ABSTRACT

This project work titled ‘’the management of insurance company
towards the development of business enterprises’’ a case Study of Royal
exchange assurance Nig. Plc. Kano. This research work intends to survey
the role and the concept of insurance companies in business and in the
sustainability of business enterprises in Nigeria. The researcher
adopted a descriptive method of survey; the sample method use was
sampling method. Both primary and secondary sources of data were used to
obtain relevant information. The company has a total population of 100
employees’. The sample size was 50 which is draw from the total
population using Yaro Yamani formula.In my findings, it claims for those
loss will be guaranteed. It is recommended that the insurance managers
should do everything possible to train their staff on job and on
insurance training. It is drawn to the phase of the insurance industries
with a view of determining adaptability and sustainability, taking into
consideration the peculiarity of Nigeria circumstance. Take into
consideration, the recapitalization exercise in the companies rather
than financial effects and also to proffer solutions to problems hiking
around the insurance companies.

CHAPTER ONE
INTRODUCTION

Life is full of risk and every human being is confronted with
possibility that one day one of these hazards which form part of life
may befall them because one financial loss or the other. The purpose of
insurance is to indemnify the victims for the financial loss they might
have suffered as a result of these risks. Risk is a concept that denotes
a potential negative impact to an asset or some characteristic of value
that may arise from some present process or future event. In everyday
usage, “risk” is often used synonymously with the probability of a known
loss. Paradoxically, a probable loss can be uncertain and relative in
an individual event while having a certainty in the aggregate of
multiple events (see risk vs. uncertainty below). Risk is the
possibility of an event occurring that will have an impact on the
achievement of objectives. Risk is measured in terms of impact and
likelihood.
Insurance was not set out to climate and cannot soften the blow in a
purely financial sense of obtaining monetary compensation to the victims
thereby placing them in a financial position.
The purchasing of an insurance has been earlier describe as the insured
person as a policy holder in order to protect himself against a
particular risk, take out a policy with an insured, thereby passing over
the risks to the insured on a payment of a fee known as premium.
Life is associated with different kind of risk some of this risk are
insurable while some are not. The insurance industry in each devices
different type of insurance policy to carter for each one to the
insurance risk. The more conventual‟s, one being marine, fire, life,
aviation, motor, person, accident and a lot of others.
1.1 BACK GROUND OF THE STUDY
Insurance as an industry did not exist in Nigeria until the later part
of the twentieth century. However, there existed in Nigerian
communities, some form of organize mutual social insurance schemes which
had the future of modern insurance.
Apart from the early social insurance scheme, insurance as an industry
is relatively new in Nigeria. The first operation branch of an insurance
company was open in Nigeria in Lagos in 1921 by the Royal exchange
assurance Plc. and it remain the only insurance company in Nigeria until
1949 when three British owned insurance companies were opened up.
As at the time Nigeria got her independent operating insurance as risen
to twenty five and were mainly foreign owned. The insurance degree was
prorogated to regulate the way previous legislation did not do.
The insurance company In Nigeria and the insurance industry are control
by the federal ministry of finance another offices of director of
insurance. The insurance departments of these ministries are responsible
for the control activities of insurance companies so as to ensure
compliance electrets of 1976 and other relevant regulation related to
the business of insurance in Nigeria.
Royal Exchange assurance Plc. engage themselves in the following types
of risk, they are;- loss of profit following the insurance personal
inability, trained insurance, private can insure motor cycle group,
house holders comprehensive insurance and all kind of risk.
Royal Exchange Insurance Nig. Plc. as many branches within Nigeria with
the head office in Lagos and the incorporation number 6572 and the
degree number that symbols Royal Exchange insurance his degree 58 of
1920.
1.2 STATEMENT OF THE PROBLEM
Owing to the negative factions surrounding the insurance industry in
Nigeria, the activities of the industry have been subjected to various
criticisms of those negative factions. We can identify good number of
problems. Therefore, the statement of this problem of this study could
be obtained based on the observation and critical analysis of the
industry. Non payments of claims in the industry have become a faction
that negatives the performance of the industry. Despite the factor,
insurance company collect premium from their clients.
Another is the issue of inadequate capital and investment to put the
company in a more favorable condition to meet their demand of their
clients.
Often business organization in the country that rely on the insurance
companies realize they are in the case were they incurred losses which
have been insured barely affect the business.
1.3 OBJECTIVE OF THE STUDY
As a general rule, there are hardly any differences between the aims and
objectives of the insurance in Africa from those of similar ones
operating elsewhere in the world. A brief examination of the aims of a
typical insurance emphasizing those features that would be OD special
interest to the prop actors and managers of insurance company in
Africa will be useful. The objective of an insurance company may be summarized as follows;-
1. To sell insurance cover to insurance consumers.
2. To settle all genuine claim family land promptly in accordance with law and be formed relevant insurance policy.
3. To run business or organization in such a way that it produce a fair
to the shareholders who funded that capital with which the business was
established.
In moving forward these basic objectives, the prop actor and managers of
the insurance company have certain responsibility to different group
and making their decision they must bear in mind and protect the
interest of each group, these groups are;-
i. The policy holders.
ii. The shareholders.
iii. The workers and staffs.
iv. The Nation and the society.
1.4 SIGNIFICANCE OF THE STUDY
Insurance companies form a part of the very fabric of the economy and
are indispensable to it in the modern state. They are vitally necessary
because they are one of the most important vehicles for development and
because of the security they give to entrepreneur, that policy holder
and shareholders.
The availability of insurance maximizes the entrepreneur‟s uncertainty
to the extent that some of the risks with which he is faced with can be
translated, for a fix amount called the „‟premium‟‟. He is to fully
commit his assets to the operation of his business. This enables them to
acquire the necessary confidence and tranquility of mind that are
requisites to fruitful risk looking.
1.5 SCOPE OF THE STUDY
The researcher‟s work would have been wide in nature; however, it has
restricted itself to insurance company. Thus the study will focus and
concentrate strictly on the role of insurance company towards the
development of business enterprises. Insurance provide a means for
industrial and societies to cope with some of the risks faced in
everyday life. Earning capacity is asses that should be protected
through insurance.
1.6 LIMITATIONS TO THE STUDY
A research of this nature is found to have a lot of limitations. Time
factor was a serious problem encountered; the period given for the
completion of this research work was share along with academic,
non-academic work which was necessary in relation with a completion of
school in general. The time spread to include the distribution and
gathering of questionnaire from respondents which was a problem of its
own entirely.
Financial constraints can never be rule out in a situation like this,
the money required for the running around, cost of materials etc.
Another limitation is that of material for the secondary data. Even
though there are many existing text books and journals of insurance
nature which would have been used for this research work. Getting them
in the library wasn‟t easy as many students are equally writing on
similar topics which require the same materials.
1.7 STATEMENT OF HYPOTHESIS
In every study, there is an assumption on the variable of that study.
This assumption tends to predict the outcome of the study. The
hypothesis of this study is to asset the following;-
HI: Insurance firms play a vital role in the development of nation economy.
HO: Insurance firms don‟t play a meaningful role in the development of nation‟s economy.
1.8 DEFINITION OF KEY TERMS
OD: Organizational Development

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