ABSTRACT
This study was
intended to evaluate the role of insurance company in the economic development
of Ghana in metropolitan insurance company. This study was guided by the
following objectives; to identify the role insurance play to the economy of
Ghana, to access the awareness among the general public about insurance in
Nigeria, to find out the problems facing the insurer and the insured in
Nigeria.
The study employed
the descriptive and explanatory design; questionnaires in addition to library
research were applied in order to collect data. Primary and secondary data
sources were used and data was analyzed using the t-test statistical tool at 5%
level of significance which was presented in frequency tables and percentage.
The respondents under the study were 30employees of metropolitan insurance
company. The study majorly focuses on the role of insurance companies in the
economic development of Ghana.
The study findings
revealed that the role
played by insurance to the organization was the development of trade and the
mobilization of fund; based on the findings from the
study, efforts should be made to improve insurance in Ghana.
TABLE OF
CONTENTS
Title Page - - - - - - - - - i
Approval Page - - - - - - - - ii
Declaration - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgement - - - - - - - v
Abstract - - - - - - - - - vi
Table of Contents - - - - - - - vii
CHAPTER
ONE – INTRODUCTION
1.1 Background of the Study - - - - -
1.1
Organizational Profile - - - - -
1.2 Background of the
Study - - - - -
1.3Statement of the problem - - - - -
1.4Objectives of the Study - - - - -
1.5
Research Questions: - - - - -
1.6Scope of the Study- - - - - - -
1.7
Significance
of the Study - - - - -
1.8 Limitation of the Study- - - - - -
CHAPTER
TWO – REVIEW OF RELATED LITERATURE
2.1 Introduction - - - - - - - - -
2.1 Definition of Insurance- - - - - - - -
2.2 Historical Development of Insurance- - - - - -
2.3Reasons for Insurance - - - - - - - -
2.4The
Importance of Insurance- - - - - - -
2.5The Insurance Market in Nigeria and its
General Structure
- - - - - - - - - - - - -
2.6The Insurer or Assurors in the Life Branch - - - -
2.7The
Insurance Intermediaries- - - - - - -
2.8
Principles of Insurance Contracts- - - - - -
2.9 Types of Insurance- - - - - - - - -
2.10
Functions of Insurance- - - - - - - -
2.11. The Role of Insurance in Economic
Development- - -
2.12.
The Public Perception about Insurance- - - - -
2.13.
Problems Facing the Insurance Industry in Nigeria -
-
2.13
Definition of Terms - - - - - - - -
CHAPTER
THREE – RESEARCH METHODOLOGY
3.1 Introduction - - - - - - - - -
3.1
Study Area - - - - - - - - - -
.3.2 Population- - - - - - - - - -
3.3
Sample Size- - - - - - - - -
-
3.4
Sampling Procedures - - - - - - - -
3.5 Data Collection - - - - - - - -
3.6 Methods of Data Analysis and Presentation - - -
CHAPTER
FOUR – DATA PRESENTATION AND ANALYSIS
4.0 Introduction - - - - - - - - -
4.1 Data Presentation and Analysis - - - - - -
4.2 Characteristics of the Respondents - - - - -
4.3 Summary
of Findings - - - - - - - -
4.4 Discussion of Findings - - - - - - -
CHAPTER
FIVE – SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 Introduction - - - - - - - - -
5.1 Summary - - - - - - - - - -
5.2 Conclusion - - - - - - - - - -
5.3 Recommendations - - - - - - - -
References
- - - - - - - - - -
Appendix - - - - - - - - - -
CHAPTER ONE
1.0
Introduction
The present biggest challenge is developing an economy of a
country’s sustainable growth and development to serve as a benchmark for
economies the world over. In order to live up to this challenge, most
governments’ direct their efforts towards obtaining and maintaining this
sustainable growth and development to ensure a better standard of living for
their people.
Nigeria, as well as any other, has always strived to improve her
status in the global economy. This can be proved by the measures being put in
place by past and present governments since independence. This has most of the
time been in the form of policy documents containing the development aims and
aspirations of the nation. The most recent policy document is the vision 2020
development programmed document which spells out the long term development
objective of Nigeria over a period of 10 years (2010 – 2020). It seeks to
establish where she wants to be in the future and the way forward and where on
the development ladder Nigeria lies as a nation.
In
this chapter, some of the topics to be discussed are background of the study
organizational profile, problem statement, objectives of the study, research
questions, scope of the study, and significance of the study and limitation of
the study.
1.1 Organizational
Profile
The insurance industry
has emerged prominently to serve as an institution meant to provide services
aimed at security industries against the various risk inherent in their
operation
Prominent and premier in the industry in Nigeria is the
Metropolitan Insurance Company (MET). It was incorporated in February 1962 by
Executive Instrument (EI) No. 17 which was passed under the statutory
Corporation Act, 1962 (Act 232). However, on August 28, 1995 it was converted
into a Public Limited Liability Company renamed Company Limited of Nigeria as
it is now called.
