Abstract
This
project is on comparative analysis of amount of premium paid and claims settled
on fire, motor and life policies in Kwara Insurance Broker’s Limited, Ilorin
from 1996-2005 was aimed to analysis the trend of insurance in Nigeria as
regards to the three policies mentioned above regression analysis and
correlation was use to analyse the data. Sequences to the analysis carried out,
it revealed that the amount of claims settled does not depend on the amount of
premium paid. The life policy which shows that no awareness is being created to
prevail its importance. It can be seen from the three policies that there are
fluctuations in premium paid. Premium paid has fluctuated over the years in the
motor polic. Eventually, the analysis revealed that the amount of premium paid
and claims settled on each of the policies are not equal, therefore the premiums
paid have highest values. Based on these findings, we recommend to the company
that it should encourage its staff to embark on public enlightenment from time
to time and there is need to employ the services of qualified statisticians for
the planning and predication towards their business, so that the organization
will not collapse.
TABLE
OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgments iv
Abstract vi
Table of Contents vii
CHAPTER ONE
1.0 Introduction 1
1.1 Historical
Background 3
1.2 Aims
and Objectives of the Study 5
1.3 Definition
of Terms 5
1.4 Limitations
of the Study 7
CHAPTER TWO
2.0 Literature
Review 8
2.1 Definition
of Insurance 9
CHAPTER THREE
3.0 Methodology 13
3.1 Correlation
Analysis 13
3.2 Regression
Analysis 14
3.3 Analysis
of Variance 21
3.4 Data
Presentation 23
3.5 Source
of Data collection 24
CHAPTER FOUR
4.0 Analysis
of Data 28
4.1 Presentation
of Data 28
CHAPTER FIVE
5.0 Summary,
Conclusion and Recommendations 48
5.1 Summary 48
5.2 Conclusion
49
5.3 Recommendations 49
References 52
CHAPTER ONE
1.0 INTRODUCTION
We can define insurance in two
major contexts as an economic or social institution designed to perform certain
function and as a legal contact between two parties. It can also be defined as
a pool of risk whereby the unfortunate ones are being compensated. There
unfortunate few who funds themselves victims of loss of properties or accident.
It is not only for the private
ones but also for the commercial and industrial concern. It is carried out all
over the word.
The practice, organization and
management of insurance in modern items came with the advert of the
colonialist. The majority of these companies were of British origin. British
insurance companies soon appointed agents to cater for their business in
Nigerian. Such agents consisted of bank and traders but later, Nigeria Trader
and merchants were given power to secure insurance business, issue cover note
and give helping hands in claims settlement.
There are a lot of insurance
companies registered in Nigeria
of which Kwara insurance brokers limited Ilorin
owned by Kwara State Government is one.
Insurance companies are of
different kinds. There are some specialists in one or more classes of insurance
such as life, fire, marine and so on. In this work, we are going to limit ourselves
to the fire, motor and life policies.
To compare the three arms of
insurance policies on the amount of premium paid and claims settled on fire.
The fire policy is the first type of insurance policy developed and has played
a significant role in insurance for many years. It is declining as more
contracts are being re-written but the provision contains in the fire policy
are still important.
No matter careful someone may
be to prevent fire a certain number of losses with occurred. While,
theoretically, most fire losses are preventable so claims and premium amount
are collected from the people insure themselves on fire before hand. There was
little demand for fire insurance in its early day. This was categorized under
non-life business.
Life policy is usually issued
on a level of premium basis, which means, that the same premium is charged
throughout the duration of the contract.
It was once a starting
innovation since it was reasoned that due to that rising so that if the issued
dies before the higher demand for the insurance complete it.
Motor policy has the higher
demand for the insurance policies and it also played significant role in
insurance for many years.
1.1 HISTORICAL BACKGROUND
The Kwara Insurance Brokers
Limited was incorporated as foundation insurance company to transact life
assurance business in 1989. On May
20th 1999, after the
acquisition and restructuring in ownership and management, the name was changed
to Standard Life Assurance Company Limited. It commenced full operation in
January 200. Standard assurance life has successfully complied with the
National Insurance Commission insurance consolidation/ recapitalization
policies as at February 28,
2007.
Being a specialist company in
life, motor, fire insurance products, it focuses its business on savings and
investment, linked life, motor fire assurance as well as group life and annuity
policies. Its core values and qualities centre on product innovation and
excellent customer services.
Brokers is a member company of
standard Alliance groups, a high profile and technology driven financial
services group in Nigeria having interest in Banking, person, funds management,
stock brokering, manufacturing and information technology. The company is a
subsidiary of brokers limited insurance whose shareholding structure is varied
and diverse with few corporate bodies including Fin-bank holding above 20% of
the issued share capital of the company.
BOARD
OF DIRECTORS
OLORODUN O’TEGA EMERHOR, CON; CHAIRMAN
ALH. MOHAMMED A. HASSAN (CIROMAN KEFFI): MEMBER
DR. RAMSEY O. MONOE, CON MEMBER
MRS. OMOLOLA OSHIAFI MEMBER
CHIEF EDE
OSAYANDE MEMBER
MR. BODE ADEDEJI MEMBER
MR. AUSTIN ENAJEMO-ISIRE (MANAGER)
1.2 AIMS AND OBJECTIVES OF THE STUDY
The aim of this study is to
examine critically the type of relationship that might exist between the amount
of premium paid and claimes settled in life, fire and motor policy. To fit the
trend line of premium paid and claims, settled within the period of the study
and to forecast based on the trend the future value of premium that will be
paid and will be settled.
1.3 DEFINITION OF TERMS
INSURANCE: A system for providing financial
compensation for the effect of misfortune
INSURANCE POLICY: The document settling out the
exact terms on which an insurance cover has been provided. The policy is the
evidence of contract but does not in general constitute a contract.
PREMIUM: A payment usually made annually or
quarterly to an insurance company for insurance policy.
INSTALLMENT: is the money pay on the insurance
for the insurance policy over a period of time.
SAMPLE: One of more units selected from a
population according to some specified procedure are said to constitute a
sample. Thus a sample is a part or fraction of the population.
CLAIMS: A demand for payment compensation for
injury or damages under law or contract is the demand for the payment of loss
under a insurance contract the estimated amount to be paid or the amount
actually paid.
LAPSE: This is the term used to described the
out dated policy taken
POLICY: This is for agreed period specified by
the company (insurer) for customers (Assured) if this period or term expires
that policy lapse.
1.4 LIMITATIONS OF THE STUDY
Initially, it was not easy to
get access to the source of data because of lack of immediate response from the
junior staff of Kwara Insurance. It was much later that the controller gave
instruction for the release of the files cash books journals, where all the
data where extracted and complied.
Nevertheless, it would be very
much appreciated of these data still existing in their original forms in the
files, cash books and journals of Kwara Insurance brokers limited are published
and bound in a form of book so that future researchers will not have much
problem in gaining to be sources of data.
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