THE EFFECT OF CLAIM SETTLEMENT ON PROFIT MAXIMIZATION IN THE INSURANCE INDUSTRIES. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
This project work has critically highlighted the compact of claims settlements on profit maximization in insurance industry, the problems affecting effective claims settlement in Nigeria have been identified and how they can be controlled is also included in the study.
Also circumstances given rise to claims, fraudulent claims and effect of inflation on claims settlement have been discussed and ways to solve them are inductive in the study.
This study also examines the lapses and recommends some viable point (s) that can also contribute to the image of the industry.
In conclusion, for effective claims settlement to arise, the insurer and the insured must agree as to the actual amount to be paid in the event of claims taking into consideration the principles and the risk guiding the handling of insurance claims.
PURPOSE /OBJECTIVE OF THE STUDY
1. To find out effect of unsettled claims on profit maximization in the insurance industry
2. To find out weather creation of disputes on insurance contracts is one of the claim settlements on profit maximization.
3. To find out weather claim settlement involving policy holder on default has any effect on profitability in insurance industry.
4. To find out the effect of claims concerning third party insurance and profit maximization.
5. To find out the effect of prompt settlement on claims on profit maximization in insurance industry.
And that is why the research has decided to come up with the following questions.
1. What is the effect of unsettled claim on profit maximization in insurance industry?
2. What is the cause of disputes among the insurer and the insured on claim settlement in insurance industry?
3. What is the effect of claim settlement on profit maximization on the side of policyholders in case of default and on the uneducated public?
4. What is the effect of claim concerning third party insurance and profit maximization?
What is the effect of prompt settlement claims on profit maximization in insurance industry?
1.1 BACKGROUND OF THE STUDY
I can remember a definition which I was forced to cram in my first year by Mrs. Helen Ibeabuchi she defined insurance as an economic path towards unlimited opportunities for financial growth and fulfillment in life through protection and security. Winston Churchill once referred to insurance as “ bringing the magic of averages to the rescue of million”. This magic is the outcome of voluntary economic co-operation by human beings. Before this was the working out of the law of average which tells the probability or chance that an event will or will not happen.