ProjectClue.com WhatsApp or Call Us

projectclue whatsapp icon07030248044

Project Topic:

AN ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 54 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   7,726 people found this useful

Project Department:

INSURANCE UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION

1.0  BACKGROUND OF THE STUDY

Insurance is a security device used by the inured to protect himself against a risk purchased from the insure and the right to be indemnified if the risk should materialize. The purchase price which the insured pays the insurer is known as the premium, often paid on  monthly or annually basis and the insurer in return compensate the insured in event of loss.

 

THE DEVELOPMENT OF INSURANCWE INDUSTRY IN Nigeria begins in 1950 during the colonial era period characterized by a market dominated by Europeans company which virtually held the monopoly of insurance business over the continent of Africa. At that time most Nigerians citizens are not aware of insurance and it importance. After Nigeria independence in 1960 most of the industries managed by the Europeans are been taken over by Nigerians. As they begin to managed those companies, the awareness of insurance and it importance was known.

In the 1980, insurance companies operating in Nigeria begins to grow in numbers and the need to enlighten the citizens on insurance was carried out by some of the employee of those companies. Who went to the street to educate they people on the danger of risk that might occur in many ways, such as fire, theft, accident, rain storms etc. and the responsibility of the insurance is to compensate the unfortunate person who has suffered losses by placing him in the same position as he was before. However, some people agreed to take up an insurance policy but the number of those that patronize the company at that time was very few.

In Nigeria today, most industries and commercial business have insurance cover. This is because insurance ensure the growth and development of all industries and business established and spread all over the country. Apart from business most people don’t insure their houses, cars farms etc. they show reluctant attitude towards taking up insurance policy for such assets and also think it’s a waste of money. Giving great consideration to the above statement, the researcher is compelled to carry out a research on the topic in question an assessment of adequate risk recognition and management in Nigeria insurance companies. In order to re-oriented the people toward changing their attitude and belief about insurance industries.

1.2. STATEMENT OF THE PROBLEM

The insurance industry over the years has been going through a lot of problems, which hinders their effectiveness and efficient rendering of services. These include.

  • Lack of survey of risk transferred by the insurance companies, as such risk are just assumed without properly scrutinizing the situations and circumstance surrounding such risk.
  • Lack of adequate claims settlement procedures which are characterized with bureaucracy.  
  • Lack of proper fixed and computed premiums which endangers the solvency and profitability of the insurance companies.

1.3. OBJECTIVES OF THE STUDY

The following are the objectives of this study?

  • To assess hoe insurance companies render their services.
  • To determine the effectiveness of how they handle the risk that is being transferred to them.
  • To encourage insurance companies to have financial strength that will contain the risk of losses that they have agreed to assure.

1.4. FORMULATION OF HYPOTHESIS

Null hypothesis (Ho( insurance is not a security device used by the insured to protect himself against a risk.

Alternative Hypothesis (H1) insurance is a security device used by the insured to protect himself against a risk.

1.5. SCOPE OF THE STUDY

The scope of this study will be based on risk recognition and management in the insurance industry with specific interest on lead way assurance firm from 2008 to 2010.

1.6. SIGNIFICANCE OF THE STUDY

  1. The research write up will serve as a source of data for subsequent project and research work.
  2. The write up will also help in creating awareness among the insuring public on the relevance and value of the services offered by the insurance industry.
  3. The research study shall be an immense reference materials to students and other researchers who might want to expands the research topic.

1.7. HISTORICAL BACKGROUND OF THE CASE STUDY

Leadway Assurance company limited was in corporate in 1970 as a limited liability company. The company started it operation as a direct motor insurance company and further expanded in the early 80’s to cover more risk.

The company’s remarkable success has been possible as a result of its sound professional and business standards backed by the uncompromising level of integrity of its Directors. Such uncompromising level of integrity was instilled by it late founder sir (DR) Hassan .O. Odukale as an honest businessman, the founding managing Director sir Odukale nurtured the company to an eviable position in the Nigeria insurance industry. Leadway is a private company with 28 share inventors and trust corporation. The statutory deposit of leadway with the C.B.N as at 2002 stands at over 13.5 million being 15% of their statutory paid up capital as provided by pre 2003 insurance act. This further affirms their position as a full fledge composite insurance company under writing all classes of insurance in Nigeria.

