THE IMPACT OF PROPER UNDERWRITING IN PROMOTING INSURANCE IMAGE IN NIGERIA (A STUDY OF NIGER INSURANCE PLC)

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