THE MANAGEMENT OF INSURANCE COMPANIES TOWARDS THE DEVELOPMENT OF BUSINESS ENTERPRISES
This project work titled the management of insurance company towards the development of business enterprises a case Study of Royal exchange assurance Nig. Plc. Kano. This research work intends to survey the role and the concept of insurance companies in business and in the sustainability of business enterprises in Nigeria. The researcher adopted a descriptive method of survey; the sample method use was sampling method. Both primary and secondary sources of data were used to obtain relevant information. The company has a total population of 100 employees. The sample size was 50 which is draw from the total population using Yaro Yamani formula.In my findings, it claims for those loss will be guaranteed. It is recommended that the insurance managers should do everything possible to train their staff on job and on insurance training. It is drawn to the phase of the insurance industries with a view of determining adaptability and sustainability, taking into consideration the peculiarity of Nigeria circumstance. Take into consideration, the recapitalization exercise in the companies rather than financial effects and also to proffer solutions to problems hiking around the insurance companies.
Life is full of risk and every human being is confronted with possibility that one day one of these hazards which form part of life may befall them because one financial loss or the other. The purpose of insurance is to indemnify the victims for the financial loss they might have suffered as a result of these risks. Risk is a concept that denotes a potential negative impact to an asset or some characteristic of value that may arise from some present process or future event. In everyday usage, risk is often used synonymously with the probability of a known loss. Paradoxically, a probable loss can be uncertain and relative in an individual event while having a certainty in the aggregate of multiple events see risk vs. uncertainty below. Risk is the possibility of an event occurring that will have an impact on the achievement of objectives. Risk is measured in terms of impact and likelihood.
Insurance was not set out to climate and cannot soften the blow in a purely financial sense of obtaining monetary compensation to the victims thereby placing them in a financial position.
1.1 BACK GROUND OF THE STUDY
Insurance as an industry did not exist in Nigeria until the later part of the twentieth century. However, there existed in Nigerian communities, some form of organize mutual social insurance schemes which had the future of modern insurance.
Apart from the early social insurance scheme, insurance as an industry is relatively new in Nigeria. The first operation branch of an insurance company was open in Nigeria in Lagos in 1921 by the Royal exchange assurance Plc. and it remain the only insurance company in Nigeria until 1949 when three British owned insurance companies were opened up.
1.2 STATEMENT OF THE PROBLEM
Owing to the negative factions surrounding the insurance industry in Nigeria, the activities of the industry have been subjected to various criticisms of those negative factions. We can identify good number of problems. Therefore, the statement of this problem of this study could be obtained based on the observation and critical analysis of the industry. Non payments of claims in the industry have become a faction that negatives the performance of the industry. Despite the factor, insurance company collect premium from their clients.
1.3 OBJECTIVE OF THE STUDY
As a general rule, there are hardly any differences between the aims and objectives of the insurance in Africa from those of similar ones operating elsewhere in the world. A brief examination of the aims of a typical insurance emphasizing those features that would be OD special interest to the prop actors and managers of insurance company in Africa will be useful. The objective of an insurance company may be summarized as follows;
1. To sell insurance cover to insurance consumers.
2. To settle all genuine claim family land promptly in accordance with law and be formed relevant insurance policy.
3. To run business or organization in such a way that it produce a fair to the shareholders who funded that capital with which the business was established.
1.4 SIGNIFICANCE OF THE STUDY
Insurance companies form a part of the very fabric of the economy and are indispensable to it in the modern state. They are vitally necessary because they are one of the most important vehicles for development and because of the security they give to entrepreneur, that policy holder and shareholders.
The availability of insurance maximizes the entrepreneurs uncertainty to the extent that some of the risks with which he is faced with can be translated, for a fix amount called the premium. He is to fully commit his assets to the operation of his business. This enables them to acquire the necessary confidence and tranquility of mind that are requisites to fruitful risk looking.
1.5 SCOPE OF THE STUDY
The researchers work would have been wide in nature; however, it has restricted itself to insurance company. Thus the study will focus and concentrate strictly on the role of insurance company towards the development of business enterprises. Insurance provide a means for industrial and societies to cope with some of the risks faced in everyday life. Earning capacity is asses that should be protected through insurance.
1.6 LIMITATIONS TO THE STUDY
A research of this nature is found to have a lot of limitations. Time factor was a serious problem encountered; the period given for the completion of this research work was share along with academic, nonacademic work which was necessary in relation with a completion of school in general. The time spread to include the distribution and gathering of questionnaire from respondents which was a problem of its own entirely.
Financial constraints can never be rule out in a situation like this, the money required for the running around, cost of materials etc.
1.7 STATEMENT OF HYPOTHESIS
In every study, there is an assumption on the variable of that study. This assumption tends to predict the outcome of the study. The hypothesis of this study is to asset the following;
HI: Insurance firms play a vital role in the development of nation economy.
HO: Insurance firms dont play a meaningful role in the development of nations economy.
1.8 DEFINITION OF KEY TERMS
OD: Organizational Development