IMPACT OF MANAGEMENT INFORMATION SYSTEM (MIS) ON THE INSURANCE INDUSTRY IN NIGERIA

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Abstract

Management Information systems have become an integral part of every corporate organization, especially the insurance industry in facilitating organizational performance, planning process and the prospect of achieving organizational goals and objectives. The enormous numbers of employees engaged in the insurance sector coupled with numerous customers made decision taking and dissemination of information by the management time consuming thereby leading to inefficiency. In order to tackle this challenge it becomes imperative to introduce information systems into the management of the organization so as to facilitate decision-making. This study uses field survey responses from senior management staff of five different insurance companies to empirically examine the relationship of information systems as used by the management for decision-making, speed, availability of information and involvement of subordinates in decision-making. Simple percentage and Chi-square statistical method were used to analyze the data. However, the result of the study clearly indicated that information systems would expunge traditional, geographical and marketing limitations; hence the management of every organization is embracing information systems.

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Insurance businesses are today much more concerned about the effect of competition than they were a few years ago. They must react to the competitive threats not only from local source but also from regional, national and international source; likewise they must seek to explore all opportunities that are available in the immediate, national and Global environment. Deregulation has also increased competitive pressure for insurance organizations to survive, grow and prosper. In such a competitive environment, insurance managers must employ a lot of the resources at their disposal as efficiently as possible so as to accomplish the objectives and goals of the enterprise. Management Information System provides information in form of reports and displays to insurance managers and many business professionals (Munirat, Sanni and Kazeem, 2014).

Management information systManagement Information System takes into account integrative nature of information flow as well as the structuring of the organization around decision centers. Standards of performance are part of any good plans; hence, determination of standards like other aspects of the planning process depends on the availability of relevant management information system. Management information system aids the functioning and monitoring of an insurance organization. It also describes the components and resources to ensure the proper functioning of insurance.

em has changed the physical layout of offices to accommodate local networks and departmental integrated systems. It is also a formalized procedure to provide management at all levels and in all functions with appropriate information from all relevant source to enable them make timely and effective decisions for planning, directing, evaluating, and controlling the activities for which they are responsible for (Munirat, Sanni and Kazeem, 2014).

Moreover, the potential of management information system to provide firms competitive advantage has been a topic of interest to both practitioners and academicians over the last five (5) decades. This interest is reflected in the large number of studies that have examined the strategic value of performance of management information system and its impact on firm performance. This attention to performance of management information system stems from the fact that insurance organizations often make significant investment of time and financial resources in the acquisition of information technology and its services in recent times (Oladipo, 2012).