PROPER UNDERWRITING AND ITS IMPACT IN PROMOTING INSURANCE IMAGE IN NIGERIA (A STUDY OF NIGER INSURANCE PLC)
- Project Research
- 1-5 Chapters
- Quantitative
- Simple Percentage
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
BACKGROUND OF THE STUDY
Insurance companies are legal entities that cover the financial impact of it that derives from the occurrence of certain unexpected insured events affecting the insured. They offer this benefit in exchange for payment of a predetermined amount of money called premium. By pulling similar risks together insurance companies transform the unpredictability of the occurrence of an event to an individual into expected events affecting any one of the insured participants. In underwriting insured risks, insurance companies do accepts risks that have different risk profile but the acceptance of those risks are under different conditions, like charging an extra premium, applying exclusions or waiting periods to restore the necessary risk homogeneity in the portfolio. There are also problems in carryout these activities because of low modern technology and facilities in place to enhance underwriting process, lack of professionals in underwriting department of insurance industry which brought to foe low confidence on investors who want to invest. This study therefore is exploratory study to determine the impact of proper underwriting in promoting insurance image in Nigeria (Jude, 2019).
However, Niger insurance underwriters have developed a sense to assess the anti-section effect in the process of assessing the risk they use two important considerations when assessing a risk, the physical risk is related to the physical characteristics of the insured object that may increase the possibility of a claim. On the other hand, the moral risk is related to the applicants’ reputation, financial position or criminal record. When underwriters evaluate applications for insurance they follow a very thorough thought process to identify the moral and the physical risk. In promoting insurance image in Nigeria, the insured will always know more than anyone else about the perils to which their own goods, business or health are exposed to. This underwriting is performed each time an insurance application is taken. Its purpose is to determine if application represent risks acceptable to the insurer to determine whether or not the insurer will issue a policy to proposer (Peter, 2009). The central impact of the underwriting is to help the insurance company in creating homogeneous portfolio by evaluating the risks and accepting them under conditions that make them behave similarly which is geared towards promoting good insurance image.
1.2 STATEMENT OF THE PROBLEM
The following are my statement of the problems:
Poor insurance image due to lack of improper underwriting as a result of low modern technology and facilities in place to enhance underwriting process. Inadequate assessment of risk due to lack of professionals which brought to foe low confidence on the insured. Inability to provide best advice with respect to risk protection for the individual and companies looking for protection
1.3 OBJECTIVES OF THE STUDY
The researcher tends to achieve the following:
- To promote insurance image and assess the factor that will enhance proper underwriting process.
- To describe the implication of non-professionals and to promote insured’s confidence towards insurance.
- To ascertain whether underwriters advice their clients looking for protection.
1.4 RESEARCH QUESTIONS
a. What factor enhances proper underwriting process?
b. What implication do non-professionals exhibit in the expectation of the insured?
c. What form of advice do underwriters give to their client?
1.5 RESEARCH HYPOTHESIS
H0: Proper underwriting does not promote insurance image.
H1: Proper underwriting promote insurance image.
1.6 SIGNIFICANT OF THE STUDY
This work will benefit the underwriters in the sense that it would help them to assess risk in order to understand the major loopholes and challenges they will face in underwriting of risk in the service to their client.
It will also benefit the general public in order to help them to know the various risk exposure to embark upon and how to insure them effectively and efficiently.
It will also aid the candidate or student having HND in insurance who will carryout further research on the related topic in the future.
1.7 SCOPE OF THE STUDY
The study will examine the impact of proper underwriting in promoting insurance image in Nigeria. The study will be carried out in Niger Insurance PLC, Enugu State
1.8 LIMITATION OF THE STUDY
Like in every human endeavour, the researcher encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. More so, the researcher simultaneously engaged in this study with other academic work. As a result, the amount of time spent on research will be reduced.
1.9 DEFINITION OF TERMS
Underwriter: The person who reviews an application for insurance and decides if the applicant is acceptable and at what premium rate.
Underwriting: The process an insurance company uses to decide whether to accept or reject an application for a policy.
Premium: The amount paid by an insured to an insurance company to obtain or maintain an insurance policy.
Policy: The contract issued by the insurance company to the insured which serves as an evidence of agreement between the insurance company and the insured.
Insured: The person or organization covered by an insurance policy.
Related Project Materials
ASSESSMENT OF QUALITY CONTROL TECHNIQUE AND ITS IMPACT ON THE PROFITABILITY IN MANUFACTURING ORGANIZATIONS
BACKGROUND OF THE STUDY
The ultimate aim of any manufacturing company is the production of quality good...
PARENTAL INVOLVEMENT ON STUDENTS’ ACADEMIC ACTIVITIES IN SELECTED SECONDARY SCHOOLS
ABSTRACT
This study was carried out to examine parental involvement on students academic activities in...
AN ASSESSMENT OF LEADERSHIP STRATEGIES ON ORGANIZATIONAL PERFORMANCE
Abstract
This research is on the assessment of organizational Leadership Strategies on Organizational Performance. The r...
THE IMPACT OF ETHNICITY ON NIGERIA PUBLIC SERVICE
BACKGROUND TO THE STUDY
The term ‘ethnicity’ has its roots in the Greek term ethnos/ethniko...
BRAND DIFFERENTIATION AND POSITIONING FOR MAXIMUM COMPETITIVE ADVANTAGE
BACKGROUND TO THE STUDY
Branding has been around for centuries as a means to distinguish the goods of one producer from...
AN INVESTIGATION INTO THE CAUSES OF POOR PERFORMANCE AMONG STUDENTS IN SELECTED SECONDARY SCHOOLS IN BILLIRI L.G. A. OF GOMBE
BACKGROUND OF THE STUDY
The differential scholastic achievement of students in Nigeria has been a...
A Study of Rail Mass Transit in Lagos and its Environs.
Statement of the Problem
In spite of the rapid growth of Lagos in recent times, road transport remains the main means of transportation i...
ASSESSMENT OF RECORDS CREATION AND MAINTENANCE FOR PROPER ADMINISTRATION IN ISLAMIC SCHOOLS IN ZARIA CITY KADUNA STATE
ABSTRACT
This study focused on Assessment of Records Creation and Maintenance in for proper administration in Islamic Schools in Zaria Ci...
HUMAN RESOURCE PLANNING AND ITS IMPACT ON ORGANIZATIONAL PERFORMANCE (CASE STUDY OF NNPC NIGERIA PLC)
BACKGROUND OF THE STUDY
The history of planning is old as man himself planning had started from the ancient era during t...
THE EFFECT OF SOCIAL MEDIA ON VOTER BEHAVIOUR [A CASE STUDY OF SOME SELECTED VOTERS IN LAGOS STATE]
Abstract
The advent of internet and technology has exposed majority of the global population to differ...
