The Problems and Prospects of Insurance Profession in Nigeria a Case Study Of Anchor Insurance Company Uyo
ABSTRACT
This study examined factors within insurance framework that affect insurance consumption in Akwa Ibom state in Nigeria, primary data were collected from 80 Insurance consumers Judgmentally drawn from 10 Insurance companies located in the state. Data were collected on accessibility and prompt payment of claims, knowledge of he use and importance of insurance professional activities by those selling insurance, nature of insurance policy statement and the overall corporate image. The data were analyzed using both descriptive and inferential statistics. The socio-economic characteristics of insurance consumers revealed that most of them were literate, mostly public servant, married and were still in their active ages. In accordance with our theoretical framework, our empirical results support the established relationship between insurance patronage and development in the state the study framework as a way forward for the development of a vibrant insurance market in Akwa Ibom state.
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
Since the end of the Second World War, the insurance industry the world over has experienced remarkable growth. Concurrent with this growth has been significant changes within the industry, the Nigerian insurance industry is not unaffected by this general growth of multiple line transition introduction of package polices, the universal banking system grassroots insurance the variable annuity, growth life insurance universal life policy, changes is regulatory framework, continued expansion of the social security system and the involvement of the government as a provider of private insurance are all part of the challenges with which the insurance industry most contend with (Ibok 2006. Soon, 1996).
Although the future of insurance industry in Nigeria appears bright, a number of unresolved problems still exist, of particular interest in the insurance marketing system, which has affected the consumption of insurance products. In Nigeria, this problem seems to be even more pronounced because of the level of literacy of the Nigerian populace. Insurance has remained one of the least purchased items within the financial market. Records reveal that about only 10 percent of the Nigerian population have insurance of any sort (Mordi, 1990, Wilson, 2004, and Oworen, 1991).
In general, this negative marketability of insurance products has also affected economic development. The problem has existed for along time and has increased some one with the sophistication of the Nigeria society which has grown knowledgeably in recent years (Ibok 2006). However, the increased importance as a provider of financial services and of investment funds in the capital market is especially pronounced in many developing countries is still very low little does one wonder what will be the future of this all important industry if this problems continue unabated.
1.2 STATEMENT OF THE PROBLEM
The large variation In insurance consumption across different economics of the world raises some importance questions about what are the causes of this variation and thus, what factors has affected insurance consumption? By assessing its role as a major financial intermediary, insurance has become a key source of long term capital encouraging the growth of capital markets (Catalen et al 2000, impavido and Musalem, 2000). Indeed sectarial studies have found sufficient evidences to suggest that the development of insurance industry is related to economics growth (ward and zerbruegg, 2000, webb and soon 1996).
Insurance has taken on an increasing importance as the a means for individuals and groups to manage their income risks (Osaka, 1992 and Njogu 1991) Moreso, empirical studies on changing insurance marketing on the one hand and consumption of insurance products on the other hand in Nigeria appears to be inadequate. As Mordi (1990) has rightly pointed out, figures are yet to be available in many activity areas of insurance. There are even question of adequacy of such empirical data. Lack of available data information invariably means lack of awareness and interest on the part of the consuming public. Therefore despite its apparent role in risk management and transfer, relatively few people in Nigeria appear to be appreciating this role. Some who buy it is made compulsory by law.
So far, studies on insurance marketing and consumption in Nigeria have focused on the entire country, little effort is made disaggregate performance across the different states or geopolitical zones if the country to determine of there is location specific problems, difference or regional factors that could influence insurance consumption.
This explains why the present study is concerned with the inactive implementation policies of insurance profession as a defeat in Nigeria with particular reference of anchor insurance company. It is within the context that this study attempts an empirical investigation of those institutional factures that exhibit insurance consumption in Akwa-Ibom state.
The Problems and Prospects of Insurance Profession in Nigeria a Case Study Of Anchor Insurance Company Uyo
1.3 PURPOSE OF THE STUDY
The general purpose of this study is to identify and examine those factors within insurance institutional framework that affect insurance consumption in Akwa Ibom State. This the specific objective includes.
(i) To determine the socio-economics characteristics of insurance consumers in Akwa Ibom State.
(ii) Marketing framework that may effect insurance consumption.
(ii) To analysis the effect or relationship between the identified factors and insurance consumption.
(iv) To explore avenues upon which a vibrant insurance market could be developed in the state.
1.4 OBJECTIVE OF THE STUDY
The objective of this study is to examine and appraise the problems that has being creeping this noble profession and also evaluate possible prospects which is a way forward for the insurance profession.
These are summarized by ascertaining the following:
(a) The effectiveness of the profession.
(b) The attitude of Nigeria toward the profession.
(c) The possible prospects of the profession.
1.5 RESEARCH QUESTION
This study was designed to provide answers to the following research questions.
(a) What is the socio-economics characteristics of the insurance marketing framework in Anchor insurance, Akwa ibom state.
(b) Which institutional factors within insurance marketing framework do affect insurance consumption?
(c) What is the relationship between institutional chrematistic (accessibility and prompt payment of claims, knowledge, use and importance of insurance, professional activities of those selling insurance, nature of policy statement and overall corporate image on the one hand and insurance consumption on the other hand?
(d) in what ways can insurance marketing and consumption be improved in Akwa Ibom state in particular and Nigeria in general.
1.6 SIGNIFICATE OF THE STUDY
This research was conceived out of the desire to empirically examine “the problems and prospects of insurance profession in Nigeria”. With reference to Anchor insurance profession company Uyo in Nigeria” Therefore the study is considered important in order to
(i) Determine the socio-economic characteristic of insurance consumers in Anchor insurance Uyo, Akwa Ibom State.
(ii) show cased the marketing framework that may affect insurance consumption.
(iii) Explore avenues upon which a vibrant insurance market could be develop in the state.
(iv) Analyze the effect or relationship between the identified factors and insurance consumption.