MANAGEMENT OF LIFE ASSURANCE FUND AND ITS EFFECT ON THE DEVELOPMENT OF NIGERIA INSURANCE INDUSTRY
ABSTRACT
It is common to see reports of business failing than business succeeding. Almost always, the failure or success of a business can be attributed to its management. When a business is mismanaged, it will lead to liquidation, the company will not meet their solvency margin thereby running away from their obligation as to settle claims which in turn portray ugly insurance image. This study therefore is exploratory study designed to determine how life assurance funds are properly managed. The population of the study comprises both staff and customers of Selected Insurance firms. A sample size of fifty (50) was selected made up of 20 staff and 30 customers. Both primary and secondary data were collected. Questionnaire coupled with personal interviews were the main research instrument. The data was analyzed by the use of chi-square statistical method. The study came out that for proper management of life insurance fund, the premium should be invested both in short and long term investments so that insurance company will meet their obligation as to settle claims. It was recommended that all the stakeholders, including management of insurance companies, policy makers and policy holders should collaborate and come out with conducive business climate to ensure effective management of life assurance funds for greater returns to investors.
TABLE OF CONTENTS
CHAPTER ONE:
INTRODUCTION
1.1    Background of study                   
1.2    Statement of problem                  
1.3    Objectives of the Study                   
1.4    Research Questions                        
1.5    Research Hypothesis                 
1.6    Significant of the study                   
1.7    Scope and Limitation of the Study         
1.8    Definition of the Terms                    
References
CHAPTER TWO
Literature Review            
2.1    An overview                        
2.2    Historical Development of the case Study    
2.3    History of life Assurance Programm            
2.4    Meaning and purpose of fund                 
2.5    Management of Insurance Fund           
2.6    Model to guide Life Assurance Fund           
2.7    Problem encountered in the investment of insurance
Fund                             
2.8    Prospect of Adequate Management             
References
CHAPTER THREE
Research Methodology and Design
3.1    An overview                          
3.2    Sources of Data                    
3.3    Population of study                    
3.4     Sampling Size Determination        
3.5    Questionnaire Administration        
3.6    Method of Data Analysis                      
    References
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS                
An Overview                           
4.1    Data Presentation                  
4.2    Testing of Hypothesis                     
4.3    Discussion of Findings                       
References
CHPTER FIVE
SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATION                    
5.1    Summary of Findings                  
5.2    Conclusions                               
5.3    Recommendations                           
5.4    Suggestions for Further Studies        
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
An insurance market is made up of sellers of the insurance that is the insurance companies which provide covers for various types of risks  life, motor, accident, fire and marine and purchasers of insurance such as trading companies, merchants, individuals etc and intermediaries between the sellers and purchaser, namely insurance agents and brokers. The sellers are known as insurers (or assurers in the case of life policies) while the purchasers are called insured or assured. Life assurance market is used to denote the means available for the placing of life assurance and annuities (including group life and pensions) and the various 11 insurers who are prepared to accept risk. Thornber, (2011). Life assurance contracts are usually for much longer periods, in most cases five or more years. Life funds are therefore accumulated to long-term liabilities.
The insurance industry is a highly specialized industry that gives greater security to the fortunes of common people and among the whole society. It is one of the financial institutions in Nigeria today that aid economic development and growth. Egeria (2016:5) describes insurance as handmade of commerce which plays a vital role in the going concern of humans as an economic animal. Chikeleze and Echekoba (2008:186), defined insurance as a contract whereby one party, called the insurer, in return for a consideration, called the premium, undertakes to pay the other party, called the insured a sum of money or its equivalent in kind upon the happening of specified event that is contrary to the interest of the insured
It is common to see reports of business failing than business succeeding. Almost always, the failure or success of a business can be attributed to its management. When a business is mismanaged, it will lead to liquidation the company will not meet their solvency margin thereby running away from their obligation as to settle claims which in turn portray ugly insurance image. However, it will also have a drastic effect on the Nigeria economy when it failed. In order to nurture the interaction, this research focus on insurance industries and how they managed life assurance premium, to know if the premium are invested as stipulated by law, how they handle claims and the beneficiaries and also how life assurance fund help in the economic development of Nigeria. Moreover, management of life assurance fund in insurance industry relates primarily to the way the industry managed life assurance premium in order to achieve organizational goals and objectives using available fund efficiently and effectively.
However, in context to management, Selected Insurance firms limited is an associate of union Bank of Nigeria Plc. The company was registered as an insurer on November 18, 1993 and actually commences business in 1998. At the time, it was the first attempt by any bank to venture into universal banking. It therefore became the life assurance specialist’s underwriter with in the same period. Recently, Union assurance is redefining those strong potentials to challenge industry management with the top five brackets. Apart from restructuring its operations, the company is diversifying and expanding at a period where competitors are contracting due to uncertain economic conditions. A new management driving change and excellence is in place and venturing into new frontiers that were uncultivated. The change in management has also brought to bear on the company’s operations, innovations which are impacting positively on the work culture in Union assurance.  Union assurance also has a robust investment portfolio cutting across assets in the equity, money bond and property markets totaling over N5 Billion, they also employs a conservative but dynamic investment strategy geared towards increasing the company’s income and profitability
More so, in managing life assurance funds money is pooled together with that of other investors to create a single strong fund that provide significant investors benefits which includes an instant increase in buying strength, thereby contributing towards economic development in Nigeria. However, life assurance fund are funds accumulated through payment made by the assured person called premium so that should death occur, prior to a specified date or upon survival at an agreed period funds would be made available from the scheme to pay whatever benefits that are due. The idea for assistance and association is not new to the Nigeria society various town and clan unions and social clubs have various ways of showing benevolence to their bereaved. It is customary for people to pay condolence visit and present a sympathy purse. These practices are similar to mutual life assurance.
