Establishment of Insurance Agency in Institute of Management and Technology (I.m.t): Problems and Prospects

Establishment of Insurance Agency in Institute of Management and Technology (I.m.t) Problems and Prospects

Abstract of Establishment of Insurance Agency in Institute of Management and Technology (I.m.t) Problems and Prospects

This project is a  pure study on the appreciation of insurance discipline in our institution. The idea of this study is to ascertain the potential insurance buyer in the institute of management and technology, Enugu and also if the staff will purchase insurance from insurance Agency if established in the institute.

Moreover to carry out this investigation, the following objectives were formulated.

1.    To ascertain the potential insurance buyers in the institute of management and Technology (IMT). Enugu.

2.    To advice the institute on the importance of agency of office if it is established in I.M.T.

3.    To enhance the insurance services for the buyers and reduce bottleneck encountered with outside Agents and brokers.

4.    To reduce cost of insurance for the institute.

In order to achieve these aims, questionnaire, and oral interview were used and critically analyzed in chapter four.

Chapter One of Establishment of Insurance Agency in Institute of Management and Technology (I.m.t) Problems and Prospects

INTRODUCTION

Hardly have most people in Nigeria today actually understood the real place of marketing in the insurance industry. Often and again,  people misunderstood the function and role of brokers and agents in the insurance industry.

Before the subject matter at this project is tackled, it is necessary that a brief definition be given. Marketing could be defined as a function in business which aids selling, plus marketing research promotion, distribution, service product scheduling e.t.c.

In view of the fact that marketing is the brining out of what the customer needs, in actual fact and in most cases the client does not know or unaware of what he really needs whereby the remaining job is left for the agents and brokers to convince the propose about the product.

The main purpose of establishing insurance agency in a place is to create insurance awareness to the people at that particular area or environment. This bridges the gap between the people and the policy holders which will indemnify them against certain risks. To put up an insurance agency in an institution will also enable the community within the institution understand and learn of certain risks which they do not know. The establishment of insurance agency in IMT littler to becomes necessary considering the role at the institute in the training of manpower for insurance industry.

However, the more pressing problem is lack of awareness by the community of the importance and benefits at insurance despite its level of academic excellence.

Insurance agency is an organization whose main business is canvassing and selling insurance policies to the public. In this case there shall exist the competence to advise the proposers on the best policy suitable to them and the benefits attached. The agency is remunerated by way of commission from the insurer.

The major factors that determine the scope of operation of any agency are financial capability, consumer preference as well as the ability to meet with the government regulations on the establishment of insurance agency (insurance decree 58 of 1991 section 28).

It is a well know fact that the Nigerian insurance industry is still at its infancy age compared to its counterparts in the western countries. However, it has been observed with the aid of survey that the sell of insurance policy is highest within the academic circle of the Nigeria community.

BACKGROUND OF STUDY

The establishment of insurance agency department in the academic environment such as IMT will bring the insurance services of immense benefit to the staff of IMT and students of the department of insurance. It will also be a means of imbedding insurance sales potentially in the students of insurance as well as minimize the cost of insurance for the institute.

The insurance industry will also benefit from this because it is a primary means of building good insurance image.

The department will also utilize the outcome of this research as an evaluation criteria in determining the profitability of the venture and a workshop for the students in fulfilling the objectives of manpower development for insurance industry.

STATEMENT OF PROBLEMS

Having complied with the rules and regulations of the insurance supervisory authorities in which they operate, though there are still some problems in the establishment of insurance agency in the institution and the prominent among them are as follows:

1.    Public unawareness of the essence of insurance take time for the brokers and agents to be known in the public. To me, this is a very vital aspect of marketing in insurance industry.

2.    The institute does not have an insurance unit whose duties will be to advice both the staff and the institution on issues regarding their insurance needs.

3.    Most insurance agents are seen as cheats, therefore the community needs suc-an agency within their reach to get advise as well as transact all their insurance businesses.

4.    Also due to the poor image of insurance in Nigeria the people shy away from insurance transaction due to lack of confidence in insurance. Therefore the IMT community needs a trustworthy insurance agency with which they can transact insurance business and which also have a recognized office in the campus.

OBJECTIVE OF STUDY

Developing implies growth this researcher study aim of establishing the factors that limit the growth of insurance agency in developing counters using Nigeria as an example.

The study will also offer solution to the hinders identified.

SIGNIFICANCE OF STUDY

This research will be of paramount important and of immense benefit to the staff of IMT and students of the department of insurance. It will also be a means of imbedding insurance sales potentially in the students of insurance as well as minimize the cost of insurance for the institute.

The insurance industry will also benefits from this because it is a primary means of building good insurance image.