Claims Settlement and Risk Attitudes: Evidence from the Motor Insurance Policyholders (original) (raw)
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Claims Handling Process Attributes: Perceptions Of Motor Insurance Policyholders In Lagos, Nigeria
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Poor Claims Settlement and Demand for Insurance Policies in Nigeria
This study investigates the poor claims settlement and demand for insurance policies in Nigeria to provide empirical evidence which would assist not only the insurance companies but also the policymakers by using these findings to design future insurance services and policies that can be geared towards promoting insurance market development. The population focused in the study included few licensed insurance firms in Nigeria. This is due to the fact that they dominate and control the larger interest in the market share. Total distributed questionnaires were 130, and a total of 115 responses were well filled with analysis and returned which is a very good percentage response. Chi-squared statistics and correlation with the tabulated contingency table on the basis of an assumptions were employed. The results show that poor claim settlement have significant effect on demand for Insurance policies in Nigeria and that there is long term and significant relationship between poor claim settlement and demand for insurance policies in Nigeria. The study therefore, recommend that insurance industry should be redefined through appropriate Acts, introducing competitions and innovations in the services so as to compete effectively and meet consumer needs by dealing with changing expectations of policyholders so as to ensure that satisfaction of all the parties are guaranteed.
The International Journal of Management, 2018
This study examines the impact of claim settlement on the performance of general insurance businesses with evidence from the Federal Capital Territory (FCT), Abuja-Nigeria. The specific objectives are to determine the extent to which claim settlement influence motor vehicle insurance policy and fire insurance cover on household goods in FCT. As part of the methodology, both primary and secondary sources of data were used in the study. A total of 408 copies of questionnaires were administered to selected employees of the insurance companies, their customers and owners of insured household goods, middlemen and industry stakeholders across the six Area Councils of the Federal Capital Territory (FCT), Abuja; out of which 297 copies of the administered questionnaires, representing 72.79% response rate were returned and used for analysis in the study. The study which was analyzed using descriptive statistics and multiple regression model to test the formulated hypotheses in line with the ...
Impact of Claims Settlement on the Development of Nigerian Insurance Industry (2007 – 2017)
INTERNATIONAL JOURNAL OF RESEARCH IN MANAGEMENT FIELDS
Claims settlement is a critical part of insurance contract, because it is vital to both the policyholder and the insurance company. This paper examines the Impact of Claims Settlement on the Development of Nigerian Insurance Industry (2007-2017). The objectives of the study include: to estimate the impact of total claims settlement on Insurance penetration in Nigerian, and to estimate the impact of total claims settlement on insurance density in Nigerian. The research design used was Ex-post facto research design. While Ordinary Least Square (OLS) regression method was utilized for data analysis. It was discovered that: total insurance claims had positively but insignificantly impacted on insurance penetration in Nigerian with p-value of [0.606]. While, total insurance claims had positively and significantly impacted on Insurance density in Nigerian with p-value of [0.007]. From the result of model one, the (AR 2) was-.097; this implies that only-9.7% of the total changes or variations in insurance penetration in Nigeria could be explained by total insurance claims settlement in Nigeria. While from the result of model two the (AR 2) was 0.619; this implies that 61.9% of the total changes or variations in insurance density in Nigeria could be explained by total insurance claims settlement in Nigeria. Based on these results the study concludes that claims settlement had impacted positively on the development of Nigerian Insurance Industry. Thus, it was recommended that: Insurance companies should have effective and efficient claims department equipped with modern technology and qualified claims manager(s) to oversee the management and settlement of valid claims of their policyholders in order to increase insurance penetration in Nigeria; Nigerian Insurance Industry regulators should enhance its supervisory frameworks to ensure that genuine claims are promptly settled by insurance companies and defaulter adequately punished. This will have positive impact on insurance density because more Nigerians will be encouraged to buy insurance policies. In line with the theoretical framework adopted for this study, and in addition to settlement of valid claims, insurance companies should periodically carry out marketing research to discover the insurance needs of their customers as well as prospective customers through product revitalization and new product development to increase customers" expected utility for buying insurance. This will encourage Nigerians to purchase more insurance, and in turn enhance the development of Nigerian Insurance industry.
EFFECT OF PROMPT CLAIMS SETTLEMENT ON THE PERFORMANCE OF NIGERIA INSURANCE INDUSTRY
The purpose of this research work has been to investigate and critically analyze the effect of claims settlement on the performance of Nigerian insurance companies with special reference to the selected insurance companies in Ilorin metropolis. Structured questionnaire was used to collect data from 5 selected insurance companies' staff, 4 insurance brokers, 15 sales agents and 21 public through purposive method totaling 45 respondents as sample for the study. Linear regression analysis was employed to analyze data collected with aid of Statistical Package for Social Science (SPSS). The result of the research carried out has confirmed that prompt claims settlements has positive significant effect on customer satisfaction and loyalty respectively. Moreover, the result indicated that prompt claims settlements has more influence on customer satisfaction than loyalty. The paper therefore recommended that insurance companies should discharge this responsibility in a professional way making sure that all genuine claims are settled and only fraudulent and ingenuine claims are repudiated.
