Impact of Management Information System (Mis) on the Insurance Industry in Nigeria
Impact of Management Information System (Mis) on the Insurance Industry in Nigeria
Chapter One of Impact of Management Information System (Mis) on the Insurance Industry in Nigeria
INTRODUCTION
Background to the study
Insurance businesses are today much more concerned about the effect of competition than they were a few years ago. They must react to the competitive threats not only from local source but also from regional, national and international source; likewise they must seek to explore all opportunities that are available in the immediate, national and Global environment. Deregulation has also increased competitive pressure for insurance organizations to survive, grow and prosper. In such a competitive environment, insurance managers must employ a lot of the resources at their disposal as efficiently as possible so as to accomplish the objectives and goals of the enterprise. Management Information System provides information in form of reports and displays to insurance managers and many business professionals (Munirat, Sanni and Kazeem, 2014).
Management Information System takes into account integrative nature of information flow as well as the structuring of the organization around decision centers. Standards of performance are part of any good plans; hence, determination of standards like other aspects of the planning process depends on the availability of relevant management information system. Management information system aids the functioning and monitoring of an insurance organization. It also describes the components and resources to ensure the proper functioning of insurance.
Management information system has changed the physical layout of offices to accommodate local networks and departmental integrated systems. It is also a formalized procedure to provide management at all levels and in all functions with appropriate information from all relevant source to enable them make timely and effective decisions for planning, directing, evaluating, and controlling the activities for which they are responsible for (Munirat, Sanni and Kazeem, 2014).
Moreover, the potential of management information system to provide firms competitive advantage has been a topic of interest to both practitioners and academicians over the last five (5) decades. This interest is reflected in the large number of studies that have examined the strategic value of performance of management information system and its impact on firm performance. This attention to performance of management information system stems from the fact that insurance organizations often make significant investment of time and financial resources in the acquisition of information technology and its services in recent times (Oladipo, 2012).
The role of information in decision-making among insurance practitioners cannot be overemphasized; and effective decision-making demands accurate, timely and relevant information. As the numbers of employees, customers and transaction increases in an organization the more it become multifaceted, and the information needed for effective management, planning, decision-making and control invariably becomes more complex (Olumoye, 2013).
In the context of insurance, decision-making is the task of every top management in the industry and they need relevant and timely information to assist in taking decisions. According to Lucey (2005), relevant information increases knowledge, reduces uncertainty and is usable for the intended purpose. However, there are difficulties in producing relevant and timely information among most organizations in Nigeria and the insurance industry is not exempted. Hence this study seeks to explore the impact of performance of management information system (MIS) on the insurance industry in Nigeria.