THE IMPACT OF THE PRUDENTIAL GUIDELINES IN THE INSURANCE INDUSTRY
 PROPOSAL
         What I intend to achieve as the researcher of this project topic the prudential guidelines on insurance companies will hold for the industry in the nearest future.
        This is to centered on the impact the issued of guidelines by the various regulatory bodies like the insurance Decree of 1996 and 1991 and the establishment of various bodies like the Nigerian insurance stock brokers and others.
        I also want to achieve the performance apprisal of the insurance companies with view of improving revenue profits, identifying the problems faced as a result of this prudential guidelines issued.
  In an effort to access the impacts of the implementation of the prudential guidelines one must first and for most achieve why the guidelines were issued and what they were intended to achieve.
        Hence the need to findings lasting solutions to sanities the insurance industry to bring about a more better future for its existence.
        Chapter one
        Vividly speaking this will base on Introduction, Background of study, statement of problems, objectives of study, significance of the study, scope limitation and delimitation and lastly Definition of terms.
        Chapter two
        This particularly involve the Review of related literature, objectives of insurance regulation, insurance Decree of 1976 and insurance Decree No 58 of 1991.
         Chapter Three
        Under this chapter we have Research designed and methodology, Data source, Data type, Data location and method of investigation applied.
         Chapter Four
        This will basically base on presentation and analysis of data, General review of Nigerian insurance market and claims.
        Chapter Five
        This will contained the following findings, recommendation and conclusion.              
 ABSTRACT
          This project work is aimed at giving an insight of what the prudential guidelines on insurance companies hold for the industry in the nearest future.
        It is centered on the impact of issued guideline by the various regulatory bodies like the insurance.  Decree of 1976 and 1991 and the establishment of the various bodies like the NISB and others.
        It also examine the performance apprisal of the insurance companies with a view of improving revenue profits, identifying the problems faced as a result of this prudential guidelines issued.
        Hence the need to finding lasting solution to sanitize the insurance industry to bring about a more better future for its existence.
 TABLE OF CONTENT
CHAPTER ONE
1.0        Introduction                                        
1.1    Background of study                            
1.2        Statement of problems                         
1.3        Objective of study                               
1.4        Significance of the study                       
1.5        Scope limitation and delimitation            
1.6        Research  Hypothesis                   
1.7        Definition of terms                       
 CHAPTER TWO
2.0        Review of Related Literature                 
2.1    Objectives of insurance regulations                
2.2        Insurance Decree of 1976                             
2.3        Insurance Decree No 58 of 1991                    
2.4        Insurance Association                                   
2.5        Brief History of Insurable interest                   
2.6        Claims settlement                                
CHAPTER THREE
3.0        Research Design And Methodology                 
3.1    Data source                                        
CHAPTER FOUR
4.0        Presentation and analysis of data           
4.1    Introduction                                        
4.2        Presentation of Question                                       
4.3        Analysis of Data                                  
CHAPTER FIVE
5.O   Summary of Findings                           
5.1        Decision of Findings                     
5.2        Conclusion                                  
5.3        Recommendation                                
 Bibliography/References                       
 CHAPTER ONE
1.0    INTRODUCTION
          Insurance companies deal principally money and property.
        According to Brettl. J. the subject matter of insurance is money and money only.  They act as mobilizers of funds from surplus units and channel them to deficit units.
        This channeling can be refered to as indemnity.
        This can be put in another way, that the primary purpose traditionally of insurance to spread the financial losses of insured members over the whole of the insuring uncertainty by compensating the unfortunate few from the contributions of all members.
        Premium changed by the insurance company is its primary sources of manning income, therefore the insurance companies help on premium for its insured or person, financial rights or liability to mention but a few.
        However, the financial compensation promised by the insurer is what is called the subject matter of the contract.
        Insurance contract is subject to the general Principles of Nigerian Law of Contract as in any other commercial activity.  It these principles that makes for its validity.  Not only does it affect insurance but it operates in every other commercial aspect of life.
 1.1    BACKGROUND OF STUDY
        The role of insurance as one of the major economic activities of a nation has long received would acclamation.  It is not a dispute that insurance has attained a high degree of commercial sophistication.
