THE GOAL OF EFFECTIVE MANAGEMENT OF LIFE ASSURANCE IN NIGERIA INSURANCE INDUSTRY
This research report examines the goal of effective management of life assurance product in Nigeria insurance industry; focusing specifically the Leadway Assurance Plc. The objectives of the study were identified which includes to know the important benefits of life assurance business in Nigerian economy; to evaluate claims procedures in life assurance business; upon these objectives, the research questions were formulated, the significance of the study evaluated and the scope and limitation identified. The literatures relating to the topic under review. The researcher used both the primary and secondary source as the source of data, the sample and population of study ascertain, questionnaire and oral interview were the major instrument used for data collection. From the analysis and interpretation of the data collected the researcher found out that the image of insurance industry in Nigeria is retarded because of their inability of settle claims promptly and that life assurance helps to reduce the growth level of economic insecurity in the country. Upon the findings and conclusions the researcher recommended that there should be reduction in the level of unethical practice by the insurance practitioners in Nigeria and that the government together with the industry should embark on massive campaign seminar and workshops to educate the public on the important of life assurance product to the economy.
1.1 BACKGROUND TO THE STUDY
The field of insurance has taken a giant leap at the threshold of twentieth century. Insurance has become an integral part of life of man all over the globe. The proverb “used in the mother of invention” is providing equally correct in case of insurance, insurance has already had a considerable impact on many aspects of our society. Claims management in life assurance is another important aspect of insurance. It is complex in nature that is true but it is a driving force to plant confidence in the heart of the insuring public and as well proffer the image growth and development of insurance business in Nigeria.
Claims management in life assurance business is one of the most challenging business process in the insurance industry. With the number of stockholders involved, the to eliminate manual inventions. For many life assurance companies, claims management is expected to run the claim process efficiently and keep expenses low, but popularities afforded through effective data management in effect, the data captured in the claim process which all too often are under utilized, are rich in variable information for those who know how to extract and analyze it. Claims management is an expert system which generated the rules and regulations for the assessment of claims using key information contained in medical reports; surveyor report, loss assessor’s reports, claimant’s petition and the procedures or condition and warranties contains in the policy document. Effective and efficient management of life assurance claims in Nigeria insurance industry will help to reduce the bad conception of the insuring public that insurance is in concept not in practice.
1.2 STATEMENT OF THE PROBLEMS
The following are the problems that prompted the research of this study;
1. Poor management of life assurance claims and expenses in Nigeria insurance industry.
2. Delay in settlement of life assurance claims in Nigeria insurance industry.
3. The believe that insurance is in concept and not in practice.
4. Failure of the public to understand the important benefit of promoting economic business in Nigeria economy.
5. Poor knowledge of what life assurance is all about and the term and conditions of life assurance policies in Nigeria.
6. Poor image growth and development of life assurance business in Nigeria.
1.3 OBJECTIVES OF THE STUDY
1. To trace the historical development of the life assurance business in Nigeria.
2. To know the important benefits of life assurance business in Nigeria economy.
3. To evaluate claim procedures in life assurance business.
4. To know how life assurance claims are assessed in Nigeria insurance industry.
5. To examine the impact of effective management of life assurance claims management in Nigeria insurance industry.
6. To examine the problems facing effective and efficient management of life assurance claims in Nigeria insurance industry.
7. To make recommendation based on it.
1.4 SIGNIFICANCE OF THE STUDY
The project work will be of immense benefit to the followings:-
1. Students: The study will be useful for academic purpose and it will serve as a date base for students carrying out further research on the related topic.
2. Insurance Industry: The stud will be useful to insurance companies in Nigeria in the sense that it will help them in their effort to improve in effective and efficient management of life assurance in Nigeria.
3. The study will also help to advocate and as well serve as a means of creating more awareness on the important benefit of life assurance in Nigeria economy.
4. Researchers: The study will provide some useful information to researchers and will give them the basis for validating or disapproving the findings of the research.
5. When the public understand what life assurance is all about and begin to patronize the insurance companies, there will be returnes to the companies who will when pay their taxed and, the country economy will be affected.
1.5 RESEARCH QUESTIONS
1. Is the image of life assurance business in Nigeria retarded because of poor management of life assurance claims and expenses?
2. Are there any important benefits of life assurance business to the Nigerian economy?
3. Does Nigerian insurance industry deny settlement of claims?
4. Does Nigerian insurance industry delay in settlement of life assurance claims?
5. Are there any problems and challenges facing affective and efficient management of life assurance claims in Nigeria insurance industry?
6. Are there any impacts of effective and efficient management of life assurance claims in Nigeria insurance industry?
7. What are the procedures involved in settlement of life assurance claims in Nigeria insurance industry?
8. Does life assurance business help to reduce the level of economic insecurity in Nigeria economy?
1.6 SCOPE AND LIMITATION OF THE STUDY
The scope of the project work is restricted to some selected insurance companies in Enugu;
Lead way assurance company
Amon assurance plc
Industrial and general insurance plc
Therefore, the information gathered will be used as inference to other insurance and reinsurance companies in Nigeria.
The following are factors that limited this:
1. Sourcing of Data: Due to the nature of insurance job, it was quite difficult to get the managers and other senior officers to answer our questions and to find information as related to this innovation.
2. Time: The time given for the project work will too short as other academic works almost cut in time of investigation and data collection.
3. Finance: The researchers experienced inadequate finance in the time of undergoing this research work.
4. Previous Research: Another fact that limited the study was death of previous research works on the related topics.
1.7 DEFINITION OF TERMS
Insurance: Insurance is a scheme that allows a person called the insured to transfer the financial consequences of an identified event to another person known as the insurer, the insured pays a prices known as premium to the insurer who promises to pay the sum insured if the event occur according to the contractual terms.
Life Assurance: Can be seen as a scientific scheme which enables a person to co-operate with other persons through the medium of a life company to provide benefits on the happening of event contingent upon the duration of human life.
One who has an Insured: Insurance protection against economic continent that might occur in the economy.
Insurer: Insurer is the person who agrees to indemnify the insured or his beneficiary upon the occurrence of the event insured against.
Premium: This is a monetary consideration paid by the insured to the insurer to enable him secure a cover of insurance.
Risk: Risk is defined as uncertainty of financial loss or that which signifies potency of dangers through with a degree of uncertainty.