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ABSTRACT
The aim of this project is to review and evaluate both physical, social and economic effect of the acturist analysis of Nigeria Reinsurance management in development of an economy. This points out how reinsurance policy govern and speculate all over the world and for back as 1324 by the merchant. It as well weight the possibilities of limiting some basic problem and difficulties encountered by a state or firm during a re-insurance policy making. It as well contribute towards the up-brining of re-insurance policy within Nigeria. It also connect so many question and answer which includes the effect which re-insurance policy plays within an open market and some other recapitalization exercise. It as well weights both the merit and demerit of insurance exercise within an open market. So the methodology applied here consists of several outfits such as the primary and secondary data collection mechanics. It ensures mot proper lasting formulae hypothesis.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Insurance can simply be defined as a means of spreading risks. This idea started as far back as 1324 by the merchant who are prepared to share their risks of voyage in return for the premium paid. Firstly, it started with cargo owners arrive safely there will be no payment but if not, the insurer will pay double the amount of the premium to the cargo owner.
The development of the idea brought about on increase in the volume of the business which make individual insurer unable to be insured. Then the idea of re-insurance. However, it should be noted that insurance started on an individual basis, but the increasing volume of business in the seventieths century quickly brought about the specialization of some merchant who become the first professional insurer.
The bedrock of this study is the mathematical analysis and management of reinsurance in the development of the economy. The risk retention levels within a particular economy will depend on the size and structure of the reinsurance market. Also inflation had a great effect on the demand and management of re-insurance, increase in the potential size of exposure endangered by inflation requires exams to the additional capacity from the reinsurance market.
1.2 STATEMENT OF PROBLEM
The reinsurance practices in Nigeria are faced with some problem such as the followings:
– Lack of stable legal and regulating environment
– Poor market environment
– Poor technological environment
– The inadequate capitalization of reinsurance companies in relation to the size of the risk exposures requiring cover
– The shortage of specified underwriting and claim personnel.
– Lack of statistical data which to base premium rate in reinsurance business.
1.3 OBJECTIVE OF THE STUDY
This research work is set to achieve the following objectives.
- To determine the level of qualified personnel in reinsurance industry.
- To evaluate the performance of reinsurance company in Nigeria
- To determine the contribution of the reinsurance industry to the economic development in Nigeria
- To ascertain the role of the acturist in the development of reinsurance business in Nigeria
- To examine reinsurance as the pillar of insurance business and practice in Nigeria.
1.4 SIGNIFICANCE OF THE STUDY
The study will enable groups, such as insurance companies, reinsurance companies, government and the public at large to be very much aware of the above problem and how to handle them.
When hose problem are dealt with, it will improve effectiveness of reinsurance practice in Nigeria. Government agent as lawmaker can use this work in making rules and regulations guiding insurance companies with those solutions the reinsurance will know how to handle the problem of the industry. They can also use this research to effect and perform adequate roles in the economic development. This research could also contribute to the economic growth of the country.
Lastly, the research will benefit the public as a whole because there would be cordial relationship between reinsurance and insurance companies which will facilitate claim settlement.
1.5 RESEARCH QUESTIONS
- What are the effects of various Act of decree on the reinsurance industry?
- What is your opinion on reinsurance market in Nigeria in terms of development?
- How can quality of service offered by reinsurance companies in Nigeria be assessed?
- Does the actuarist have any role to play in the development of reinsurance business in Nigeria?
- What are the effects of recapitalization exercise in Nigeria reinsurance industry?
1.6 THE SCOPE AND LIMITATION OF THE STUDY
The scope of this research work is to know the actuarist analysis of Nigeria reinsurance management in the development of the economy. The researcher will focus on obtaining some information from the continental reinsurance company in Lagos, Abuja and Port-Harcourt but due to time factor and some other setback the researcher will only concentrate on the continental reinsurance office at Okpara Avenue, Enugu State.
As is every research work there are some factor that limit the research work which include:
- Time: Time is the greater enemy of man, mostly to a worker and a student researching on the internet, libraries etc.
- Inadequate Data: Reinsurance business is not common in Nigeria, much work have not been done on the area.
- Money: It is a problem to everybody, to a student and to a worker, researches involve a lots of money for photocopying going to the internet and typing cost.
- Bureaucracy: The problem of getting some relevant information from the reinsurance company because some document are classified as confidential.
1.7 DEFINITION OF TERMS
REINSURANCE: It can be defined as insuring a risk that has been already insured. It is the process of whereby primary insurer usually referred to as the ceding company give part of the business which it has accepted, to another insurer called the reinsurance.
ACTUARISTS: A highly specialized mathematician professionally trained in the risk aspect of insurance whose function include the calculation involved in determining proper insurance rates.
UNDERWRITING: This is the process of assessing a risk to know whether to accept or decline and if to accept at what premium conditions.
REINSURANCE: This is the people that specialize in reinsurance business.
CEDING COMPANY: This is the insurance company that accepts risks direct from the insuring public and reinsured all or part of the risk with a reinsurance company.
GUARANTEE: It is a document issued by reinsurance to a ceding company as an evidence of a complete and finding contract.
TREATY: May be defined as an agreement that exist between the ceding company and the reinsure, whereby the original company or the ceding company agree to cede while the reinsure agrees to accept all reinsure offered within the available limited of the treaty.
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