same time save as a
reference point to many
itching to insure to encourage them and to help in knowing how to chose an insurance company of his
choice.
viii. At the end of this research work, many
people in our society will be
able to correct their mistakes and ignominious
approach towards insurance management and
its importance towards improving living standard and other economic development in the nation.