Insurance Companies and Their Impact on Economic Development of Nigeria

Insurance Companies and Their Impact on Economic Development of Nigeria

Abstract of Insurance Companies and Their Impact on Economic Development of Nigeria

Business produce goods and services to satisfy the demand of customers. Muchas these businesses declare profit year-in-year-out, they also face element of riskand uncertainties that may causes losses. This includes fire, theft, damage byartificial or natural agents and so forth. The business men in the olden daysengage into economic activities with pessimism and fear of incurring losses. Thisinhibits large scale production which is capital intensive. However, with the adventof the insurance business, things improved for the between, as business menbecome encouraged to commit more of their resources in production activities,knowing fully well that the insurer will reimburse item in the event of damage orloss. Simply put, insurance is a contract of utmost good faith in which the insurerwill pay compensation to a policy holder for loss or damage of insured items.Meanwhile, the practice of insurance has become a lucrative business in itself,such that it contributes enormously to the national development in items ofemployment opportunity provision as well as Gross Domestic Product (GDP)Thus, the interest of the research is aroused to carry out a study in this important,yet neglected sector of the economy with a view of sensitizing the students,business men and the entire public of the benefits derivable from the insurancebusiness. The public policy makers shall be intimated as to the areas that requirefurther regulations and or deregulations.6The researcher therefore employed and secondary sources of data collection inorder to do justice to the topic. Chi-square technique of data analysis was used tofully digest the sourced information. This technique is quantitative and its choicewas informed by its ability to give a pictorial view of the research findingsnumerically. Similarly, NICON insurance company was the focus as a case study.The most important among the research findings include the lack of awareness oninsurance issues by the teaming Nigerian populations, minimal coverage of theindustry’s activities in such important sector as health and agriculture, lack ofadequate government as well as private sector participation in insurancebusiness, death of professionally qualified staff operating with the industry toboost the confidence of patronizers; vague and intricate operational mechanismand of course public suspicion about the sincerity of purpose with which theinsurance business is dispended, the researcher, hence, proffered such remedialrecommendations as infusion of deep sense of professionalism by practitioners inthe industry with a view to fostering public confidence, inclusion of insurancetraining in schools curriculum right from secondary to post secondary institutionsas mandatory especially for science students, sponsored programmes on pointand electronic media outfits on insurance matters, increased governmentparticipation and deregulation of stringent rules barring the engagement of privatesector into insurance business and up-front settlement of genuine claims as theyfall due.