Evaluating The Impact Of Reinsurance In The Development Of Insurance Practice In Nigeria

ABSTRACT

In the most widely accepted sense, reinsurance is understood to be that practice where an original insurer, for a definite premium, contracts with another insurer (or insurers) to carry a part or the whole of a risk assumed by the original insurer. By insurers we mean all persons, partnerships, corporations, associations, societies, associations operating as Lloyd's, inter-insurers or individual underwriters authorized by law to make contracts of insurance. We may define insurance as an agreement by which one party, for a consideration, promises to pay money or its equivalent, or to do an act valuable to the insured, upon the happening of a certain event or upon the destruction, loss or injury of something in which the other party has an interest.

The insurance business is therefore the business of making and administering contracts of insurance. 

Insurance contracts are of two types.

-Those which engage merely to pay a sum of money on the happening of an event, or 

-merely to begin series of payments on or after the happening of a certain event, are contracts of investment.

Contracts of insurance which engage to pay money or its equivalent, or the doing of acts valuable to the insured, upon destruction, loss or injury involving things, are contracts of indemnity.

And so, reinsurance may be second insurance of (a) contracts of investment and/or (b) contracts of indemnity. 

From the light of the above assertions, this research work titled “Evaluating the impact of reinsurance in the development of insurance practice in Nigeria” was carried out using the standard five chapter project format. 

As a descriptive survey, the study comprised 50 insurance companies in Lagos State, Nigeria out of which a sample of 10 companies were selected. Out of the 20 life and 30 non-life insurance companies in the sample, 4 life and 6 non-life insurance were selected using random sampling techniques. The instrument used for the study was a questionnaire designed, validated and found reliable for the study. Chi-square method of analysis was employed in the test of hypothesis of this study.

Finally findings, recommendations and conclusions on the subject matter were presented at the last chapter of this work.

TABLE OF CONTENTS

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

CHAPTER ONE

1.1 BACKGROUND OF STUDY 

1.2 STATEMENT OF PROBLEM

1.3 PURPOSE OF STUDY

1.4 SIGNIFICANCE OF THE STUDY

1.5 SCOPE AND LIMITATION

1.6 RESEARCH QUESTIONS

1.7 RESEARCH HYPOTHESIS

1.8 DEFINITION OF TERMS

CHAPTER TWO

LITERATURE REVIEW

2.1 ORIGIN AND DEVELOPMENT OF REINSURANCE- the foreign perspective

2.1.1 REINSURANCE IN THE FIRE INSURANCE BUSINESS

2.2 THE IMPACT OF INSURANCE PRACTICE ON ECONOMIC GROWTH

2.2.1 General or non-Life Business

2.2.2 Life Assurance Business

2.3 ORGANISATION OF INSURANCE COMPANY

2.3.1 UNDER WRITING DEPARTMENT 

2.3.2 CLAIMS DEPARTMENT 

2.3.3 REINSURANCE DEPARTMENT

2.3.4 FINANCE DEPARTMENT

2.4 PURPOSE OF INSURANCE COMPANY

2.4.1 PROMOTION OF CONFIDENCE

2.4.2 POOLING OF INVESTMENT FUNDS

2.4.3 RESERVED FUND RELEASE

REFERENCES

CHAPTER THREE

RESEARCH METHODOLOGY

3.1SOURCES OF DATA

3.2POPULATION CHARACTERISTICS

3.3NATURE OF DATA ANALYSIS

3.4 SAMPLE SIZE

CHAPTER FOUR

DATA ANALYSIS

4.1 RESULTS AND DISCUSSION

4.2 DISCUSSION 

CHAPTER FIVE

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1 FINDINGS

5.2 CONCLUSIONS

5.3 RECOMMENDATIONS