THE ROLE OF INSURANCE COMPANIES IN NIGERIA ECONOMIC DEVELOPMENT. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
ABSTRACT
This project is the role of insurance companies in Nigeria economic development. The insurance industry, from all indication plays a vital role in Nigeria economic development as well as in the problem of risk management in Nigeria. It is very obvious that the majority of the public who are ignorant of the contributions made by the insurance industry have more faith in the banking and other financial institution but these people forget the fact that the banking institution acknowledges the fact that the insurance companies contribute significantly to the development of the economy of the nation.
CHAPTER ONE
INTRODUCTION BACKGROUND OF THE STUDY
Insurance has been defined as an economic device where by risk of people and economic enterprises are transformed from in individual to a group in the process the individual pay’s a fee know as the premium to the group for the assumption of risk in the evidence of the contract of risk assumption, the group issues document known as the insurance policy. To the individual the total of the fee paid to the group by the policy holder constitutions the fund or pools from which losses of individual members of the group are paid the group is known as the insurance while the individual is referred to as the insured.
The insurance industry from all indication plays a vital role in Nigeria economic development as well as in the problem of risk management in Nigeria. It is very obvious that the majority of the public who are ignorant of the contributions made by the insurance industry have more faith in the banking or other financial industries. But these people forget the fact that the banking institution acknowledges the fact that the insurance companies contribute significantly to the development of the economy of the nation. And this is why loans collected from them. The establishment of NDIC to help curb the rate of distress bank is another measure to slow that the role of insurance is very vital to economic development. The government had since, also seen the important of the insurance institution in risk management and development.