Thesis Abstract

Abstract
The insurance industry in Nigeria relies heavily on intermediaries to connect insurers with customers. However, intermediaries face various challenges that hinder their effectiveness in the market. This research explores the problems encountered by intermediaries in the Nigerian insurance industry and the future prospects for this sector. The problems faced by intermediaries in the Nigerian insurance industry are multifaceted. These challenges include inadequate regulatory framework, low level of public trust, intense competition, inadequate training and development programs, and lack of technological advancement. The complex regulatory environment in Nigeria makes it difficult for intermediaries to navigate the industry effectively. Additionally, the low level of public trust in insurance products and services further complicates the intermediaries' task of promoting insurance policies to potential customers. Furthermore, intermediaries in Nigeria operate in a highly competitive market where they must differentiate themselves to attract and retain clients. The lack of comprehensive training and development programs for intermediaries also hinders their ability to offer quality services to customers. Moreover, the slow adoption of technology in the insurance industry limits intermediaries' efficiency and effectiveness in reaching a wider customer base. Despite these challenges, there are promising future prospects for intermediaries in the Nigerian insurance industry. The ongoing regulatory reforms aim to streamline the industry and create a more conducive environment for intermediaries to operate. Building public trust through transparency and ethical business practices can help intermediaries overcome the skepticism surrounding insurance products. Additionally, investing in training and development programs for intermediaries can enhance their skills and professionalism, leading to improved customer service and satisfaction. Embracing technological advancements such as digital platforms and data analytics can also help intermediaries reach a larger market and offer more personalized insurance solutions to customers. In conclusion, while intermediaries in the Nigerian insurance industry face various challenges, there are opportunities for growth and development in the future. By addressing the existing problems and leveraging emerging trends, intermediaries can play a crucial role in expanding the reach and impact of insurance services in Nigeria.

Thesis Overview

1.0              INTRODUCTION

1.1       BACKGROUND OF THE STUDY

the need for intermediaries in insurance market in Nigeria is an issue which its important cannot be over emphasized.

Research has shown that the problems encountered by the intermediaries has an impact on the growth of insurance level in our society, there is a wide spread of lack of what benefit it is to the society. Research has shown that there is a significant relationship between the extent to which one understands and the importance one attaches to insurance. The more clear and understandable one finds insurance to be and the more likely it is that the insurance intermediaries will be know the importance of insurance before the facilitators can be recognized. This shows that low level of literacy constitutes to the problems encountered by the insurance intermediaries. Because the intermediaries work for the insurance company, any problem that affects the company affects them.

The experience of some people who had be dealings with insurance over the years ha snot be very cordial such unfavourable relationship had been publicize over the years that it has created a poor perception of insurance intermediaries and the insurance companies to the general public. Insurance have not help issues by their reticent in publishing their activities. One has to be aware of insurance before one makes a conscious effort to understand what it is all about. The insurance industry has the duty to create awareness of the existences of their intermediaries and their industry in the minds of the public.

Individual insurance companies have the responsibility of letting the public know that its intermediaries exist and what functions they perform. Literature such as one of the roles of insurance companies and intermediaries to individuals and the society in general should be widely circulated.

Handling of insurance claim is another area were insurance intermediaries encounter problem. This is obvious because when an insurance company could not settle her claim with the insured (policyholder) the impact fall on the intermediaries that facilitate contractual relationship between the insured and the insurance company. This makes the general public to call both the intermediaries and insurance companies fraudsters. A good insurance transaction lies essentially on the ease with which are insurer claim cheque is received. Claims handling is one area were an effective communication is necessary, as well as reaching prompt decision immediately all facts are known. The inability of the insurance companies to do this makes it difficult for an intermediary to help his clients in sorting out their claim with the company.

Location of the insurance company also is one of the problems encountered by intermediaries because they find it difficult to transact business in rural area. There is no comparison between an insurance company situated in the city and that of rural area. Insurance company situated in a rural area might not be progressing because of the low level of literacy of people in the area.

1.2       STATEMENT OF PROBLEM

The image of insurance industry and their intermediaries is noting to write home about. This is to those who do not know what insurance is all about. Having complied with the rules and regulations of the insurance supervisory authorities in which they operate, though there are still problems in the insurance companies and the among them are as follows.

(a)                Ineffective publicity, lack of information about different classes of insurance and benefits behinds each classes of insurance to the policyholder is acting as one of the problems being encountered by the insurance companies and their intermediaries.

(b)               Public unawareness of the essence of insurance takes time for the brokers and agents to be known in the public. Many of our people today are still ignorance of what insurance is all about and this is really telling on the insurance companies.

(c)                Location of the insurance company is one of the problems being encountered by insurance intermediaries.

(d)               The find it difficult to transact business in a small area. Take for instance, an insurance company whose Head office is at Ngwo will be loosing a lot while other competitors situated in the city such as Lagos are progressing.

(e)                Competition among the brokers and agents by using unorthodox method which is due to variation in rates. There has been always difficult among these intermediaries. Another problem is what affects the insurance companies also affect them.

1.3       OBJECTIVE OF STUDY

This study is aimed at achieving the following objectives.

1.                  To find out the causes of the problem that the intermediaries encounter.

2.                  The important of intermediaries in the insurance industry.

3.                  Who are insurance intermediaries.

4.                  To make suggestion on how to eradicate the problem.

1.4       SIGNIFICANT OF THE STUDY

The study will be of immense value to brokerage firm, the insurance companies, the general public and to student of insurance and other related fields.

The work will be of immense help to future researchers who will make their own investigation into this subject area.

The study will reveal the important of these intermediaries to the insurance company. Having mentioned some of the jobs done by the intermediaries, there are other areas by which they are useful to the company.

1.5              SCOPE  

The area of this thesis is Nigeria. The research is to find out the problems encountered by intermediaries and the causes.

1.6       DEFINITION OF TERMS

Brokers:        Person who buys and sells for others. And regarded as professional expert. The gives advice and recommends to people.

Agent: Person who acts for or who manages the business affairs of other.

Premium:                   A little consideration which the insured pays to the insurer in view of the risk insured so that if loss occur the insurer will put the insured in the same financial position he was before the loss.

Insured:          The party entitled to receive money under an assurance contract on the happening of a stated contingency.

Liability:        State of being liable or responsibility for an act.