THE ROLE OF INSURANCE COMPANIES IN THE DEVELOPMENT OF NIGERIAN ECONOMY
ABSTRACT
Insurance by nature, is not a modern day concept. It has a development history of so many – centuries. The art of insurance has grown as a result of individual, corporate bodies and government need for the fortunes of lives and business. Therefore, the types and classes of account were those which were expected to show to the ventures, i.e. the owner of business, government and individuals. It is based on this that the researcher, therefore, focused this study on the role of insurance companies in the development of Nigeria economy. Hence, the general objective of the study is aimed at ascertaining the roles which insurance companies plays in the development of Nigerian economy. Thus, in chapter one, retrospective review of historical development of insurance was carried out, this is following by the background of the study, objectives of the study, research-question and scope of study. Chapter two takes care of the literature review and was carried out in seven-subheadings, evolution of modern insurance in Nigeria, the fists that may be insured, classes of insurance, the Nigerian Insurance market. Finally, chapter three really deals with the summary of findings, which is based on the observations of chapter two. Then conclusion was made on the entire research carried out.
TABLE OF CONTENTS
Abstract
Table of content
CHAPTER ONE:
1.0 Introduction
1.1 Background of the study
1.2 Objectives of the study
1.3 Definition of terms
CHAPTER TWO:
2.0 Literature Review
2.1 Origin of Insurance
2.2 Evolution of Modern Insurance in Nigeria
2.3 The risks that may be insured
2.4 Classes of Insurance
2.5 The Nigerian Insurance Market
CHAPTER THREE:
3.0 Summary of Findings
3.1 Discussion of findings
3.2 Conclusion
3.3 Recommendation
Bibliography
CHAPTER ONE
1.0 INTRODUCTION
Insurance is the modern means of protecting himself against losses. It is the device, by which man is able to protect himself against risk. In other words, insurance is the system where an insurance company upon the receipt of a certain amount of money from a person, agrees to pay compensation or render certain services, to the person, if, and whenever that person suffers the kind of loss that was specified in the insurance agreement. What this means is that insurance is the means by which people can save money to take care of unforeseen dangers and accidents. When a person agrees to take insurance, policy to protect himself against certain accidents, he will pay a sum of money (which is called premium) to the insurance company. Once the insurance company (who is called the insurer) accepts that premium from the person who intends to take insurance cover (such a person is called the insured) the insurer has thus agreed to pay an amount of money (called claims or compensation) to the insured whenever the insured loss occurs. This agreement is usually contained in a document called a policy. Premiums, that is the cost of purchasing an insurance, are not fixed arbitrarily. They are usually calculated by insurance experts, mathematicians called actuaries. High risks usually attract high premiums. For instance, if a 20-year old man is taking a life insurance policy, his premium will be much less than that of an 80-year old man who insists on taking a life insurance policy.
