THE IMPACT OF GLOBALIZATION OF FINANCIAL SERVICE ON THE DEVELOPMENT OF NIGERIAN INSURANCE INDUSTRY. A RESEARCH PROJECT TOPICS ON INSURANCE
The study sought to investigate the impact if globalization of financial services on the development of Nigerian Insurance industry (A study of IGI). Globalization refers to the process of the intensification of economic, political, social and cultural relations across boundaries, and it is principally aimed at the homogenization of political and socioeconomic across boundaries. Industrial general insurance company Enugu was used as a case study. The objective of the research were to ascertain why Nigeria insurance industry has not been participating in the international insurance market, and to identify the needs facilities to be used to enhances globalization in Nigeria. The methodology used in obtaining data was a structural questionnaire and its validity of hypothesis was tested using the chi-square statistical model. Data were sourced both through primary and secondary data collection. Approximating scaling statistical model was used in the analysis of response from the respondents. It was discovered from the research work that a lot of problems are facing globalization of financial service on the development of Nigerian insurance Industry in Enugu and recommends that government should help to provide due facilities that will enhance Nigeria Insurance Industry in participating in the international Insurance market.
1.1 BACKGROUND OF THE STUDY
Globalization means the whole world is becoming a global village, the world are coming together to be one in unity, things are happening generally people don’t produce to satisfy the market people around them, but they produce for the whole market. What is happening at Saudi Arabia, America, Europe etc. is happening in Nigeria, Ghana and parts of the whole world it is globalization. Globalization is a new world order that emphasis global perspective of the whole universe in further words that word market is tended towards a universal standard.
The world economy has undergone radical change during the past two decades, geographical and cultural distance have shrunk with advent of jet planes, fax machines, global computer and telephone, look ups, world television satellite, broad casts and other technical advances. This has allowed companies to greatly expand their geographical market coverage purchasing and manufacturing the result is a vastly more complex insurance environment for both companies and customers. Today almost every company, large or small is touched in some way by global competition. From the neighbourhood florist that buys its flower from Mexican. Nurseries, to the small New-York clothing retailer that source its merchandized competing in its home markets with giant Japanese rivals to the large American Consumer gods producer introduce new products into emerging markets abroad.
Companies in various industries are also developing using a global assembly line. In addition is sourcing their components supplier and goods from abroad, many U.S companies are trying to sell their service abroad. But they are recognizing that to do this well they cannot do it along so they are forming strategic alliances with competitors who serve as suppliers or distributors, technological partners or joint ventures partners all of this means that we are seeing and will continue to see some surprising alliances between international competitors e,g ford and Nissan successfully designed a mini-van together and ford has also had a successful strategic alliance with mazde for the past 20 years.
General electric and SNECMA a French company have been making jet engines together, since 1971 Coca-cola and Schweppes run a large soft drink during bottling plant together that has brought both companies, tremendous cost saving. Toshiba supplier line transmitter to JVC Television.