Nigerian Insurance Industry Research Articles

Organizational Commitment and Corporate Ethical Values: Exploring the Nexus between Employees' Psychological Contract and Firms' Ethical Behaviour in the Nigerian Insurance Industry

Commitment of employees to their organisations has been one of the central research themes in organisational study. Though, many predictors of organisational commitment abound in the literature, much is however not known on how ethical behaviour in the organisation affects employees’ commitment. Considering the nature of insurance services, and high potentials for ethical dilemma in the industry, this study contributes to organisational commitment literature by providing further understanding on the impact of corporate ethical values on organisational commitment in Nigeria. Underpinned by cognitive dissonance theory, the study proposes a significant relationship between the two constructs. While controlling for some demographic factors, corporate ethical values was hypothesized as a significant determinant of organisational commitment. With data from 415 managers, collected through Hunt’s et al (1989) Corporate Ethical Value and Hunt’s et al (1985) organisational commitment scales, the results of the multivariate analysis were presented, and discussed with managerial implications.

Customer relationship management as a correlate of organisational performance in the Nigerian insurance industry

This study aims to find out if there is any relationship between customer relationship management and organisational performance in the Nigerian insurance industry. Relevant literature was reviewed and a model was conceptualised and tested by means of empirical data collected through a questionnaire survey. The findings confirm that there is a positive relationship between customer relationship management and organisational performance. It was also found that companies image and branch network intervene in the relationship between CRM and organisational performance. The study made significant contribution to knowledge by identifying the CRM variables that enhance organisational performance. The study recommended that insurance companies should improve on their CRM practices in order to enhance organisational performance. It is also recommended that a stakeholder’s forum should be organised regularly in order to bridge the communication gap between the staff and customers so that their perceptions can be synchronised.

The effects of advertising media on sales of insurance products: a developing‐country case

PurposeCharacterized by declining goodwill and exemplified sharp drop in gross premium, the Nigerian insurance industry, in recent times, has experienced turbulent economic challenges that necessitated re‐engineering of its core activities. However, advertising and sales are core activities, which are important predictors of stability and growth in the insurance industry. Consequently, the purpose of this paper is to examine the impact of advertising on sales of insurance products.Design/methodology/approachAn empirical investigation is carried out using a survey that utilizes questionnaires, interviews, and field observation as major research instruments. A total of 71 insurance companies in Nigeria, which represent the total operating insurance companies in Nigeria at the time of study, were surveyed. With 100 scientifically selected subjects sampled, descriptive analysis was employed to understand the relationship and the strength of such relationships.FindingsIt was found that advertising had effects on sales volume and improved public image. However, the choice of advertising medium, the message, and the format are critical ingredients of a successful advertising program in the insurance industry.Research limitations/implicationsThe insurance industry in Nigeria was studied from a holistic viewpoint due to the need to present reliable and detailed information for decision makers. However, limitation in achieving this relates to the reluctance of respondents to release information for the study.Practical implicationsThe implication of this research is that proper control of advertisement budget vis‐à‐vis the expected sales volume could be made. Thus, organizations could spend budgets more effectively on growth enhancing projects instead of excessive wastage of funds on advertisement.Originality/valueThis paper seems to be the first original work that concerns the impact of advertising on sales in the Nigerian insurance industry. As such, it bridges a gap that is opened for investigations. It may be of great value to decision making seeking for control tools.

Recapitalization, mergers, and acquisitions of the Nigerian insurance industry

PurposeRecapitalization, mergers, and acquisitions are the most crucial issues confronting the Nigerian Insurance Industry (NII) in recent times. Yet information relating to these issues is rarely reported in print. The purpose of this paper is to present the results of a survey aimed at understanding the challenges faced within the NII and the reactions of the insurance underwriters towards the recapitalization exercise in Nigeria.Design/methodology/approachStratified sampling was applied in segregating listed insurance companies on the Nigeria Stock Exchange into top‐, middle‐, and lower‐management cadres. Random sampling was then used in selecting samples of the insurance company's staff. A questionnaire containing both open‐ended and closed‐form questions was used as the instrument to collect the primary data. Questionnaire administration was combined with personal interviews and record viewing in gathering relevant facts for use. Fifty‐four questionnaires were properly filled and returned from members of staff of the selected insurance companies. Chi‐square statistical procedures revealed the true position of the issues raised in the hypotheses.FindingsRecapitalization has been enhancing the development of the insurance industry and mergers and acquisitions have remained viable options for companies to remain in business.Research limitations/implicationsLimited financial and non‐financial resources, as well as a reluctance to release information by insurance companies and other operators in the industry, prevented further investigation.Originality/valueThe study serves as an information source for investors in the insurance industry.

Beyond philanthropy: corporate social responsibility in the Nigerian insurance industry

PurposeThe purpose of this paper is to show that given the dearth of literature on how firms in the African continent have embraced and practiced corporate social responsibility (CSR), this study contributes to the CSR literature by examining managers' perceptions about CSR, structural changes to enhance, its implementation, and the pattern of current CSR actions in Nigeria.Design/methodology/approachThe study used quantitative approach and collected primary data through a three‐part structured questionnaire, from insurance firms operating in Nigeria. The 67 responses received were analysed descriptively and the results presented.FindingsThe overall results indicate a strong support for social responsibility and the translation of this support into action through involvement in some community based projects. Evidence from the study also suggests that social responsibility is still largely perceived as a philanthropic gesture.Research limitations/implicationsThe study only covers insurance firms operating in Lagos state. Furthermore, only one response represents the view of a firm, hence the need to exercise caution in generalizing the results.Practical implicationsSince the results suggest the readiness of the Nigerian insurance firms to go beyond the traditional view of profit and shareholders' wealth maximization, there must be a consistency between this posture and their actions.Originality/valueThe study provides an insight into perceptions about corporate social responsibility in the insurance industry, in a developing country and in Africa, which to the best knowledge of the author, have not been done before.

A conceptual model of asset portfolio decision making: a case study in a developing economy

Asset allocation decisions in general contribute to the efficiency or otherwise of financial management, determine the wealth of investors, including pensions and insurance funds, and underpin the allocation of scarce economic resources in the economy. This area has remained under researched in the developing economies and it is argued that the results of this study reflect on the shortcomings of the orthodox rationalistic approaches to decision making in finance. The study is in the tradition of naturalistic decision-making and adopts a modified grounded theory approach to the discovery of the core concepts that guide investment managers’ decisions. The paper presents the results of a case study of the decision-making processes of investment managers in the Nigerian Insurance industry. The naturalistic setting highlights the importance of the security of the investment, social networks, consistency of returns, competency of management, stable environment and legal and regulatory controls as core investment decision making concepts. The emerging conceptual model is delineated and the results reflect in particular on those factors likely to impact upon financial decision-making in a developing economy. Key words: Asset portfolio, risks, returns, naturalistic decision making, grounded theory, Nigeria

Customer Apathy to Insurance in Nigeria: Survey Results

Results of a recent survey of the Nigerian Insurance Industry reveal the underlying reasons for people's general indifference towards insurance. These include lack of communication by the industry, ignorance about insurance, doubts as to the integrity of insurance practitioners, and inability to afford the premium. Customers' complaints against insurance companies are detailed, providing useful pointers to what action insurers need to take. LBS Management Review Vol.5(1) 2000: 1-12

The Nigerian Insurance Industry: A Proposal for Reform

The Nigerian Insurance Industry: A Proposal for Reform