Aims: This research aimed at drawing the attention of motorists and insurance practitioners in Nigeria to risk occurrences, drivers' risk attitude, and demand for motor insurance. For this reason, the researchers have evaluated the significant influence of drivers' risk attitude on risk occurrence and thus, examined the significant relationship between motorists' risk attitude and motor insurance demandStudy design: The study employed cross-sectional survey designPlace and duration of study: Study was carried out in Lagos Metropolis. Duration of study was from December, 2012 to February, 2014.Methodology: The research commenced with gathering of literature survey. The study employed stratified random sampling technique and also, gathered data through the use of structured questionnaire. The sample population consisted of 270 respondents made up of motorists of private, commercial and company-used drawn from Six Local Government Council Areas of Lagos State. The statistical instruments employed for this study were Kolmogorov-smirnov test and Multiple regression.Results: Two hypotheses were tested in this study. For hypothesis 1, the use of Kolmogorov-smirnov test evidenced that driver's attitude has significant influence on risk occurrence. For hypothesis 2, the Multiple regression presented that risk attitude of motorists has significant but negative relationship with the demand for motor insurance.Conclusion: The research evidenced a significant interrelationship between the understudied constructs .i.e. drivers' risk attitude, risk occurrence and motor insurance demand
A Critical Review of Insurance Claims Management: A Study of Selected Insurance Companies in Nigeria
SPOUDAI Journal of Economics and Business, 2017
This study is an empirical investigation of insurance claims management among selected insurance companies in Nigeria. For this purpose, the researchers have been able to review critically the significant contribution of the claims processing in the management of insurance firms’ claims. This study conducted in Lagos metropolis, employed a descriptive survey design using random sampling technique and thus gathered data through the use of structured questionnaire. The sample population consisted of 127 respondents made up of claims managers and other members of staff within the surveyed companies. One sample T-test was adopted in the analysis of collected data. Empirical assessment reveal that the various claims handling processing have significant effects in the claims management processes of insurance companies. The findings from study confirm the significance of the various claims handling processing in claims management of insurance companies in Nigeria. It therefore recommends t...
An Analysis of Claims Settlement and Insurance Companies’ Profitability in Nigeria (1981-2022)
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This study analyzed claims settlement and insurance companies' profitability in Nigeria (1981-2022). Problems arise when there is a claim report. The problems range from non-payment of claims, even when paid, it is not settled promptly and only a negligible proportion of claims are settled. On many occasions, disputes arise in claims settlement between the insured and the insurer. Violation of policy provisions can vitiate an insurance contract and is also capable of hindering claims settlement. The study is an empirical research and the secondary data used for the study were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin and Annual Report of NAICOM. The regression method was used to test the hypothesis. The finding revealed that there are significant influences of total expenditure and total income on the profitability of the Nigerian insurance companies while total claims settlement and total premium income have no significant influences on profitability. It was recommended that there is a need for the insurance industry to carry out sensitization and awareness campaigns on loss control devices for the insured. This reduces the loss frequency and claims amount considerably for sustainable profit. Managers of claims and the holders of policies should be educated in reporting claims processes such as loss minimization, claims verification, investigation, evaluating the degree of the damage preceding any replacement or repair and loss evaluation. This reduces claims report frequency and enhances the profitability and premium income of insurance companies. Insurance income generated in terms of premiums should be reinvested to upsurge insurance companies' profits.
Claims Payment, Risk Management and Financial Performance of Selected Insurance Companies in Nigeria
Journal of Insurance and Financial Management, 2022
The study examined the relationship between claims management, risk management, and financial performance of selected composite insurance companies in Nigeria. There are thirteen composite insurers in the industry out of which seven were randomly selected with full consideration to their annual report for 10 years (2010-2019) through the Nigerian Insurers Association Digest. The ex-post facto research design was employed. The findings show that underwriting practice, Premium valuation, worth of the Net claim, and derived claim ratio are positively significant to influence risk management practices. The study, therefore, concluded that underwriting guidelines employed by insurance companies in Nigeria increase the value of an investment and have a positive effect on the financial performance of composite insurance firms in Nigeria. Adjusting claims and benefits paid to policyholders of insurance firms increase the value of investment thus resulting in acceptable costs for every person which is usually determined by observed costs based on risk factors. The study recommends that the management of insurance firms should consider adopting Premium valuation methods to ensure the financial performance of composite insurance firms in Nigeria. This will allow management to create a comprehensive understanding that can be leveraged to influence stakeholders and create better decisions.