THE GROWTH ROLE AND PERFORMANCE OF INSURANCE INDUSTRY IN DEVELOPING COUNTRY
The main purpose of this research work is to examine the historical background of the Nigerian insurance industry with emphasis on the development of modern insurance industry in Nigeria, the role and performances of the insurance industry as well as the clarification of insurance business in Nigeria and to ascertain whether the growth of insurance industry has been consistent with the social economic development of the country. Examination of the scope and structure of the insurance industry as it may effect the growth and development of the country. The research study is divided into five chapters, thus; chapter one deals with background of the study, statement of the problems, objective of the study, research questions, significance of the study, the scope and limitations of the scope and definition of terms; chapter two deals with literature review as they related to the topic of study. Chapter three discusses research methodology subdivided into seven segments. Chapter four deals with the summary of major findings while chapter five deals with the conclusion and recommendations for efficiency and performances of insurance industry in under developing country.
1.1 BACKGROUND OF THE STUDY
British merchants introduced insurance business in Nigeria. Before then there were some existing traditional systems of risk sharing which is known as primitive terms of natural and social insurance schemes. The age grade associations, claim union were some mutual insurance like schemes for showing benevolence to their members who had suffered some misfortune, such as death, ill-health, fire ravages.
In 19th century the British merchant introduced insurance business in Nigeria. The modern insurance structures developed with a lot of legal implications resulting in expressly and documented legal relationship which turned out to be control of insurance. Falegae J.I. (1991) described insurance as a contract between two parties where one of the parties called the insurer undertakes to indemnity the other party called the insured after payment of consideration called premium. Insurance deals with risk which is a probability that an event will turnout to be unfavorable. More importantly, the contract of insurance are governed by the general principles of contract. But on the other account of their special nature, all contract of insurance are in addition governed by fundamental principles of utmost good faith, subrogation and proximate cause. It was in these fundamental principles that the validity of insurance contract depends.
Firstly, insurance was affected on adhoc bases usually through mutual or friendly help with the only objective of protecting their members against the insured risk. Under these, the terms, conditions and premiums were fixed in such a way that the insurance funds merely paid its way.