MARKETING OF LIFE ASSURANCE POLICIES IN NIGERIA. A RESEARCH PROJECT TOPICS ON INSURANCE
In Nigeria the issue of taking life assurance policy has been neglected in the sense that at this presence time, it is estimated that not up to two percent (2%) of Nigerians own life assurance policies due to poor education and inappropriate marketing strategies for this fact, the benefits and role life assurance plays in this country is being viewed from a very crooked point thereby making it slightly visible.This study therefore focuses on marketing of life assurance policies in Nigeria. The population of the study comprises both staff and customers of Leadway Assurance Plc Enugu. A sample size of fifty (50) was selected made up of 20 staff and 30 customers. Both primary and secondary data were collected. Questionnaire coupled with personal interviews were the main research instrument. The data was analyzed by the use of chi-square statistical method.The study came out that insurance companies in Enugu state (Leadway Assurance) exercise their marketing functions and strategy mainly through advertising and sales promotions as a guide to customer profit motive and competitive tool. It was recommended that insurance companies should endeavor to establish a monthly publication. Such publication will serve as strong public relations machineries in promoting the image of insurance industry.
1.1 Background of the Study
In Nigeria, the issue of taking life assurance policy has been neglected, in the sense that at this presence time, it is estimated that not up to two percent (2%) of Nigerians own life assurance policies. For this fact, the benefits and roles life assurance plays in this country is being viewed from a very crooked point thereby making it slightly visible.
Moreover, the life assurance industry has entered on era of accelerated change as a result of increased competition in the products and pricing within all the insurance sectors. Hence professional marketing management is now a prerequisite, if a company is to return or advance its position in the competitive hierarchy they must follow suit.
However, before choosing the kind of cover to take, the intending assured should first of all sit down and analyzed his need. Life assurance has been said to be for those who live too long and those who die too soon. The needs of people in both these categories can be met. Most salary earners and wage earners have other people depending on them, it could be parents, a wife, children or even brothers and sister. In life assurance programs, funds are accumulated through payments made by the assured person called premium so that, should death occur, prior to a specified date or upon survival at an agreed period funds would be made available from the scheme to pay whatever benefits that are due.
The idea of assistance and association is not new to the Nigerian society. Various town and clan unions and social dubs, have various ways of showing benevolence to their bereaved members as discussed earlier. It is customary for people to pay condolence visit and present a sympathy purse. These practices are similar to mutual life assurance.
However, life assurance as practiced today is part of the nation’s colonial heritage. Obviously, the British introduced life assurance into Nigeria, hence the practice closely follows, the British pattern. The earliest colonial insurance interest in Nigeria was directed to the general insurance of goods and cargo.
Few life businesses which tricked in were referred to British Home Officers in London for processing. Only the affluent could afford it then because it was considered as enormous risk to insure person living in the tropics and the cost of providing such life cover was very expensive and uneconomical.