THE IMPACT OF INSURANCE SERVICES IN THE NIGERIAN ECONOMY
The purpose of this research work was to identify the impact of insurance services in the Nigerian economy. This is because most of Nigerians looks at insurance industry as a weak and poor industry with little or no impact in the Nigerian economy. However, the researcher carefully x-ray the implication of effective contribution of insurance services to the Nigerian economy and also review the relationship between insurance industry and other economic activities in Nigeria. The researcher also examined the role of the Nigerian insurance industry in the economic development of Nigeria. Based on the findings, the researcher observed that the majority of the Nigerians lack better understanding of insurance, the result of the testing indicates that insurance industry has made a tremendous impact in the growth and development of Nigerian economy and will do more.
1.9 Background of the Study
Insurance which has existed from thousands of years, has emerged in today’s world as a very large field With many dimensions and specification. Today’s world is dominated by great changes. Anywhere in the world, industrialization is becoming a truly world wide phenomenon-within the frame work which accompanied by the organization of independence within global interdependence, everything is trusted into new and large dimension including risk and uncertainty.
Insurance been one of the most important ways of organizing security is at the crossroads of both phenomena.
This assertion does highlight the unique position of the insurance industry in contemporary business world. It also put into focus the overwhelming scores that accrue to this commercial organization in the changing times of our society. The developing of the insurance industry has now come to be regarded as a key feature in the economics on-goings of the business world and so it is first natural that Nigeria when it finally attained independence in 1960 identified insurance as one of the economic activities. She is however witnessing some tremendous progress in the field.
Before the existing of modern insurance, man lived in a subsistence though the environment was still exposed to hazards of risks. (natural disasters and fire accidents) the gradual development of man’s totality of life (economics, social, political and of course technological) has been equally followed by exposure to society become complex, the need to eliminate these risks or ameliorate the effects they might have on man and society makes a way of achieving social security.
In the Nigerian economy, modern insurance, which is a follow-up to the traditional arrangements by the extended family and other traditional societies, and organizations (to help any members who suffered any loss by way of accident or death) is at the early stage of development. As a result of this, we are experiencing the usual problems of late comers. Those problems coupled with an array of socio-economic leaves us with wider scope for development in this filed. This not withstanding, the Nigerian economy is witnessing a tremendous impact has attracted the researcher’s interest and as such, hence carefully look at this industry in the economy; the technicalities of insurance and the volume of business operation.
However, the subject of insurance can never be discussed in isolation of its definition. Many writers and authorities in insurance literature have given several definition of the term “insurance”. These definitions of all