Insurance Companies In Nigeria Research Articles

Enhancing Public Confidence in Audit Reports of Listed Insurance Companies in Nigeria: Forensic Audit Perspective

Enhancing Public Confidence in Audit Reports of Listed Insurance Companies in Nigeria: Forensic Audit Perspective

Audit committee effectiveness and audit quality of listed insurance companies in Nigeria

Audit committee effectiveness and audit quality of listed insurance companies in Nigeria

An Assessment of the Organizational Size Influence on Debt to Equity Ratio among Insurance Firms in Nigeria Stock Market

The purpose of this paper is to discover the assessment of the organization’s size influence on debt to equity ratio among quoted insurance firms in Nigeria. The main objective of the study was to assessment of the organization’s size influence on debt to equity ratio among quoted insurance firms in Nigeria. The relevant literature was reviewed for the purposes of this study. This study adopts the ex-post facto design. The paper uses secondary data only extracted from the Annual Reports and Accounts of 16 sampled firms out of the insurance companies in Nigeria. The target population of this study is the thirty-two (32) quoted insurance firms on the Nigerian Stock Exchange (NSE) and random sampling technique was used. Multiple regressions were used to analyse data and the hypotheses was tested at 5% significant level using Statistical Package for Social Sciences (SPSS). It was found that Firm size has a significant positive effect on Debt to Equity Ratio of listed insurance firms on Nigeria (p value = 0.031). The study recommended that managers should consider the organizational age effect on debt to equity ratio and the effect of firm size on capital structure should be taken into consideration when making decisions on debt financing.

Company-Specific Correlates of Corporate Profitability: Evidence from Quoted Insurance Companies in Nigeria

Company-Specific Correlates of Corporate Profitability: Evidence from Quoted Insurance Companies in Nigeria

Monetary Policy and Return on Equity of Quoted Insurance Firms: A Time Series Study from Nigeria

The financial system is the transmission channel of monetary policy. This study examines the effect of monetary policy on the performance of insurance firms in Nigeria from 1990 – 2017. The objective is to investigate the existing relationship between monetary policy instruments and the performance indicators of insurance companies. Secondary data were sourced from Stock Exchange factbook, Central Bank of Nigeria (CBN) Statistical Bulletin. Multiple linear regressions were formulated to examine the effect of the independent variables on the dependent variable. Return on equity was modeled as a function of treasury bill rate, monetary policy rate, interest rate, growth of money supply and exchange rate. R2, T-Statistics, β Coefficient, F-Statistics and Durbin Watson were used to examine the extent to which the independent variables affect the dependent variables while augmented dickey fuller unit root test, granger causality test, cointgration test and error correction models was used to ascertain the dynamic relationship between monetary policy variables and return on equity of the insurance firms. Findings revealed that, all the explanatory variables have positive effect on return on equity except treasury bill rate. The unit root test found that the variables are stationary at first difference, the cointgration test found the presence of long run relationship while the granger causality test found a uni-directional causality. The study concludes that monetary policy has moderate effect on the return on equity of the insurance firms. We recommend that management of insurance companies should devise measures of managing the negative effects of the monetary policy instruments to enhance the performance of the insurance companies.

Insurance Products: Technological Service Delivery Perspective

The main objective of this study was to investigate the impact of technological service delivery on insurance products. 150 staff of some insurance companies in Osogbo were selected for this study through multistage sampling technique. Data from the questionnaire were coded, categorized and analyzed using Simple Percentage, Pearson product-moment Correlation and Simple Linear Regression analysis. This study concluded that the introduction of technology has significant impact on the efficiency of the Nigerian insurance companies. It was also found that technological service delivery has direct impact on the increase in the purchase of insurance products. It is recommended that Insurance companies in Nigeria should enhance their interest in technological service delivery in order to further improve performance effectiveness in each part of their business operations.

