Thesis Abstract

<p> This project work titled ‘’the management of insurance company towards the<br>development of business enterprises’’ a case Study of Royal exchange assurance Nig.<br>Plc. Kano. This research work intends to survey the role and the concept of insurance<br>companies in business and in the sustainability of business enterprises in Nigeria. The<br>researcher adopted a descriptive method of survey; the sample method use was sampling<br>method. Both primary and secondary sources of data were used to obtain relevant<br>information. The company has a total population of 100 employees’. The sample size<br>was 50 which is draw from the total population using Yaro Yamani formula.In my<br>findings, it claims for those loss will be guaranteed. It is recommended that the<br>insurance managers should do everything possible to train their staff on job and on<br>insurance training. It is drawn to the phase of the insurance industries with a view of<br>determining adaptability and sustainability, taking into consideration the peculiarity of<br>Nigeria circumstance. Take into consideration, the recapitalization exercise in the<br>companies rather than financial effects and also to proffer solutions to problems hiking<br>around the insurance companies. <br></p>

Thesis Overview

<p> </p><p>1.0 INTRODUCTION<br>Life is full of risk and every human being is confronted with possibility that one day one<br>of these hazards which form part of life may befall them because one financial loss or<br>the other. The purpose of insurance is to indemnify the victims for the financial loss they<br>might have suffered as a result of these risks. Risk is a concept that denotes a potential<br>negative impact to an asset or some characteristic of value that may arise from some<br>present process or future event. In everyday usage, “risk” is often used synonymously<br>with the probability of a known loss. Paradoxically, a probable loss can be uncertain<br>and relative in an individual event while having a certainty in the aggregate of multiple<br>events (see risk vs. uncertainty below). Risk is the possibility of an event occurring that<br>will have an impact on the achievement of objectives. Risk is measured in terms of<br>impact and likelihood.<br>Insurance was not set out to climate and cannot soften the blow in a purely financial<br>sense of obtaining monetary compensation to the victims thereby placing them in a<br>financial position.<br>The purchasing of an insurance has been earlier describe as the insured person as a<br>policy holder in order to protect himself against a particular risk, take out a policy with<br>an insured, thereby passing over the risks to the insured on a payment of a fee known as<br>premium.<br>Life is associated with different kind of risk some of this risk are insurable while some<br>are not. The insurance industry in each devices different type of insurance policy to<br>carter for each one to the insurance risk. The more conventual‟s, one being marine, fire,<br>life, aviation, motor, person, accident and a lot of others.<br>1.1 BACK GROUND OF THE STUDY<br>Insurance as an industry did not exist in Nigeria until the later part of the twentieth<br>century. However, there existed in Nigerian communities, some form of organize mutual<br>social insurance schemes which had the future of modern insurance.<br>Apart from the early social insurance scheme, insurance as an industry is relatively new<br>in Nigeria. The first operation branch of an insurance company was open in Nigeria in<br>Lagos in 1921 by the Royal exchange assurance Plc. and it remain the only insurance<br>company in Nigeria until 1949 when three British owned insurance companies were<br>opened up.<br>As at the time Nigeria got her independent operating insurance as risen to twenty five<br>and were mainly foreign owned. The insurance degree was prorogated to regulate the<br>way previous legislation did not do.<br>The insurance company In Nigeria and the insurance industry are control by the federal<br>ministry of finance another offices of director of insurance. The insurance departments<br>of these ministries are responsible for the control activities of insurance companies so as<br>to ensure compliance electrets of 1976 and other relevant regulation related to the<br>business of insurance in Nigeria.<br>Royal Exchange assurance Plc. engage themselves in the following types of risk, they<br>are;- loss of profit following the insurance personal inability, trained insurance, private<br>can insure motor cycle group, house holders comprehensive insurance and all kind of<br>risk.<br>Royal Exchange Insurance Nig. Plc. as many branches within Nigeria with the head<br>office in Lagos and the incorporation number 6572 and the degree number that symbols<br>Royal Exchange insurance his degree 58 of 1920.