ABSTRACT
The assessment of adequate risk recognition and management in Nigerian insurance industry is aim at determining the effectiveness of how the insurance industry handle risk that is being transferred to them and also to assess how insurance companies render their services. The statement of problem includes lack of adequate claims settlement procedures which are characterized with bureaucracy and lack of proper fixed or computed premiums which endangers the solvency and profitability of the insurance companies. The researcher finds including, prompt settlement of claims by the insurer encourages high level of patronage from its client and also premium is charged by the insurer according to the type of risk undertaking. Finally, insurers should not just issue policies, they should engage in careful diagnosis of what insurance products their clients deserve. By adequately monitoring the risk covered through professional advice and risk survey.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Insurance is a security device used by the inured to protect himself against a risk purchased from the insure and the right to be indemnified if the risk should materialize. The purchase price which the insured pays the insurer is known as the premium, often paid on monthly or annually basis and the insurer in return compensate the insured in event of loss.
THE DEVELOPMENT OF INSURANCE INDUSTRY IN Nigeria begins in 1950 during the colonial era period characterized by a market dominated by Europeans company which virtually held the monopoly of insurance business over the continent of Africa. At that time most Nigerians citizens are not aware of insurance and it importance. After Nigeria independence in 1960 most of the industries managed by the Europeans are been taken over by Nigerians. As they begin to managed those companies, the awareness of insurance and it importance was known. In the 1980, insurance companies operating in Nigeria begins to grow in numbers and the need to enlighten the citizens on insurance was carried out by some of the employee of those companies. Who went to the street to educate they people on the danger of risk that might occur in many ways, such as fire, theft, accident, rain storms etc. and the responsibility of the insurance is to compensate the unfortunate person who has suffered losses by placing him in the same position as he was before.