EFFECT OF CLAIMS PAYMENTS ON PROFITABILITY IN THE NIGERIAN INSURANCE INDUSTRY

Profitability determines an insurance company’s ability to make claims payments as at when due. The objective of this study is to examine the effect of claims payments on the profitability of insurance companies in Nigeria. Secondary data were generated from the financial statements of the two selected insurance companies, covering the periods 2011 to 2016. Using descriptive statistics and the multiple regression techniques, the data was analyzed with the aid of the Statistical Package for Social Sciences (SPSS version 23). The result reveals that ROA (profitability) has an indirect relationship with LR (loss ratio) and NC (net claims), but a direct relationship with ER (expense ratio). It further reveals that net claims have a significantly positive impact on loss ratio. The study recommends that the Nigerian insurance industry must effectively manage their claims processes, in order to reduce the amount of claims for every earned premium.

Company-Specific Correlates of Corporate Profitability: Evidence from Quoted Insurance Companies in Nigeria

Company-Specific Correlates of Corporate Profitability: Evidence from Quoted Insurance Companies in Nigeria

Impact of Claims Management on the Profitability of Nigerian Insurance Company: An Empirical Study of the Non-Life Insurance Sector

Claim is the largest expenses of an insurance company. Therefore, claims management is seen as an essential tool of image boosting in insurance industry. Excellence in claims handling gives an insurance company a competitive edge over its competitors. For an insurance company, claims processing is one of its core activities. It could be said to be the main reason why insurance companies are established. Managing it more effectively and efficiently, aligning it with corporate business objectives, and achieving real-time operational awareness are high priorities of an insurance company. This is because claims processing touches all part of the organization, affecting competitive positioning, customer service, fraud management, risk exposure, cost control and Information Technology infrastructure. The objective of this research therefore, is to empirically investigate the impact of claims management on the profitability of non-life insurance companies in the Nigeria insurance industry. Hypotheses were tested to find out whether claims management is significantly related to profitability of non-life insurance companies in Nigeria. The study adopts longitudinal design which follow the same sample over time and make repeated observations; hypotheses were tested using correlation analysis. The study revealed that there is a significant relationship between claims management and the operating cost of non-life insurance companies in Nigeria. However, the study revealed that there is no significant relationship between claims management and profitability of non-life insurance companies in Nigeria. It is recommended that the claims management department should be properly structured with highly technical, trained and experience staff so as to manage the claims of insurance companies properly as a well managed claim lead to profitability through repeated purchase.

Effect of Liquidity Risk, Premium Growth on the Performance of Quoted Insurance Firms in Nigeria: A Panel Data Analysis

This study assesses the effect of liquidity risk on firm performance of listed insurance companies in Nigeria for the period of 2011-2015. The listed insurance firms are twenty Five (25) in numbers out of which a sample of twelve (12) were used for the study. Liquidity risk as the independent variable was proxy with leverage, claim loss ratio and premium growth, while the return on asset was used to proxy firm performance. The study adopts a panel multiple regression techniques and data were collected from secondary source through the annual reports of the firms after controlling for fixed/random effects.The findings of random effect reveal that leverage has significant negative effect on return on assets. The claim loss ratio has insignificant negative influence on return on assets while premium growth has positive and insignificant effect on firm performance of listed insurance companies in Nigeria. It is recommended among others that the managers, shareholders and other stake holders to checkmate and control liquidity risk as it have been found empirically to enhance the quality of the firm’s financial performance.

Determinants of Compliance With Disclosure Requirements of IFRS 4: Evidence From Quoted Insurance Companies in Nigeria

Publicly quoted companies are expected to fully comply with disclosure requirements of International Financial Reporting Standards (IFRS) during the preparation and presentation of their financial reports. However, this is far from what is obtainable in real situation; as evident in the existing literature. Hence, this study examined the determinants of compliance with disclosure requirements of International Financial Reporting Standard (IFRS 4 - Insurance contracts) among quoted insurance companies in Nigeria; the study further examined the influence of four company attributes (leverage, profitability, liquidity, and size) on the extent of compliance. With the aid of a self-constructed compliance checklist, an index was derived to quantify the level of compliance with disclosure requirement of IFRS 4; after applying the checklist to the 2012-2014 annual reports of sample companies. The study used panel regression technique to examine the influence of the four company attributes on the extent of compliance. The results showed an aggregate mean compliance of 80.38% to IFRS 4 disclosure requirements. A significant positive relationship was found between the level of compliance and company liquidity, and profitability (both at 5% level of significance), while a significant negative relationship was found between company leverage and extent of compliance (at 10% significance level). The study recommended among others that; regulators’ compliance enforcement and monitoring mechanism be improved upon, as well as exercising great caution and put in more attention while assessing the disclosure compliance of highly leveraged companies.