        Insurance business plays a major role in shaping the economic furtunes of the business enterprise institutions and individuals.
        The economic profits of any country usually has an impact on both cost and benefits of insurance.  Thus one should consider the examination of the subject of insurance regulation timely in view of current economic climate.      
 1.2    STATEMENT OF PROBLEMS
        It has been a concern within the insurance industry on the introduction of the prudential guidelines, as it affects the performance appraisal of the insurance companies.
        This research work is geared towards investigating the impact of this guideline as it affects the insurance industry in Nigerian.
        In 1979 there was an act guiding the operations of insurance and ie- insurance business in Nigeria.
        This act stipulated that minimum of 25 percent of the total assets of the insurance companies should be held by government and semi-government securities.
        Non life insurance companies should invest not less than 10 percent of their total assets in real estate,  while the minimum proportion for life insurance companies was fixed at 25 percent.
        However, in recognition of the financial intimidation role of insurance companies by government the lending operation of the companies were brought under the control of the C.B.N with effect from April 1978.  From then an insurance companies required to render monthly returns of their operation to the bank within 30 days from the end of each month.
 1.3    OBJECTIVES OF STUDY
a.           To ascertain the impact of the prudential guidelines on insurance companies.
b.           To examine the facts contained in the prudential guidelines issues.
c.           To examine the performance of insurance companies with regards to premium income and profit since the introduction of the prudential guidelines.
d.           To identify the problems insurance companies face as a result of the introduction of prudential guidelines.
e.           To know whether insurance companies now send monthly report to regulatory bodies.
f.            Recommendations on the researcher’s findings.
 1.4    SI9GNIFICANCE OF THE STUDY
a.           INSURANCE COMPANIES
This licensed companies will, through this research, work improve on their performance since the researcher will let the public know all that is required of the insurance companies as contained in the prudential guidelines issued on licensed insurance companies.
 b.     THE GOVERNMENT
        Since the government though it regulatory bodies like NISB, C.B.N, etc issued the prudential guidelines this research will help the government know whether to let the prudential guideline continue or to withdraw it from being used by insurance companies.
 C      THE PUBLIC
        The public here includes, the “insured” and the intending ones.  This research work will help particularly the intending policy buyers to be aware of the new insurance policy on the insured.
 1.5        SCOPE LIMITATION AND DELIMITATION                  
SCOPE
        This research work covers the facts of the guidelines, premium income and profits position of insurance companies before and after the prudential guidelines, how the insurance companies welcome this new guidelines the impact the guidelines have made so far and the problems facing insurance companies as a result of the guidelines.
 LIMITATION
        In Nigeria researchers are most of the time, regarded as tax collectors  and they face many problems in the society.  The researcher are not exempted and so, had a share of problems.
i.      Finance and Time wasted   
        The research had to call on C.B.N, NDIC and some insurance companies within Enugu before obtaining the required information.  
        There was a huge transportation cost because of the researcher’s regular visits to the insurance companies and NDIC and much time was wasted which could have been employed in accomplishing some other things.
ii.      Secrecy and lack of Statistics
        To obtain the required information from the CBN, NDIC and others insurance companies was difficult because every information they considered confidential and so not information needed by the researcher was made available to him.
DELIMITATION
        Due to the above limitation, the researcher purposely did not write out names of distressed insurance companies as a result of guidelines issued and detailed of their transactions.
1.6    RESEARCH HYPOTHESIS
1.6.1         H0    The prudential guidelines has not made any impact on licensed insurance companies. Since its introduction.
HI     The prudential guidelines has made some impacts on licensed insurance companies since its introduction.   
 1.6.2         H0    The insurance companies indemnity and premiums positions have not changed in spite of the introduction of the prudential guidelines.
                 HI     The insurance companies indemnity and premiums positions have introduction op the prudential guidelines.
1.6.3         H0    Insurance companies do not send monthly reports to CBN, NDIC since the prudential guidelines was issued under compulsion.
                HI:    It has become a law that insurance companies disclose all about them to CBN, NDIC monthly as a result of introduction of prudential guidelines issued.
1.6.4         H0:   Insurance companies are not having problems as a result of the prudential guidelines issued to them.
                HI:    Insurance companies are experiencing problems which is do to the result of the prudential guidelines issued to them.