ANALYSIS OF THE STRATEGIES FOR ENHANCING THE PATRONAGE OF INSURANCE SERVICES IN NIGERIA

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ABSTRACT

This research work examined the analysis of strategies used for enhancing the patronage of insurance services in Nigeria. The method used for the study was observation, primary and secondary data which was used to analyze and test the hypothesis, while chi-square (x2) was used as a statistical tool to test the hypothesis and significance of the individual estimate. The finding of the research shows that marketing can be used as a strategy for enhancing the patronage of insurance services. Therefore, the researcher recommend that price of insurance products should be moderated in such a way that low income earner will be convenient to purchase, secondly the settlement of genuine claims should be seriously taken care by insurance and prompt attention should be given to potential buyers.

 

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

In Nigeria today, and within the last few years there have been a phenomenal growth in the number of insurance companies offering dynamic service in response to consumers’ needs or wants.

Some are the days when charges was isolated in frequently and limited some structural changes and this may brought about effective insurance marketing strategies.

Insurance is more than production and selling of goods and services, there are need to satisfy the needs of consumers, identifying such needs and seeking to these needs efficient and qualitatively to the final .consumers marketing therefore enhance in totality by identifying consumers wants planning and developing of product or services to satisfy these wants determining the best way to price. Promotion and distribute the product or service to the consumption point and provide after sales service.

J.O. IruKwu (1990) state that in spite of the positive role played by insurance in social and economic development of our country, the industry does not enjoy a good public image.

He continue that members of the public have little faith and confidence in the industry they believe, quite often I mostly, that insurer are always eager to collect relevant premium but most relevant in settling the claims and they maintain that, most insures will take advantage of any loophole in the insurance contract, to repudiate liability and to refuse to settle a genuine claims to ensure that the industry.

Osoka(1992) stated that to ensure that the insurance service meet the stiff competition ahead, it is necessary for practitioners to adopt more innovative marketing strategies that will be attractive to the consumers.

Not only is the Nigeria populate setting more educated, it is a setting more aware and sophisticated. This in effect means that there is need for insurance companies to ensure that policies are well packaged in terms of contents and attractive policy wording should be simplified and well-illustrated to make for easy rending.

Resources should also be directed towards public relations and sales promotions, advertising, prompt claim settlement, education, staff orientation and enlightenment to increase the awareness and benefits of insurance to the society.

The time has come for insurers to satisfy the needs and expectations of consumers with their products. What is required is a crop of highly skilled and knowledgeable sales representatives, who will identify the insurance and well packaged policy.

In any event, insurance industry has arrived at a point when it just has to enlist the service of specialized public relations professionals to promote its products and services at company and industry levels in order to ensure good and sustained public image.

Based on the foregoing, the research work is aimed at appraising the strategies for enhancing the patronage of insurance business in Nigeria.

STATEMENT OF PROBLEM

The purpose of this section of the researchers work is to identify those factors which are related to the problems that caused or hinder the growth or patronage of insurance companies in Nigeria. Some of these problems identified which shall also be used in this research work include:

  1. The problem of fraud by insurance managers.
  2. The issue of poor settlement of claim.

iii. Poor awareness of the activities of insurance to the public.

  1. Inadequate product development technique.
  2. Inefficient and unqualified manpower.
  3. To recommend ways of improving the use of patronage.

OBJECTIVE OF THE STUDY

The basic objective of this study is to investigate into the strategies for enhancing the patronage of the insurance industry. The objectives include the following;

1) To examine the extent to which fraud by insurers has affected the image of the insurance industry.

2) To measure the effect of patronage on organizations sales growth.

3) To examine the role of inefficient claim settlement on the image of the industry.

4) To find out whether inadequate and inefficient of manpower has not contributed to its fallen image.

5) To ascertain whether the activities of intermediaries have affected the image of the industry.

RESEARCH QUESTIONS

The following research questions shall be used in the research work.

  1. How does prompt settlement of genuine claims improves on a company’s patronage?
  2. In what effective way can insurance company play to improve their services and product in Nigeria?

iii. Why would you consider effective strategies as necessary for enhancing the patronage of insurance services?

  1. How does a fraud activity by insurance managers affect its patronage in the society or community?
  2. What effective way can insurance companies play to improve the services provided in Nigeria?

RESEARCH HYPOTHESIS

The hypothesis to be used in this research work is stated in the “Null” and “Alternative” Form. they are as follows:

H0:  The business of insurance and its activities do not contribute to the patronage of insurance service in Nigeria.

H1:  The business of insurance and its activities contribute to the patronage of insurance service in Nigeria.

SIGNIFICANCE OF THE STUDY

This study will be relevant to the insurance industry students and the general public. To the industry, awareness on the role and relevance strategies to the effective discharge and success of insurance business will be created. In this respect, the need to analyze strategies is to discharge their duties to the society or public.

Moreso, the role plays, to enhancing the patronage of insurance service in Nigeria.

The students will benefits as this work adds to the existing literature, and sources of reference for future research.

To the general public, the various roles play by insurance or companies will be exposed. This is with intention of causing the insure more, thereby increasing the volume of business that may need for enhancing the patronage of insurance service cover.

SCOPE OF THE STUDY

This study has a scope which will be limited to the examination of the various roles of insurance plays for enhancing their patronage in Nigeria. The study will among other thing strategies of insurance company for enhancing the insurance services in Nigeria.

LIMITATION OF THE STUDY

To carry out a research of this nature, the researcher was constraints with the following limitation, which are mention below:

  1. Insufficient funds and limited time was a stumbling block in carrying out this study.

DEFINITION OF TERMS

  • INSURANCE: It is simply means an agreement between two parties, the “insured” and the insurer whereby the insure pay a fee called premium, on the promise that the insured shall be indemnified or compensate upon the occurrence of the insured loss or event.
  • ANALYSIS: This is the detailed study or examination of something in order to understand more about it.
  • EFFECTIVE: This simply means something that work well and produces the results that were intended.
  • PRODUCT: It is anything that is capable for satisfying a need, want or demand and this include service.
  • PATRONAGE: This is the act of providing approval and support.
  • STRATEGIES: It is a general plan or set of plans intended to achieve something in future, especially over long period.
  • MARKETING: This is the total system of business activities designed to plan, promote and distribute want satisfying goods and services to present and potential customers.
  • PREMIUM: This simply means an amount of money paid by the insurance to the insurer for the insurance cover provide in the policy.liabilities faced by the institution:

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