Insurance Investment in Strategic Human Capital Development: The Pains and Gains from Panel Microdata

This study examined the effect of insurance investment in strategic human capital development (SHCD) on performance of insurance companies in Nigeria. The fact that investment in SHCD is one of the most topical issues in the Nigerian insurance management and the continuous weak performance of insurance sector made this investigation necessary. The major objective of the study therefore was to examine the effect of insurance investment in staff training & development, wages & salary, retirement benefits compensation on employee value added (EVA), gross premium written (GPW), return on asset (ROA), and return on equity (ROE) of insurance companies. The study employed a quantitative research design and collected data from 20 insurance companies listed in Nigerian stock Exchange (NSE) over 2010 to 2014. The analysis was performed using pooled OLS, fixed effect and random effect estimation techniques. Results indicated that investment in SHCD on aggregate has no significant relationship with EVA but does with GPW, ROA and ROE whereas investment in SHCD practice like retirement benefits allowance has no relationship with all dimensions of performance of insurance companies. It was concluded that insurance investment in SHCD affect its performance unevenly. We recommend that management of insurance companies should train and develop its staff, devise incentivized salary and wags packages and committed to after work life benefits. This way, its SHCD investment will yield all-round proportionate increase in its performance in Nigeria.

Impact of Capital Structure on Insurance Firms’ Performance in Nigeria

The study investigates the impact of capital structure on firm’s performance (Insurance companies) in Nigeria for a period of 5 years (2011-2015) for a sample size of 12 insurance companies. Data were collected from the audited financial statement of insurance companies in Nigeria. Data collected were analyzed with the use of ordinal least square (panel regression). From our findings, it was observe that long term debt to total assets and total debt to total assets are negatively related to firm performance Return on assets. It is hereby recommended that firms should use more of equity than debt in financing their business operation; this is because as much it is important that the value of a business should be enhanced with debt capital, it gets to point that it becomes unfavorable. Hence, each firm should choose an appropriate debt-equity mix that maximizes it value and minimizes it cost of capital.

Effect of Corporate Governance Mechanisms on Financial Performance of Insurance Companies in Nigeria

This study investigated the effect of corporate governance on financial performance of Insurance companies in Nigeria. The study adopted ex-post facto research design and panel data covering five year period from 2011-2015 for twenty insurance companies. The study examined a range of corporate governance mechanisms such as board size, board independence, executive directors’ remuneration, non-executive directors’ remuneration, directors’ ownership, institutional ownership, foreign ownership and the study controlled the effect of the firm size using log of total assets. The Fixed effects model was used to evaluate the effect of these corporate governance mechanisms on financial performance of Nigerian insurance companies. The fixed effect econometric estimates showed that, board size and non-executive directors’ remuneration have negative and significant effect on financial performance proxy by return on assets (ROA). While board independence, and institutional ownership indicated positive and significant impact on the financial performance as predicted by agency theory. However, contrary to theoretical predictions executive directors’ remuneration, directors’ ownership, and foreign ownership did not make significant impact on the financial performance of Nigerian insurance companies. However, the fixed effect econometric estimator employed in this study indicated that corporate governance mechanisms affects the financial performance of Insurance companies in Nigeria. Therefore, the study recommends among other things that the board be restructured to a manageable size, and suggested that a performance-based remuneration be design for the directors. In addition, more non-executive directors should be appointed to the corporate board to enhance the effectiveness of the board in aligning the interest of the stakeholders.

