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.
CHAPTER ONE – INTRODUCTION 1
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 Nigerian insurance market presents vast opportunities for citizens, the industry, the financial services sector and the economy. But the market is not efficient, lacks capacity of consumers trust, expert say the net effect is that it does not grow and no meaningful contribution to the macro-economic indicators.
The insurance gap in Nigeria is presently put at 94 percent which implies that less tham 10 percent of Nigerians have any forms of insurance. The wide gap is attributable to public inertia and apathy. The insurance density on the other hand is put at N875,00, this means that Nigerians on the average spend les spend less than N1,000 annul on insurance presently, the total industry income is about N170 billion.
According to NAICOM, for the set target to be achieved, the insurance gap must be lowered to a minimum of 70 percent, with 2012 as the target data. Globally, the world insured premium income from 2006-2008 as presented by sigma publication shows that life insurance has contributed more premiums, an average of 58.86 percent than non-life business an average of 41.14%. However the reverse is the case in Nigeria which contributes 17.90 percent for life as against 82.10 percent for non-life.
Nevertheless conscious efforts were made by successive government and the regulation to improve the insurance market over the years “one of such effect was the market consolidation exercise that started in 2005 culminating in increase of industry’s minimum capital requirements.
With this the research focused on the insurance industry market the problems prospect and the role of the national insurance commission in promoting insurance market in Nigeria.
1.2 STATEMENT OF PROBLEM
1.3 OBJECTIVES OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 SIGNIFICANCE OF THE STUDY
The significance of this study is bedded on the stated objective. The research work is aimed at encouraging the insurance industry on engaging in professional practice and also ensure that the national insurance commission identify their roles as stated in the decree 997 which established the commission.
The research work is also of important to the students as it will serve as a point of reference to those of them who want/desire that to carry out research on similar topic also the government and its agencies will be a benefactor of this research work as the outcome of it will expose the opportunities that are yet untapped by the insurance industry in the economy because of government policy in consistency.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
The research work covered the role of National Insurance Commission (NAICON) in the promotion of Nigeria insurance market opportunities. The research examines the functions of the national insurance commission the power of the commission, organizational structure and the programmes put in place by the commission to ensure the actualization of the federal government vision 20:2020.
In the course of carrying out this research work, the researcher encounter some challenges ranging from paucity of funds, to denial of access to confidential information and data
Also, time inadequacy was also one of the constraints encountered by the researcher in the course of carrying out the research w
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