ABSTRACT
Insurance companies are legal entities that cover the insured against certain unexpected occurrence of an event in exchange for payment of a predetermined amount of money called premium. In underwriting insured risks insurance companies do accepts risks that have different risk profile but the acceptance of those risks are under different conditions which they face a lot of challenges in carrying out these activities because of low modern technology and facilities, lack of professionals in underwriting department which brought to foe low confidence on the insured. This study therefore is exploratory study to determine the impact of proper underwriting in promoting insurance image in Nigeria. The population of the study comprises both underwriters and insured of Niger Insurance Plc Enugu. Both primary and secondary data were collected. The data was analyzed by the use of chi-square statistical method. The study came out that for proper underwriting in promoting insurance image, the insurance need to establish rules which will result in securing an average proportion of good risk. It was recommended that the underwriters should be exceptionally in the selection of their applications they should not be too glad in receiving premium but too reluctant in meeting their claims.
TABLE OF CONTENTS
Title Page i
Approval Page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vi
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the Study 1
1.2 Statement of Problems 3
1.3 Objective of the Study 3
1.4 Research Questions 3
1.5 Research Hypothesis 4
1.6 Significant of the Study 4
1.7 Scope and Limitation of the Study 4
1.8 Definition of the Terms 5
CHAPTER TWO
LITERATURE REVIEW 7
2.1 An Overview 7
2.2 Historical Development of Underwriting 9
2.3 Traditional Underwriting Practice 10
2.4 How Underwriters Assess Risk in Insurance Industry 12
2.5 The Impact of Underwriting on the Nigeria Economy 13
2.6 The Effect of Improper Underwriting on the Insurance Industry 14
2.7 Problems Facing Underwriting in Assessment of Risk 15
2.8 Prospect of Proper Underwriting and Management 16
2.9 Historical Development of Niger Insurance Plc 17
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 An Overview 19
3.2 Sources of Data 19
3.2.1 Primary Data 20
3.2.2 Secondary Data 20
3.3 Population of Study 21
3.4 Sampling Size Determination 21
3.5 Questionnaire Administration 23
3.6 Method of Data Analysis 23
3.7 Validity and Reliability of Instrument 24
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 An Overview 25
4.2 Data Presentation 25
4.3 Data Analysis 26
4.4 Testing of Hypothesis 33
4.5 Discussion of Findings 36
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings 37
5.2 Conclusions 38
5.3 Recommendations 40
5.4 Suggestion for Further Studies 42
Bibliography 43
Appendix 47
Questionnaire 48
Insurance companies are legal entities that cover the insured against certain unexpected occurrence of an event in exchange for payment of a predetermined amount of money called premium. In underwriting insured risks insurance companies do accepts risks that have different risk profile but the acceptance of those risks are under different conditions which they face a lot of challenges in carrying out these activities because of low modern technology and facilities, lack of professionals in underwriting department which brought to foe low confidence on the insured. This study therefore is exploratory study to determine the impact of proper underwriting in promoting insurance image in Nigeria. The population of the study comprises both underwriters and insured of Niger Insurance Plc Enugu. Both primary and secondary data were collected. The data was analyzed by the use of chi-square statistical method. The study came out that for proper underwriting in promoting insurance image, the insurance need to establish rules which will result in securing an average proportion of good risk. It was recommended that the underwriters should be exceptionally in the selection of their applications they should not be too glad in receiving premium but too reluctant in meeting their claims.
TABLE OF CONTENTS
Title Page i
Approval Page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vi
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the Study 1
1.2 Statement of Problems 3
1.3 Objective of the Study 3
1.4 Research Questions 3
1.5 Research Hypothesis 4
1.6 Significant of the Study 4
1.7 Scope and Limitation of the Study 4
1.8 Definition of the Terms 5
CHAPTER TWO
LITERATURE REVIEW 7
2.1 An Overview 7
2.2 Historical Development of Underwriting 9
2.3 Traditional Underwriting Practice 10
2.4 How Underwriters Assess Risk in Insurance Industry 12
2.5 The Impact of Underwriting on the Nigeria Economy 13
2.6 The Effect of Improper Underwriting on the Insurance Industry 14
2.7 Problems Facing Underwriting in Assessment of Risk 15
2.8 Prospect of Proper Underwriting and Management 16
2.9 Historical Development of Niger Insurance Plc 17
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 An Overview 19
3.2 Sources of Data 19
3.2.1 Primary Data 20
3.2.2 Secondary Data 20
3.3 Population of Study 21
3.4 Sampling Size Determination 21
3.5 Questionnaire Administration 23
3.6 Method of Data Analysis 23
3.7 Validity and Reliability of Instrument 24
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 An Overview 25
4.2 Data Presentation 25
4.3 Data Analysis 26
4.4 Testing of Hypothesis 33
4.5 Discussion of Findings 36
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings 37
5.2 Conclusions 38
5.3 Recommendations 40
5.4 Suggestion for Further Studies 42
Bibliography 43
Appendix 47
Questionnaire 48