In addition to this, there are also the long-term needs to create and sustain an enabling environment that will engender safe practice against destructive runs in managing life assurance funds, protecting and ensuring fair play among insures in the industry.
1.2    Statement of Problems
Life insurance companies should mainly be long term in nature. It is evident that investment management, portfolio composition and changes overtime is not only important to the survival of any life assurance scheme but also to the attainment of the corporate mission and vision. The principle of matching of assets and liabilities is practiced better in the life insurance industry than the general insurance sector. The average maturity or duration of the life policies is long, so the assets into which premiums are invested should also be of long maturity. This provides a hedge against reinvestment risk.
Complex set of interrelated problems are identify as follows:
i.    Mismanagement of life assurance premium which lead to liquidation.
ii.    Inability to invest life assurance funds in varieties of security due to lack of experts.
iii.    Ineffective investment management of life assurance fund which affect expectations of the insuring public and the growth of the industry.
1.3    Objectives of the Study
The broad objective of the study is to evaluate the management of life assurance funds and its effect on the development of the Nigerian insurance industry. The specific objectives were:
1.    To examine the effect of life assurance investment in stocks and bones penetration in Nigeria.
2.    To determine the effect of life assurance total assets on premium growth ratio.
3.    To determine the effect of life assurance total assets on total assets on claims ratio.
4.    To investigate the effect of life assurance total assets on insurance density.
1.4    Research Questions
The following research questions were determined from the objective
1.    What are the effect of life assurance investment in stocks and bones penetration in Nigeria?
2.    What is the extent of life assurance total assets on premium growth ratio?
3.    What is the extent of life assurance total assets on total assets on claims ratio?
4.    What is the extent of life assurance total assets on insurance penetration?
1.5    Research Hypothesis
The research work tends to test the following hypothesis listed below:
Hypothesis One
H0:    Life assurance investment have not positive effect on stocks and bones penetration in Nigeria.
H1:    Life assurance investment have positive effect on stocks and bones penetration in Nigeria.
Hypothesis Two
H0:    Life assurance total assets have no positive effect on premium growth ratio.
H1:    Life assurance total assets have positive effect on premium growth ratio.
Hypothesis Three
H0:    Life assurance total assets investment has no significant effect on claims ratio.
H1:    Life assurance total assets investment has significant effect on claims ratio.
Hypothesis Four
H0:    Life assurance total assets has no significant effect on insurance density.
H1:    Life assurance total assets has significant on insurance density.
1.6    Significance of the Study
The study will be of immense significant to the following group of people:
•    Government: The findings of this study will point out to the government the degree of relevance of the life assurance sector morals the development of insurance industry and the economy at large.
•    The general populace: The general public will be enlighten on the activities of life assurance management and its effects towards the development of insurance industry and the Nigeria economy as well.
•    The Research: The study will aid the researcher in obtaining Bachelor of Science (B.Sc.) Degree in Insurance and Risk Management in Enugu State University of Science and Technology (ESUT), Enugu.
•    Students and other Researchers: Students and other researchers will see the information contained in this study for diversification and learning and also does assignment and learning and also to do their own projects.
1.7    Scope of the Study
The study on life assurance fund management and its effect on the development of Nigeria insurance industry covers from 2005 to 2018.
1.8    Limitations of the Study
This research work limit to one of the insurance companies in Enugu, Selected Insurance firms of Nigeria to be precise.
There are a lot of constraints in the gathering of information of this research work but the major constrain are as follows:
a.    Time: in report to the theoretical and practical work the time allowed for project was limited besides there was carried out with other academic assessments.
b.    Finance: Due to high rate of academic fees, I could not be able to carry out research with easy as I was planned.
1.9    Definition of The Terms
i.    Management: this is the act of running and controlling a business or similar organization so as to achieve the organizational goal.
ii.    Insurance: is a contact between two parties insured and insurer whereby the insured pay small amount of money called premium and the insurer promise to compensate the insured when the specified risk insured against occur.
iii.    Life Assurance: is a contract of insurance on party called the insurer agreed that subject to some terms exceptions and conditions that he would pay some money on the death of life assured on the precious maturity of the policy.
iv.    Fund: this is an amount of money that have been saved or made available for a particular purpose.
v.    Premium: is the monetary consideration paid by the insured for insurance cover i.e. the price of services rendered.
vi.    Investment: to put money, effort, time into something to make a profit or get an advantage. It can be buying of property or share in a company as to make profit out of it.
vii.    Mismanagement: to organize or control a business badly
viii.    Liquidation: to cause a business to close, so that its assets can be sold to pay its debts i.e. the process by which a company or part of a company is bought to an end, and the asset and property of a company redistributed. These can also be seen as winding up of a firm by selling off its free (un-pledge) assets to convert them into cash to pay the firm’s unsecured creditors.
ix.    Solvency Margin: this is a minimum excess on an insurance assets over its liabilities set by regulators, it can be regard as similar to capital adequacy. It is also company ability to pay claims.
x.    Policyholder: is a person or a corporation who owns an insurance policy. It also, the owner of an insurance policy; usually, but not always the insured.
xi.    Stakeholder: A  person, group or organization that has interest or concern in an organization i.e. a person, group, organization, member or system who affects or can be affected by an organization actions.
REFERENCES
Chikeleze and Echekoba (2008), Latest insurance news August 1, publish onlinewww.insuranceadvicenigeria.com

Egeria (2016), Determinates of insurance investments in Nigeria a partial Adjustment s union Digest Lagos.

Thornber, (2011).  Determinates of insurance investments in Nigeria a partial Adjustment s union Digest Lagos.