THE ROLE OF NATIONAL INSURANCE COMMISSION (NAICOM) IN THE PROMOTION OF NIGERIA INSURANCE MARKET OPPORTUNITY
ABSTRACT: The Nigerian insurance market, like that of so many other countries around the world, has a long way to go in serving the needs of the ordinary people. Indeed, insurance is currently still very much for the elites and the formally employed. The insurance market here encountered challenges. The major is the issue of image, and this is being tackled headlong by the national insurance commission and other bodies in the industry like the Nigerian insurance association. The biggest challenge of the insurance industry is how to deepen insurance. The research work is design to examine the “role of national insurance commission in the promotion of insurance market opportunities in Nigeria”. The work portray the problems associated with insurance market in Nigeria; among when are low level of regulatory compliance by the insurance practitioners, absent of new product innovations, image problems, government inconsistency in policy formulation and so on. The objective of the study were also stated which are to identify the role of national insurance commission in the promotion of Nigerian insurance market; to examine the impact of recapitalization on the insurance industry and to identify the problems hindering the smooth running of insurance business in Nigeria. The research methodology and procedures at which the research was executed were examined.
TABLE OF CONTENTS
CHAPTER ONE – INTRODUCTION                         1
- Background of the Study                                        1
- Statement of Problem                                     4
- Objectives of the Study                                   4
- Research Questions                                         5
- Significance of the Study                                        6
- Scope and Limitation of the Study                    7
- Definition of Operational Terms                        8
CHAPTER TWO – LITERATURE REVIEW               10
2.1 Development of Insurance in Nigeria                 10
2.2 Nature of Insurance/Meaning of Purpose                   12
2.3 National Insurance Commission Overview           15
2.4Â Functions of NAICOMÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 18
2.5 Powers of the Commission                               20
2.6 Power of the Commission Board                       22
2.7 Market Development and Restructuring Initiative 23
2.8 Benefits of MDRI to Insurance Market                23
2.9 Contents of MDRI Programme                                 24
2.10 Problems of Insurance Market                                 29
CHAPTER THREE – RESEARCH METHODOLOGY           31
3.1 Source of Data                                                      31
3.2 Population of Study                                         31
3.3 Sample Size                                                   32
3.4 Instrument Used for Data Collection                  33
3.5 Validity and Reliability of Instrument                 33
CHAPTER FOUR – FINDING AND DISCUSSIONS   35
4.1 Summary of Findings                                      35
4.2 Discussion of Findings                                     36
CHAPTER FIVE – CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion                                                     38
5.2 Recommendations                                          40
5.3 Suggestion for Further Study                           41
Bibliography                                                   42
Appendix                                                       44
CHAPTER ONE
INTRODUCTION
1.1Â BACKGROUND OF THE STUDY
The contribution of insurance to economic growth is huge and unlimited. Insurance is of great importance to a modern society and in fact, economic growth is characterized by the soundness of a nations insurance market. Insurance promotes financial stability and reduces anxiety; it can substitute for government security programmes, facilitates trade and commerce; mobilizes saves; enables risk to be managed more efficiently; encourages loss mitigation and fosters a more efficient capital allocation.