The company, however announced it achievement of 5.5 billion capital base as at April 30, 32006 which implied that the company has already met the statutory of N5 billion capitalizations for composite firms. The company authorized share capital has raise from 2 billion to 4 billion in order to meet statutory requirements and accommodate increasing need for higher capital structure. The increase as given the company the necessary leeway to keep increase its paid up capital steadily and also enable it to accommodate new investors.

  1.8. DEFINITION OF TERMS

  • Proposal forms: This is a document that is drafted by the insurer to seek answers to the main materials aspect of the risk that will be insured.
  • Premium: This is an amount that the insured pays at every month ort annually to the insurer
  • Proximate Cause: It used to determine whether the loss sustained by the insurer was cased by the risked insured against.
  • Cover: Protection provided by the insurance company to the insured against a risk.
  • Indemnity: This is process whereby the insurance company compensates the insured in the event of loss.
  • Insurer: An insurer is the insurance company who managed risk that was insured.
  • Re-Insurance:  Is a process whereby the insurance transfer part of the risk it assumed to another insurance company.

Get the complete project »


Instant Share On Social Media:


Can't find what you are looking for?
Call (+234) 07030248044.

OTHER SIMILAR INSURANCE PROJECTS AND MATERIALS

ANALYSIS OF THE CONTRIBUTION OF INSURANCE COMPANIES TO THE GROWTH OF SMEs: A CASE OF NIGER INSURANCE CORPORATION

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 59 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   15135 engagements

CHAPTER ONE INTRODUCTION 1.0 Background The substantial growth of small and medium enterprises (SMEs) activity clearly marks SME as one of the most remarkable economic phenomena. SME is a business ...Continue reading »

CREDIT RISK MODELLING TECHNIQUES FOR LIFE INSURERS

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 55 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   6955 engagements

CHAPTER ONE INTRODUCTION 1.1. Background of the study This study examines the factors that influence the techniques of credit risk modeling for life insurers in Nigeria - a major developing economy...Continue reading »

FAIRNESS AND EQUALITY IN INSURANCE CLASSIFICATION

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   4596 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY Insurance is to a large extent based on risk selection and classification. Legislators however are inclined to impose restrictions to these dif...Continue reading »

IMPACT OF INSURANCE ON HEALTH SERVICES IN NIGERIA

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 87 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   4072 engagements

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY A mixture of tax income, out-of-pocket costs, donation aid, and private benefits is funded by health care in Nigeria (social and community) (WHO...Continue reading »

INSURANCE COMPANY IN THE ECONOMIC DEVELOPMENT OF GHANA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 52 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   5172 engagements

CHAPTER ONE 1.0 Introduction The present biggest challenge is developing an economy of a country’s sustainable growth and development to serve as a benchmark for economies the world over. In ...Continue reading »

MANAGEMENT OF INSURANCE COMPANIES IN NIGERIA( A CASE STUDY OF UNIC INSURANCE PLC)

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 65 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   3386 engagements

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. Th...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Abubakar Sani from Nigerian Investment Promotion Commission said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good quality. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 2. Ogunniran Olawale from Ekiti state university said "Projectclue is really safe and reliable Quick access to project works Nice customer service Fast delivery of request Recommend this toy fellow students ".
    Rating: Excellent
  • 3. Fahat Nasir from isa kaita college of education dutsinma said "Fish farming a solution unemployment ".
    Rating: Very Good
  • 4. Ajimbi Oluwarotimi from Theology school osun said "Good ".
    Rating: Very Good
  • 5. Clement Abdullahi Ogiji from National Open University of Nigeria said "I am a living witness and have recommended project clue to a lot of students, so far none have been disappointed, very reliable and, trustworthy and dependable".
    Rating: Excellent
  • 6. Jhuee from Sultan national high school said "Good quality. I recommend project clue for any project research work.".
    Rating: Excellent