<br>1.2 STATEMENT OF THE PROBLEM<br>Owing to the negative factions surrounding the insurance industry in Nigeria, the<br>activities of the industry have been subjected to various criticisms of those negative<br>factions. We can identify good number of problems. Therefore, the statement of this<br>problem of this study could be obtained based on the observation and critical analysis of<br>the industry. Non payments of claims in the industry have become a faction that<br>negatives the performance of the industry. Despite the factor, insurance company collect<br>premium from their clients.<br>Another is the issue of inadequate capital and investment to put the company in a more<br>favorable condition to meet their demand of their clients.<br>Often business organization in the country that rely on the insurance companies realize<br>they are in the case were they incurred losses which have been insured barely affect the<br>business.<br>1.3 OBJECTIVE OF THE STUDY<br>As a general rule, there are hardly any differences between the aims and objectives of<br>the insurance in Africa from those of similar ones operating elsewhere in the world. A<br>brief examination of the aims of a typical insurance emphasizing those features that<br>would be OD special interest to the prop actors and managers of insurance company in<br>Africa will be useful. The objective of an insurance company may be summarized as<br>follows;-<br>1. To sell insurance cover to insurance consumers.<br>2. To settle all genuine claim family land promptly in accordance with law and be<br>formed relevant insurance policy.<br>3. To run business or organization in such a way that it produce a fair to the<br>shareholders who funded that capital with which the business was established.<br>In moving forward these basic objectives, the prop actor and managers of the insurance<br>company have certain responsibility to different group and making their decision they<br>must bear in mind and protect the interest of each group, these groups are;-<br>i. The policy holders.<br>ii. The shareholders.<br>iii. The workers and staffs.<br>iv. The Nation and the society.<br>1.4 SIGNIFICANCE OF THE STUDY<br>Insurance companies form a part of the very fabric of the economy and are<br>indispensable to it in the modern state. They are vitally necessary because they are one<br>of the most important vehicles for development and because of the security they give to<br>entrepreneur, that policy holder and shareholders.<br>The availability of insurance maximizes the entrepreneur‟s uncertainty to the extent that<br>some of the risks with which he is faced with can be translated, for a fix amount called<br>the „‟premium‟‟. He is to fully commit his assets to the operation of his business. This<br>enables them to acquire the necessary confidence and tranquility of mind that are<br>requisites to fruitful risk looking.<br>1.5 SCOPE OF THE STUDY<br>The researcher‟s work would have been wide in nature; however, it has restricted itself<br>to insurance company. Thus the study will focus and concentrate strictly on the role of<br>insurance company towards the development of business enterprises. Insurance provide<br>a means for industrial and societies to cope with some of the risks faced in everyday life.<br>Earning capacity is asses that should be protected through insurance.<br>1.6 LIMITATIONS TO THE STUDY<br>A research of this nature is found to have a lot of limitations. Time factor was a serious<br>problem encountered; the period given for the completion of this research work was<br>share along with academic, non-academic work which was necessary in relation with a<br>completion of school in general. The time spread to include the distribution and<br>gathering of questionnaire from respondents which was a problem of its own entirely.<br>Financial constraints can never be rule out in a situation like this, the money required<br>for the running around, cost of materials etc.<br>Another limitation is that of material for the secondary data. Even though there are<br>many existing text books and journals of insurance nature which would have been used<br>for this research work. Getting them in the library wasn‟t easy as many students are<br>equally writing on similar topics which require the same materials.<br>1.7 STATEMENT OF HYPOTHESIS<br>In every study, there is an assumption on the variable of that study. This assumption<br>tends to predict the outcome of the study. The hypothesis of this study is to asset the<br>following;-<br>HI: Insurance firms play a vital role in the development of nation economy.<br>HO: Insurance firms don‟t play a meaningful role in the development of nation‟s<br>economy.</p><div><div></div></div><br> <br><p></p>