Metropolitan Insurance Company has it as its
mission to providing innovative, flexible and competitive financial products
and services to its customer’s general public through quality services,
extensive research and product management coupled with commitment to ensuring
financial liability. Despite the little attention given by the government, the
insurance industry has been playing a very important role in ensuring some degree
of security in industry and commerce. It is thus observed that insurance
industry when given the necessary attention could play a stranger complementary
role in ensuring growth and hence national economic and development.
However, the Koforidua branch of the
Metropolitan Insurance Company was opened in 1976 with the Regional Office in
the main market which is opposite the All Nations University. But on 15th May,
1987 the Metropolitan Insurance Company was moved from the old premises to
their new office complex located at the main commercial Centre of the town
which is opposite the central mosque.
1.2 Background of the Study
Several indicators have shown that, the
insurance industry is at the preliminary stage in that there are a lot of
competition and risk. According toRayness, H.E (1976), we can see that
insurance started thousands of years ago but still it is at the preliminary
stage as compared to the banking industry. It appears that people are not
patronizing insurance in Africa due to several reasons.
There is not enough education about insurance; people see it as a
cheat on the society. Most of the insurance activities are directed mostly to
the monthly income earners and government workers leaving the petty traders
aside.
Although it is by law that every car owner will have at
least some sort of insurance cover for the car that is the third party
insurance which seek to provide insurance for the innocent pedestrian and
other cars. Even this, people are running away from it but thank God the law
will deal with people who do not have insurance coverage for their cars.
A whole building will be there without any insurance coverage.
People feel reluctant to go for insurance because when they see the kind of
stress people go through before claiming their claims, it does not encourage
them to take insurance policy.
.Insurance
plays some vital roles in economic development. Due to the changing needs of
the economy of Nigeria, there is the need to ensure that proper education on
insurance is taken into consideration; the Government must also broaden the
laws on insurance by adding more to the motor insurance.
This
study therefore seeks to find answers to the questions and to assess the role
played by the insurance in the economic development.
1.3Statement of the problem
In the 21st century, many Countries are
moving from entrusting their security with the Banks to the Insurance companies
because of the dynamic and significant role Insurance Companies playin ensuring
security in the development of their economy.
Although these insurance companies have contributed
tremendously in the aspect of security to the development of the Nigerian
economy, and with all the efforts being made in creating awareness,
mostNigeriaians are still reluctant to take insurance because they do not see
the need for it. The difficulty nature of the insurance industry towards the
payment of claims makes it unattractive for third party insurers (commercial
vehicles) to undertake insurance policy.
This has really affected their growth and the roles they play in the
development of the Nigeriaian economy, hence the need to carry out a study into
theroles insurance play in
the contemporary Nigeriaian economy and assess the awareness of insurance among
the public.
1.4Objectives ofthe Study
The study into the assessment of the roles being played by the
insurance in the economic development of Nigeria seeks to achieve the following
objective
- To identify the role
insurance play to the economy of Nigeria.
- To assess the awareness among
the general public about insurance in Nigeria
- To find out the problems facing
the insurer and the insured in Nigeria
1.5
Research Questions:
The followings were the research question
- What role does insurance play
in the Nigeriaian economy?
- What is the levelof awareness
among the general public about insurance in Nigeria?
- What are the problems
facing e insured in Nigeria?
1.6Scope
of the Study
The research covers only
the Metropolitan Insurance Company (MET) of Nigeria, Koforidua branch. The
researcher chose Metropolitan Insurance Company of Nigeria Koforidua branch
because it is close to the school and the researchers could get easy access to
information.
1.8
Significance of the Study
The findings of the study will provide an input to the government
in the formulation of laws on the financial services industry. The study will uncover and bring the
important role being played by insurance economic growth and development.
Furthermore, it will be of much use to students who are undertaking research
work on similar issue. It may serve as a reference for them and also for
students studying courses in finance and insurance.
Lastly,
recommended solutions will help management in this sector to contain, problems
confronting the industry.
1.8
Limitation of the Study
The researcher in an attempt to gather data for
the research work faced the following difficulties. The researcher faced a
problem of time management. This is because combining lectures and other
academic commitments with this study which should be completed within three
months will really be a very hectic a task and can affect the findings of the
work.
The researcher also face financial problem. The
researcher has to use part of her pocket money to collect and process the
research data gathered from the insurance company and this can have effect on
the findings of the work. Also some respondents were reluctant to answer some
questions because they were confidential.
Another hectic problem is that, respondent to
questionnaires and interviews not willing or ready to give the researcher all
the necessary cooperation. This can affect the findings of the work. By
ignoring the researcher completely, others may also give misunderstand
responses or do “go and come later attitudes. All these constraints may affect
the result of the study in one way or the other.