Reinsurance and Performance of the Ceding Companies: The Nigerian Insurance Industry Experience

AbstractThis paper examines the relationship between ceding office gross premium income, underwriting profit and financial stability. The study made use of primary and secondary data. The primary data were obtained from 246 respondents selected from those companies through the use of structured questionnaire. The secondary data obtained from the 2014 and 2015 published financials of the selected ten companies were used to determine the Reinsurance Ceded Ratio (RCR), Return on Asset (ROA), Return on Equity (ROE) as well as the Ratio of Reinsurance Recoverables to Policyholders Surplus (RRPHS). A descriptive research design was employed. The sampling technique adopted was purposive in nature. The study population comprises 56 insurance companies in Nigeria. More so, data collected was analysed using correlation analytical method. The results of this study are quite in line with previous studies and show that reinsurance purchase increases significantly the insurers’ premium income. It is also shown that profitability of the firm is sensitive to change in reinsurance utilisation and has a positive relationship with it. It was established in the study that purchasing reinsurance reduces insurers’ insolvency risk by stabilizing loss experience and increasing capacity. Recommendations were made.

Influence of Human Resources Management on Service Quality of Risk Business in Northwestern Nigeria

Purpose: Human Resources Management (HRM) practice displays a key function in customer satisfaction in the cognitive of service quality in selected insurance companies in Northwestern Nigeria. The significant of service industries are labour oriented where insurance sector is not an exception because their performance is determined by the quality of risk management services to their customers (Insured). This paper is aimed to investigate Human Resources Management Practices and Service quality in selected insurance companies in Nigeria.
 Methodology: The study adopts secondary data which review related literatures from journal articles and other literatures on assessment of the concepts.
 Finding: The paper finds that there is a significant relationship between Human resources management practices and service quality in the insurance industry. It also reveals that Human resource management practices directly affect overall service quality in terms of customer base, customer retention, overall profit, productivity and risk improvement to the customers.
 Implication: Organization having good HRM Practices will improve the quality of services provided and also improves performance and customers'loyalty.

The Nexus of Dividend Payout and Profitability Performance of Insurance Firms in Nigeria

The article examined the influence of profitability performance on dividend payout of insurance firms in Nigeria for duration of five years 2010–2014 using multiple regression. The study used dividend payout as a dependent variable which is measured in form of ratio to the earning per share against return on Asset, Return on Equity and Return on Investment, profitability ratios as explanatory variables. Data has been collected from company’s annual reports, Nigeria Stock Exchange and Bureau of Statistics, where it was discovered that there is no high significant influence between the dividend payout and the profitability performance. Meanwhile, there is high significant of return on investment on the dividend payout of the firms. It was recommended that government should improve on the macro-economy policies so as to increase the strength of the insurance firms in Nigeria.

The Performance of Marine Insurance Firms in Nigeria: An Augmented SWOT Analysis

The performance of Nigeria insurance industry has been ranked below global standards and which ranking has implications on risk management in the maritime shipping sector. In this paper, the performance and operating environment of a sample of insurance firms (with marine risk portfolios) were empirically examined. Secondary data on earned premium income, indemnity paid, management expenses and total expenses representing performance indices of these firms over a period from 1974-2013 were collected for analysis of their operational performance. Qualitative data were also extracted from existing literature for Strengths, Weakness, Opportunities and Threats (SWOT) analysis to determine the attributes of operating environment of the insurance firms. An Analysis of Variance (ANOVA) model tests on the performance indices showed that the insurance firms earned more premium than indemnity paid out during the study period. Their management expenses however, exceeded amount of indemnity paid. In terms of challenges facing the firms, the SWOT analysis revealed prevalence of poor quality service delivery to insurance customers, customer distrust, inadequate technical manpower and unfavourable macro-economic environment. Prospects for growth of the industry were found favourable due to introduction of local content policy/cabotage shipping Acts and upgraded risk management framework. The paper recommends that more specific policy interventions be directed at complete removal of impediments in the operating environment of marine insurance firms since their performance outcome has implications on viability of shipping and related maritime businesses.

