MANAGEMENT OF INSURANCE COMPANIES IN NIGERIA A CASE STUDY OF UNIC INSURANCE PLC
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ABSTRACT
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This research work was aimed at determining the impact on management of insurance companies in Nigeria with particular reference to UNIC INSURANCE PLC
         A structured questionnaire made up of a little combination of some dictatorship and open ended questions was developed and distributed to a total of 80 male and female employees of UNIC INSURANCE PLC.
         The data collected were analyzed using percentages, mean    and rank order. Based on the above major findings include;
1,      That the human and non-human resources available in the    insurance company are not adequate.
2.      That UNIC INSURANCEPLC has not experienced any form of     friend.
3.      Under interference and insanity of the job/position of  supervisions affect the objetinty of their reports and       recommendations.
4.      That non-implementation of previous reports affect the        function     of supervisors. Â
         Based on these findings, the following efficiency and   effectiveness in the management of insurance companies.
a.                That Insurance companies should use delegation as a supervisory strategy to be in professional touch with all the department in the insurance company.
b.                A programme of in-service education and training should be given to staff on regular basis to enable them get abreact with the changing demand of time him.
c.                 Insurance companies should consistently organize seminars .Staff meeting, individual conferences, professional lectures and provision of office bulletins
d.                Staff safety and welfare packages must be adequately assured for proper continuity.
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TABLE OF CONTENT
Title page                                                                               ii
Approval page                                                                       iii
Dedication.                                                                             iv
Acknowledgement                                                                  v
Abstract                                                                                 vi
Table of contents                                                                    viii
CHAPTER ONE
Introduction                                                                           1
1.1           Background of the study                                              1
1.2           Statement of problems                                                  3
1.3           Purpose of the study                                                     4
1.4           Test of Hypothesis                                                       5
1.5           Significance of the study                                               5
CHAPTER TWO
Review of related literature                                                    8
2.1           insurance company organization                                  8
2.2           Under writing                                                               11
2.3           Theory of rating                                                            21
2.4           Premium rating in non-life insurance                            23
2.5           Premium change in life insurance                                  25
2.6           Sources of insurance company fund                             27
2.7           The investment of insurance company fund                 30
2.8           Insurance company account                                         31
2.9           Summary of the review literature                                 32
CHAPTER THREEÂ Â Â Â Â Â Â Â Â Â Â Â Â Â
Research methodology                                                           34
3.1           Area of study                                                                34
3.2           Population                                                                    34
3.3           Sample and sampling procedure                                   34
3.4           Instrument for data collection                                       36
3.5           Validation of research instrument                                 37
3.6           Reliability of research instrument                                 38
3.7           Administration of the research instrument                   37
3.8           Method of date analysis                                                39
CHAPTER FOURÂ Â Â Â Â Â Â
Data presentation and results                                                 41
4.1           Date presentation and analysis                                     41
CHAPTER FIVE
Discussion of results                                                              48
5.1           Discussion of findings                                                 48
5.2           Conclusion                                                                    51
5.3           Recommendation                                                          52
5.4           Limitation of study                                                       54
Appendices                                                                   56
CHAPTER ONE
INTRODUCTION
1.1Â Â Â Â Â Â Â Â Â Â Â BACKGROUND OF THE STUDY
The management of an insurance company, like any other business outfit, has an aim or purpose to pay claim in return for payment of premium. The insurance company undertake numerous activities in their operation usually assessing the extent to which the risk presented in any respect departs from normal and if so, to what extent additional hazard can be mitigated at what rating consideration. A process known as premium rating is used to decide vohat price you should change to. The premium price should reflect the claims list and expenses associated with the contract but also include an allowance for the insurer profit margin, this allowance depends on the level of competition in the relevant insurance market.Â
Like every other business if the insurance companies want to increase the amount of business they undertake (at the right price) and attempt to do this involves different system since company differ in their degree of reliance on a direct sales force rather than using brokers and also in the amount they spend on advertising. Also insurance company cannot pay all claims out of revenuer received for premium and investment income, because the timing of these payments and receipts cannot be co-coordinated, they must therefore maintain a fund that can be used to pay claims, such funds are also necessary in the case claims are unexpectedly large. In many classes of insurance fund are accumulated carefully investment of these funds will allow insurers to earn interest income and make capital again.
   More so, the insurers may be aware that certain potential claims payment may exceed his financial resources. He will therefore wish to pass on some of the liabilities for the claims to another insurer by buying insurance like other enterprise, insurers make payment to creditors (claims to insure commission agents) and receive money from debtor (such as premiums) They ought then compile accounts for internal management, shareholders and the taxation and supervisory authorities. A major problem with these is that insurers liabilities that the potential claims payments may not be know and must therefore be estimated. Insurance companies must pay co-corporate with tax value added tax and capital gain tax.
1.2Â Â Â Â Â Â Â Â Â Â Â STATEMENT OF PROBLEMS
   i    Based on the fact that every successful company         weather profit or non-profit oriented in Nigeria lies on       its management.
ii.      Secondly goes majority of Nigerians do not appreciate         the    role insurance industry pay in the economic development of this country.
         iii.     Another striking factor that off this research work is                      the fact that our people appear not to understand the            impact insurance could have in national development.
         v.      There is also the problem of non-challant attitude of             most Nigerians in embracing the idea of insurance                          coverage as one of the veritable instrument for the                           national development in developing countries. It is                        therefore on the foregoing premise that this research             work is necessary in the first instance.
1.3 Â Â Â PURPOSE OF THE STUDY
1.                To what extent does insurance in Nigeria helps in solving economic problems in building of the nation
2.                To what extent does the non-challant attitudes of some people affect nation development.
3.                To what extent does is the usefulness of insurance of the manage management; serve as a reference point for the self-help and self-reliance.
4.                To what extent has Government gone to curb the problems associated with insurance management as regards development?Â
1.4Â Â Â Â TEST OF HYPOTHESIS (NULL)
In the course of the study (4) hypothesis were treated these include Hoi there is no significance benefits derived by common man from insurance fund and management. Ho2 There is no significant evidence to prove that some people have non-challant attitude towards insurance industries.
Ho3 There is no usefulness of insurance management as reference point for self-help and self-reliance.
Ho4Â Â there are many identified problems associated with insurance management towards national development.
1.5Â Â Â Â SIGNIFICANCE OF THE STUDY
A work of the nature is not without significance or relevance to some people, group and companies alike. It is on this basis that the research outlined the following significance of the study.
i.       This study provides background for the enlightenment         of the masses to understand the need for insuring      reasons to insure, how to insure and so on.
ii.      the study on insurance company management and       practice in Nigeria entails giving detailed enlightened to the insuring and general public on how the insurance          industries are being managed and practice.Â
iii.     It is vital for the masses to know and understand some         terminologies in insurance duties and responsibility of       each department and staff in an insurance company.
iv.     This research work will serve as a study to ascertain this process of assessing risk proposed for insurance and fixing proper premium rate, which is otherwise know as underwriting.
         v.      Knowing how to re-insure which helps to reduce his             ultimate liability warranties and condition of insuring                   also  criteria of the risk accounts of the company.
         vi.     The study will assist in identifying various problems                     associated with insurance management towards                          national economy.
         vii.    It will at the same time save as a reference point to               many itching to insure to encourage them and to help                  in knowing how to chose an insurance company of his             choice.
         viii.   At the end of this research work, many people in our            society will be able to correct their mistakes and                          ignominious approach towards insurance management                  and its importance towards improving living standard                   and   other economic development in the nation.Â
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