ABSTRACT
It
is common to see report of business falling than business succeeding almost
always, the failure or success of a business can be attributed to its
management. When a business is mismanaged, it will lead to liquidation, the
company will not meet their solvency margin thereby running away from their
obligation as to settle claims which in turn portray ugly insurance image. This
study there for is exploratory study designed to determine how life assurance
fund are properly managed. The population of the study comprises both staff and
customers of union assurance Enugu. A sample size of fifty (50) was selected
made up of 20 staff and 300 customer both primary and secondary data were
collected. Questionnaire coupled with personal interview were the main research
instrument. The data was analyzed by the use of chi square statistical method.
The study came out that for proper management of life insurance fund, the
premium should be invested both in short band long term investments so that
insurance company will meet their obligation as to settle claims. It was
recommended that all the stakeholders, including management of insurance
companies, policy makers and policy holder should collaborated come out with
conductive business climate to ensure effect management of life assurance funds
for great returns to investors.
Table of content
TABLE
OF CONTENT
CHAPTER
ONE
INTRODUCTION
Literature Review
1.1 Background of study
--------------------------------1
1.2 Statement of problem -------------------------------5
1.3 Objective of the study
--------------------------- ---5
1.4 Research questions
------------------------------- -6
1.5 Research hypothesis
--------------------------------7
1.6 Significant of the study
-----------------------------7
1.7 Scope and limitation of the study
----------------8
1.8 Definition of the terms -----------------------------9
CHAPTER
TWO
Literature review
2.1 An
overview ----------------------------------------- 12
2.2 Historical
development of the case of study ----14
2.3 History
of life assurance program -------------
-16
2.4 Meaning
and purpose of fund --------------------17
2.5 Management
of insurance fund ------------------21
2.6 Model
to guide life assurance fund----------------22
2.7 Problem
recounted red in investment of insurance fund-----------------------------------------------------24
2.8 Prospect
of adequate management --------------- 26
CHAPTER
THREE
Research methodology band design
3.1 An
overview -------------------------------------------30
3.2 Source
of Data ----------------------------------------31
3.3 Population
of study-----------------------------------33
3.4 Sampling
size determination -----------------------34
3.5 Questionnaire
administration ----------------------35
3.6 Method
of Data analysis-----------------------------36
CHAPTER
FOUR
DATA PRESENTATION ANALYSIS AND
DISCUSSION OF FINDINGS
4.1 Data
presentation---------------------------------38
4.2 Testing
of hypothesis------------------------------53
4.3 Discuss
of finding --------------------------------- 56
CHAPTER
FIVE
SUMMARY
OF FINDING CONCLUSION AND RECOMMENDATION
5.1 Summary
of finding---------------------------------58
5.2 Conclusions------------------------------------------61
5.3 Recommendation------------------------------------64
5.4 Suggestions
for further studies--------------------65
Bibliography ------------------------------------------67
Appendix----------------------------------------------69
Research questionnaires----------------------------------70
ABSTRACT
It
is common to see report of business falling than business succeeding almost
always, the failure or success of a business can be attributed to its
management. When a business is mismanaged, it will lead to liquidation, the
company will not meet their solvency margin thereby running away from their
obligation as to settle claims which in turn portray ugly insurance image. This
study there for is exploratory study designed to determine how life assurance
fund are properly managed. The population of the study comprises both staff and
customers of union assurance Enugu. A sample size of fifty (50) was selected
made up of 20 staff and 300 customer both primary and secondary data were
collected. Questionnaire coupled with personal interview were the main research
instrument. The data was analyzed by the use of chi square statistical method.
The study came out that for proper management of life insurance fund, the
premium should be invested both in short band long term investments so that
insurance company will meet their obligation as to settle claims. It was
recommended that all the stakeholders, including management of insurance
companies, policy makers and policy holder should collaborated come out with
conductive business climate to ensure effect management of life assurance funds
for great returns to investors.
Table of content
CHAPTER
ONE
INTRODUCTION
1.1
Background Of The Study
It is common to report
of business failing than business succeeding almost always, the failure or
success of a business can be attributed to its management. When a business is
mismanaged, it will lead to liquidation the company will not meet their solvency margin thereby running away from
their obligation image. However it will also have a drastic effect on the
Nigeria economy when it failed. In order top nurture the interaction, this
research focus on insurance industries and how they management life assurance
premium, to know if the premium are invested as stipulated by law, how they
handle claim and the beneficiaries and also how life assurance fund help in the
economic development of Nigeria.
Moreover, management of
life assurance fund in insurance industry related primarily to the way the
industry management life assurance premium in order to achieve organizational
goal and objective using available fund efficiently and effectively.