English

Financial reforms have been an ongoing process, not only in Nigeria but the world over. Prior to the recapitalization of the insurance sector in 2005, the industry was characterized by the inadequate capital base, the dearth of appropriate human capital and weak performance. The objective of this paper is to examine the effect of capital size on the profitability of insurance companies in Nigeria. The researcher used correlational research design to carry out the study. Secondary data was sourced from Nigerian Stock Exchange Fact Book 2012, and we used Panel regression model (random effect) to estimate the impact of capital size on the profitability of insurance companies in Nigeria. The results provided evidence to believe that capital size and gross premium have a positive but insignificant effect on the profitability of insurance businesses in Nigeria. Hence regulators should not put much emphasis on the issue of recapitalization of insurance companies,  but on other policies that will increase the market penetration ability of the insurance companies as indicated by the gross premium earned.   Key words: Recapitalization, capital size, and profitability.

Empirical examination of the implementation of electronic payment systems in service delivery of insurance companies in Nigeria

(ProQuest: ... denotes formulae omitted.)IntroductionTechnology readiness to backing payment system in the Nigerian insurance market is, indeed, a Herculean task due to its peculiar nature which is further encapsulated by the vagaries of Nigeria's business and market forces. The recent study of Asikhia [2010] had opined that until companies are able to deliver their services in an efficient manner, with technology as key determinant, financial institutions may not be able to retain their customers. The decisions concerning where, when and how to deliver such service have a significant role on the nature of customers' service experiences [Lovelock & Wright 1999].However, technology is being employed to capture information on customers, which in turn is used to monitor the customers' buying behaviour and thus communicate with them via personalised offers [Egan 2004]. Oghojafor, Aduloju, & Olowokudejo [2011] had emphasised that, in the world of business, electronic commerce serves as the cornerstone which evolves relationship within strategic-oriented business environment and thus, strategised for modern competitive edge. The work of Idris, Olumoko, & Ajemunigbohun [2013] opined that enormous effort should be put together at integrating information technology, customer service and firm performance; and thus stipulated that technology is to the advantage of customer and should lead to customer loyalty, as organisation can communicate with customers using up-to-date techniques on a real basis which will remove uncertainty and lead to the creation of trust.Electronic payment system is being noted as vital part of e-commerce. Imperatively, the wider patronage of e-commerce is being said to hinge upon the availability of a guaranteed and trusted e-payment system [Sumanjeet 2009; Baddeley 2004]. Some previous studies [such as Oladele & Akanbi 2012; Ayo & Ukpere 2010; Zulu 2006] had noted problems militating against e-payment to include: integrity, non-reputation, confidentiality, reliability, authentication, authorisation, connectivity failure in telephone lines, devoid of proper legal and regulatory framework, and low level of credit access.While much studies are yet to be recorded on electronic payment implementation in the service delivery of insurance companies in Nigeria; some notable studies, many of which are recent, seem to suggest that, apart from differences in the methodology and variables adopted, electronic payments systems implementation had been feasible in the customer service delivery in the banking sector of the financial system [Moses-Ashike 2012; Auta 2010; Fenuga & Oladejo 2010]. For example, the study of Kaleem & Ahmad [2008] noted that increased availability and accessibility of more self-service distribution channels assists bank administration in reducing the expensive branch network and its associate staff overheads. Some other earlier studies [such as Howcroft, Hamilton & Hewer 2002; Kiang, Raghu & Hueu-Min 2000] established that the most important factors encouraging consumers to use electronic banking and lower fees followed by reducing paper work and human error, which invariably curtail disputes. More so, a decrease in the proportion of customers visiting banks with an increase in alternative channels of distribution had been said to reduce the queues in the branches [Thornton & White 2001].This article, therefore, attempts to provide answers to the following research questions: Has there been improvement in the implementation of electronic payment systems in the service delivery of insurance companies in Nigeria? or Has electronic payment system been fully accepted in the Nigerian insurance market environment? The remainder of the paper is organized as follows: the review of existing literature on electronic payment in relation to service delivery including the theoretical underpins. The methodology section takes note of the empirical analysis including the sample and data collection procedure, the measurement of the variables of interest, and the results. …