THE IMPACT OF INSURANCE COMPANIES IN THE DEVELOPMENT OF AN ECONOMY
ABSTRACT
          The research work conducted in the project topic title “The Impact of insurance Companies in Economic Development of an Economy”, has achieved the objectives of carrying out the study, which are:-
To establish the impact of the insurance companies have made and likely to make in future, the growth and stability of the nations economy and also areas where the insurance industry has failed in its noble objectives and make recommendation for improvements for better services of the industry.
          It has looked into the impact of insurance service to developing economy of Nigeria .  And also the contributions of insurance services to the buyer of insurance products or its benefits to the purchases of these produce such as life assurance product motor insurance, Fire insurance, Marine, accretion.  Insurance plays a significant role in gross domestic products through its financing of investment in Nigerian Companies.
          The project writing was implemented using both primary and secondary sources.  The primary consisted the Questionnaire prepared and distributed to the insuring public. Oral interviews and personal observation (Field Surveys) were also use during the research work.
          While, secondary data was based on review of some related books, Journals and newspapers.
          Response from the questionnaires collected was analyzed using random sampling techniques and frequency tables.
          Finding was emerged based on the analysis ands recombination was provided.
Finally, at the end of the research work, I was able to active the aim of knowing the impact of insurance Companies in economic development.
PROPOSAL
          Insurance is a complex Subject that  involves the people who are willing and able to have the service.
          The objectives of this research work is to establish the impact the insurance Companies has made and likely to make in future, the growth and stability of the nations economy and also areas where the insurance industry has failed in its noble objective and make recommendation for improvement of better services of the industry.
          It will also look into the impact of insurance Service to developing economy of Nigeria.    The Research will also look into the contributions of Insurance services to the buyer of insurance products or its benefits to the purchase of these product such as life Assurance product, motor insurance, fire insurance, Marine, Acration.
Insurance plays a significant role in gross domestic product through its financing of investment in Nigerian Companies.
The project will rely on both primary and Secondary Sources.  The primary data will consists of prepared closed ended questionnaires to be distributed to insuring public.
It will also make use of oral interviews and personal Observation.  (Field Surveys).
          While secondary data will be based on review of some related books, Journals and news papers.  Response from the questionnaires collected be analyzed using random sampling techniques and frequency tables.
TABLE OF CONTENTS
CHAPTER ONE
1.0     INTRODUCTION   
1.1     Background                   
1.2     Research Objective    
1.3     Statement of the Problems   
1.4     Significance of the study  
1.5     Statement of Hypothesis  
1.6     Scope of the Study         
1.7     Definition of Terms        
          Reference.  
CHAPTER TWO
2.0        LITERATURE REVIEW
2.1     Impact of insurance Company in economic development
2.2     Positive Impact     
2.3     Negative Impact    
2.4     Various risk insurance Cover
2.5     Factors that cause an economy to develop   
2.6        Conclusion
Reference.
 CHAPTER THREE
3.0     RESEARCH DESIGN AND METHODOLOGY
3.1     Sources of data   
3.1.1Primary data
3.1.2 Secondary data     
3.2     Sample used         
3.3     Method of investigation  
Reference.
CHAPTER FOUR
4.0     DATA PRESENTATION AND ANALYSIS
4.1        Introduction         
4.2        Data Presentation
4.3        Analysis of Data   
4.4        Test of Hypothesis
4.5        Interpretation of results  
CHAPTER FIVE
5.0        SUMMARY OF FINDINGS
5.1     Discussion Of Findings
5.2     Conclusion
5.3     Recommendations  
          Appendix
          Questionnaire.
CHAPTER ONE
1.0       INTRODUCTION
The theme of this project is “The Impact of Insurance Companies on the economic development of an economy”
(A Case Study of Nicon Insurance Plc Enugu).  It is my intention to examine the following:
(a)      Brief history or historical aspect of insurance
(b)     Meaning of Insurance
(c)      Functions
(A)            HISTORICAL ASPECT OF INSURANCE
Modern Commercial Insurance was introduced into Nigerian in the first quartet of the 20th – Century by early British Merchants who established trading posts on the West Coast of Africa.  Until 1921 when the Royal exchange Assurance Company Limited opened its Office in Lagos.  The business  of insurance was hither to conducted on Skeletal agency arrangement.
But today, it has increased to many Companies in Nigerian.
(B)     MEANING OF INSURANCE
Insurance could be defined as one of the social sciences designed mostly tasking risk and risk taking involves uncertainty of loss (OKWOR, 1985).    Therefore Insurance Company is a Service Company on which the activities of other business enterprise depend for security and protection.
(C)     FUNCTIONS OF INSURANCE
          Many writers have mentioned some of the functions of insurance which  the researcher will not hesitate to mention by listened to all these functions.
i.             Insurance guarantees to persons that their individual financial losses will be fairly and equitably distributed over the insured Community or group as a whole.
ii.           By offering financial Security to business and enterprises, by offering money to finance the replacement of loss and damage.
iii.          Insurance Industry serve as an effective vehicle for the mobilization of natural resources for the mobilization of natural resources for the national development efforts.
iv.          Insurance Industry is an important employer of Labour thus provided Joint opportunities for the teeming population  of this country and helping to solve the unemployment problems.
Therefore with the regards to the economy of which is in a state of depression, Insurance functions could be linked as a tool for looking into this depression since the industry  is also in Line with the financial activities of the country.