However in context to
management, union assurance limited. Limited is an associate of union bank of
Nigeria plc. The company was registered as an insurer on November 18, 1993 and
actually commence business in 1998. At the time, it was the first attempt by
any bank top venture into universal banking. It therefore become the life
assurance specialist’s underwriter with in the same period. recently, union
assurance is redefining those strong potential to challenge industry management
with the top five brackets. Apart from restructuring its operations, the
company is diversifying and expanding at a period where competitor mare
contracting due to uncertain economic conditions. (a new management driving
change and excellence is in place and
venturing into new frontiers that were uncultivated. The changed in management
has also brought to bear on the company’s operation innovation which are
impacting passively on the work culture in union assurance) union assurance
also has a robust investment portfolio cutting across assets in the equity,
money bond and property marked totaling over N5
billion they also employs a conservative but dynamic investment strategy geared
towards increasing the company income and profitability.
More so, in managing
life assurance fund money is pooled together with that of other investors to
create a single strong fund that provide significant investors benefits which
include an instant increase in buying strength there by contributing towards
economic development in Nigeria. However, life assurance fund accumulate
through payment 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 for assistance and association is not new to the Nigeria society
various town and clan union and social clubs have various ways of showing
benevolence to their bereaved. It is customary for people to pay condolence
visit and present a sympathy purse. Practices are similar to mutual life
assurance.
In addition to this,
there are also the long-term needs to create and sustain an enable environment
that will engender safe practice against destructive runs in managing life
assurance funds, protecting and ensuring fair play among insures in the
industry.
1.2 State of problem
Complex set of
interrelated problem are identify as following:
i.
Mismanagement
ii.
Inability
to invest life assurance fund in varieties of security due to lack of experts.
iii.
Ineffective
investment management of life assurance fund which affect expectations of the
insuring public and growth of the industry.
1.3 Objective of the study
Having been exposed to
the problem the research tends to achieve the following:
1.
To
described implication and suggest possible ways of managing life insurance
fund.
a.
To
assess the factors that determines the area of investments of life assurance
fund.
b.
To
ascertain whether life assurance fund are invested more on short- term
investment than on long-term investment instrument or vice versa.
c.
To
promote investors confidence toward life assurance.
1.4
Research Question
1.
What
appropriate strategies can be put in place to ensure effective management of
life assurance funds?
2.
What
factors determine the areas of investment of life assurance fund?
3.
What
form of investment is life assurance fund put into most (long term or
short-term investments insurance)?
4.
What
are the trend expectation of the insuring public?
1.5
Research Hypothesis
The research work tends
the following hypothesis listed below:
HO: Management of life assurance has no positive
effect on the economic growth and development of Nigeria.
H1: Management of life
assurance fund has positive on the economic growth and development of Nigeria.
1.6
Significance of the study
It is aimed that study
will help the insurance to plan organize and control life assurance fund in
order to maintain proficiency and standard in insurance practice thereby
investing life assurance fund in varieties of investment. In turn have adequate
fund to settle claim which portray good insurance image and bring development
in Nigeria economy.
It will also aid the candidate or
student having HND in insurance to know the various areas where insurance can
invest.
1.7
The scope limitations of the
study
This research work
limit to one of the insurance companies in Enugu, union assurance company of
Nigeria to be precise.
There are a lot of
constraints in the gathering of information of the research work but the major
constrain are following are to be precise.
a.
TIME: in report to the theoretical and
practical work the time allowed the project was limited beside there was
carried out with other academic assessments.
b.
FINANCIAL: Due to high rate of academic fees, I
could not be able to carry out research with easy as I was planned.
1.8
Definition of terms
i.
MANAGEMENT: This is the act of running and
controlling a business or similar organization so as achieve the organizational
goal.
ii. INSURANCE: Is a contract between two
parties insured whereby the insured pay small amount of money called premium
and the insurer promise to compensate the insured when the specified risk
insured against occur.
iii. LIFE ASSURANCE: Is a contract of
insurance on party called the insurer agreed that subject to some term
exception and condition and condition that he would pay some money on the dearth
of life assured on the precious maturity of the policy
iv.
FUND: This is an amount of money that have
been saved or made available for particular purpose.
v.
PREMIUM: Is the monetary consideration paid by
the insured for insurance covers ie the price of service rendered.
vi.
INVESTMENT: To put money effort Time into some
things to make a profit or get an advantage. It can buying of property or share
in a company as to make profit out of it
vii. MANAGEMENT: To
organize or control a business badly.
viii. LIQUIDATION:
To cause a because to close, so that its assets can be also to pay its debts ie
the process by which a company or part of a company is bought to an end, and
the asset and property of a company redistributed these can also be seen as
winding up of a firm by selling off its free (unpledged) assets to convert them
into cash to pay the firm’s unsecured creditors.
ix.
SOLVENCY MARGIN: This is a minimum excess on an
insurance assets over its liabilities set by regulator. It can be regard as
similar to capital adequacy. It is also company ability to pay claim.
x.
POLICYHOLDER: Is a person or a corporation whop
owns an insurance policy. It also the owner if an insurance policy: usually,
but not always the insured.
xi.
STAKEHOLDER: A person group or organization that
has interest or concern in an
organization ie person, group
xii. Organization member or system who
affect or can be affected by an organizations.
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