Recapitalization in the Insurance Industry: Proposed Problems and Prospect

Performance of an determines the position of the nation in the world. The better the performance of an economy and the large economic resources it holds, the higher the level of influence of such country in the entire world.

There are many of human that form the economic chain of a nation. Among these human or commercial activities are oil and gas, manufacturing and construction, education, Banking, Insurance etc.

Among these activities, insurance sectors of the economy were examined in order to be refining tune. Insurance sector of the Nigeria economy has witnessed doldrums for the past three decades.

Recapitalization of insurance sector of the economy was ventured into to determine whether such a process can be one of the sound instrument to refine tune the Nigeria economy.

A lot has been gained from the recapitalization process of insurance sector and the process has resulted into a success.

The research method used is survey. The sources of data were analytical and descriptive. This focuses on the measurement of the insurance sector’s asset against the Gross Domestic product and the problems that could be encountered during the recapitalization process.

Data obtain from the analysis of the secondary sources is from 2006 edition of statistical bulletin published by the Central Bank of Nigeria, revealed that asset value against Gross Domestic Product (GDP) from 1987 till 1993 were progressing with (GDP) of the nation on a high side,

where as from 1994 till 1998 the value of asset were retrogressing with a little difference in the Nation GDP.

Table Of Contents

Title Page  i
Certification  ii
Dedication  iii
Acknowledgment  iv
Abstract  v
Table of Content  vi

CHAPTER ONE

• Introduction 1
• Background of the study 2
• Statement of the problems 4
• Research Questions 6
• Objective of the study 7
• Research Hypotheses 8
• Significant of the study 8
• Scope and Limitation of the study 9
• Plan of the study 11

Reference                12
CHAPTER TWO: LITERATURE REVIEW

• A Review of the Insurance Decree 1976 18
• Objectives of Insurance Regulation 22
• The Insurance Decree 1976 23
• Paid up Share Capital Requirements 24
• Investment 27
• Manpower Provisions 30
• Insurance Provisions 31
• Premium Rates/Commission 34
• The Impact of Re-value Assets in Post-FEM Era and the Insurance Industry   40

References                    103
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

• Research Design 104
• Statement of Research Questions 104
• Statement of Research Hypothesis 105
• Sources of Data 106
• Model specification 107
• Explanation of the Equations 108
• Appriori Expectation 109
• Limitations of the Methodology 109

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

• Data presentation 110
• Data Analysis 110
• Interpretation of the Result 116

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

• Summary of findings 117
• Conclusion 118
• Recommendations 119

Bibliography                 121

Introduction

Background Of Study

Government reforms in the insurance industry through the current process of recapitalization and consolidation are to restore confidence of the public in the market and enhance international competitiveness of local operators.

Consequently, the principal objective of the reform is to have emergence of bigger and stronger players in the industry with enhanced capacity.

The Nigeria insurers in time past had operated on marginal scale and that accounted for the reason why the market had not benefited much, especially in the oil and energy business.

The country is much more likely to experience sustained growth if her insurance market develops properly.

Insurance market development is related to improve financial sector performance and insurance markets do not develop adequately without both public and private sector development in their infrastructure.

Bibliography