Recapitalization in the Insurance Industry: Proposed Problems : Current School News

Recapitalization in the Insurance Industry: Proposed Problems and Prospect

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Recapitalization in the Insurance Industry: Proposed Problems and Prospect.

 

Abstract

Performance of an economy determines the position of the particular nation in the world. The better the performance of an economy and the large economic resources it holds, the higher the level of influence of such country in the entire world.
There are many sectors of human endeavor that form the economic chain of a nation. Among these human activities or commercial activities are oil and gas, manufacturing and construction, education, Banking, Insurance etc.
Among these activities, insurance sectors of the economy were examined in order to be refining tune. Insurance sector of the Nigeria economy has witnessed doldrums for the past three decades.
Recapitalization of insurance sector of the economy was ventured into to determine whether such a process can be one of the sound instrument to refine tune the Nigeria economy.
A lot has been gained from the recapitalization process of insurance sector and the process has resulted into a success.
The research method used is survey. The sources of data were analytical and descriptive. This focuses on the measurement of the insurance sector’s asset against the Gross Domestic product and the problems that could be encountered during the recapitalization process.
Data obtain from the analysis of the secondary sources is from 2006 edition of statistical bulletin published by the Central Bank of Nigeria, revealed that asset value against Gross Domestic Product (GDP) from 1987 till 1993 were progressing with (GDP) of the nation on a high side where as from 1994 till 1998 the value of asset were retrogressing with a little difference in the Nation GDP.

Table Of Contents

Title Page  i
Certification  ii
Dedication  iii
Acknowledgment  iv
Abstract  v
Table of Content  vi

CHAPTER ONE

  • Introduction 1
  • Background of the study 2
  • Statement of the problems 4
  • Research Questions 6
  • Objective of the study 7
  • Research Hypotheses 8
  • Significant of the study 8
  • Scope and Limitation of the study 9
  • Plan of the study 11

Reference                12
CHAPTER TWO: LITERATURE REVIEW

  • Overview of the insurance sector of the Nigerian Economy           13
  • A Review of the Insurance Decree 1976 18
  • Objectives of Insurance Regulation 22
  • The Insurance Decree 1976 23
  • Paid up Share Capital Requirements 24
  • Investment 27
  • Manpower Provisions 30
  • Insurance Provisions 31
  • Premium Rates/Commission 34
  • The Impact of Re-value Assets in Post-FEM Era and the Insurance Industry   40
  • Re-FEM and its Rationale 42
  • The Impact 44
  • Capital Base of Insurance Companies 52
  • The Insurance Industry and the Development of the Capital Market in Nigeria    53
  • Insurance Industry and the Development Progress 61
  • Insurance and Agriculture: What Prospect for the Future 64
  • Future Prospects and Government Role 72
  • Manpower Development in Nigeria Insurance Industry 77
  • What is Manpower Development 78
  • Brief History of Manpower Development in the Nigeria Insurance Industry        81
  • Role of Insurance Industry and Trade Budget 1988 83
  • Nature of the Proposed Recapitalization Exercise in the Nigerian Insurance Industry   88
  • Reasons for Recapitalization 91
  • Challenges Facing the Recapitalization Exercise 93
  • Problems of Recapitalization 96
  • Prospects or Recapitalization Exercise 98

References                    103
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

  • Research Design 104
  • Statement of Research Questions 104
  • Statement of Research Hypothesis 105
  • Sources of Data 106
  • Model specification 107
  • Explanation of the Equations 108
  • Appriori Expectation 109
  • Limitations of the Methodology 109

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

  • Data presentation 110
  • Data Analysis 110
  • Interpretation of the Result 116

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

  • Summary of findings 117
  • Conclusion 118
  • Recommendations 119

Bibliography                 121

Introduction

Background Of Study
Government reforms in the insurance industry through the current process of recapitalization and consolidation are to restore confidence of the public in the market and enhance international competitiveness of local operators.
Consequently, the principal objective of the reform is to have emergence of bigger and stronger players in the industry with enhanced capacity.
The Nigeria insurers in time past had operated on marginal scale and that accounted for the reason why the market had not benefited much, especially in the oil and energy business.
The country is much more likely to experience sustained growth if her insurance market develops properly.
Insurance market development is related to improve financial sector performance and insurance markets do not develop adequately without both public and private sector development in their infrastructure.

Bibliography

Amirahamadi, H., and W. Eu. 1994. “Foreign Direct Investment in Developing Countries,” The Journal of Developing Areas 28: 167-190.
Avery, C. and j. Chevalier. 1996. “Identifying Investor Sentiment from Price Paths: The Case of Football Betting” Unpublished. Harvard University and University of Chicago.
Baldwin, R. 1979. “Determinants of Trade and Foreign Investment: Further Evidence.” Review of Economics and Statistic 111: 40- 48.
Barro, J. R. 1991. “Economic Growth in a Cross-Section of Countries.” Quarterly Journal of Economics 106: 408-443.
Bartik, T. 1985. “Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes and other Characteristics” Journal Business and Economics Statistics 3: 14-22.
Beck, N. and J. Katz. 1995. “What to do (and not to do) with Time- Series and Cross-Section Data. “American Political Science Review 89: 634-647.

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