Insurance Companies provide the service of Financial sustenance to other participants in the economy.   They do this by ensuring the financial survival other business in the event of the  unfortunate occurrence of insurable risks.  Without such financial compensation as offered by the insurance industry, many a business would have been out of existence, with all the attendant economic waste.
The economic development of any nation is closely related tot he behaviour of individuals living in that country as regards how much to save and how much to consume from their earned income.
From the national accounting point of view savings equals investment.  It is also true that for a country where the inhabitants make a consistent effort to save a part of their disposable personal income, such a country will be economically viable that is ignoring the uncontrollable variables such as political instability and depression.
Savings are worthwhile to the extent that they are sensibly and Judiciously employed in the various development projects with the economy thus contributing to the gross domestic product which determines the standard of living in a particular country.  It is for this reason that the government encourages people to save through government  approved  institutions including the insurance companies.  There are advantages to be derived from creating in the individual, a sense of thrift by saving money through easy monthly installments and the collection into a pool, the otherwise inevitable individual contributions which provide a  regular source of investment loan in the economy.
1.1    STATEMENT OF PROBLEM
Inspite of its enormous contributions to the economic development of Nigeria, the insurance Company remains grossly misunderstood.
A good inquiry into the genesis of the problem in insurance Company will reveal that the problems is traceable to three institutions namely:- The Insurance industry, the media and the public.
It is in good order to start by considering how the insurance Company has contributed tot he problem.  Basically, the strongest negative influence on the insurance companies in Nigeria the literacy level of the public and the inability of the insurers to communicate with them.  Out of over 180 registered companies in Nigerian, only a very few have officers or units engaged in Public relations.
The ordinary citizen is yet to clearly understand the principles citizen is yet to clearly understand the principles and practice of insurance while the  so called elite in he society are ignorant of ways in which insurance companies operate.
How has the media contributed tot he problem if insurance Companies being misunderstood ?.
There are about 86 dailies and week lies as well as 38 magazines in this country, yet on insurance.  On a closer examination, one finds out that most of the reports published by the sampled newspapers were mainly routine and uniformed in that they lacked depth.
Industry through numour mongering.  The members of the public have spread so much general suspicion and distrust about the industry that everything about insurance in this country now appear to be son uninteresting and far form being genuine. Because they are not clear about the principles and practice of insurance, their minds are all ready made up as to what insurance is all about.  They have become so based that and Nigerian even though Ignorant of the main gains of insurance would not want to talk about it as a subject more so buying it.  There is or curse, the issue of delay in the settlement of claim which has in its own way painted the insurance industry black.
1.2       PURPOSE OF STUDY
Insurance has  indeed contributed to the economic development of Nigeria inspite of all the strong negative influences attached to its continued existence.
The following are the purpose of the study.
-           it is already a know fact that the insurance companies plays a vital role in the economy of Nigeria, this work is set out to established how much contribution.  The industry has made and in what area.
-           This work will also determine the effect contributions of the insurance companies on the economy of Nigeria.
-           To make recommendation based on findings.
1.3    SIGNIFICANCE  OF THE STUDY
          This study will be of utmost importance to Nigeria populace in that it will contributed to their under standing of the principles and practice of insurance and the need for it. It will also help in clearing the mountain of bias which is already filed up in the minds of the public about insurance.
          This research work highlights the glaring problem affecting the operation of the insurance industry in Nigeria and also goes further to explain he problem and how it can be solved.
Through the help of these identified problems, the insurance company would be able to come up and therefore know the possible areas of improvement in order to bring a lasting solution the problem of bad image of the industry before the public.
          The timing of this research work is very appropriate particularly as the decade is gradually coming to an end when Nigeria and other nations of the world anticipates there will be everything for all including insurance.
The relevance of this study this time it therefore indispensable.
1.4    STATEMENT OF HYPOTHESIS
          In order to progress in this research work, the following hypothesis were formulated:
1.      Whether the Insurance literacy level of the pubic affects their desire and demand for insurance products and service.
2.      Whether the insurance companies has been playing an appreciable role in the economic development of  Nigeria
3.      Whether the Insurance accepted level is Nigeria is low
4.      Whether the insurance professionals are doing their best in Nigeria economy.
1.5       SCOPE OF THE STUDY
          The scope of this research work covers the role of the Insurance Companies in the economic development of Nigeria.
The topic of this work is a very interesting area of study ands Nicon Insurance Plc Enugu is used as a case study.
A lot of problems were encountered by the researcher which militated against the progress of the work.  Some of the problems include:-
i.             Lack of adequate materials dealing in an up to date findings. The created a lot of problems as the researcher needs the most recent materials to work with.
ii.           Most insurance companies are not quoted in the stock exchange market and they are not willing to make available their animal reports to the strangers.
iii.          At a points it took only the grace and the miracle working power of God for the finding of this research work to be possible.
1.6       DEFINITION OF TERMS:
1. Insurance interest   this is the legal right to insure.
2. Re-Insurance          This is any class of insurance to be
    treated as insurance business of the class t which such
    business would have belong if it had been under written    
    by the reinsurer.
3. Insurance Brokers     This is a proffessional insurance
    practitioner who works independently to link individuals
    and companies who need insurance with insurers best
    qualified to meet insurance the insurance needs of those
    individuals or companies.    
4.   Moral Hazard    This is the right of a person who has indemnified another under a Legal Obligation to stand in the place of the other person and avail himself of all the rights and remedies available tot heat other person whether already  enforced or not.     
5. Premiums      This is the monetary  consideration
     passing form the insured tot he insurer for their
     undertaking to pay the sum  insured in the event of the
     risk insured against happening.