MAKING INSURANCE COUNT: THE ROLE OF SOCIAL MEDIA

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ABSTRACT

This research work was aimed at evaluating the extent to which social media can help in making insurance count in Nigeria.  This study was guided by the following objectives; to focus the attentions of the Nigeria insurance companies on customers satisfaction using the social media and to find out the use of social media in tackling various image problems facing the insurance industries in Nigeria. In order to achieve this objective, data were gathered from a designed questionnaire administered on (90) respondents, also organized interviews were carried out. It was discovered that the role of social media in making insurance count in Nigeria would have a positive effect on the insurance industry and the public. Based on the findings and conclusion s arrived at, it was recommended that social should be used by the insurance companies in Nigeria to have a quick and better transactions, and also to help the insurance companies experience growth and profit maximization in the marketing of their services. Summary and conclusion were made from its findings and was recommended that insurance industries should use social media to improve the insurance  business and help to reduce the major problems that insurance faces in Nigeria, which is bad reputation (insurance not counting in Nigeria).

 

TABLE OF CONTENT

 

TITLE PAGE       i

CERTIFICATION         ii

DEDICATION     iii

ACKNOWLEGEDMENT       iv

ABSTRACT        v

TABLE OF CONTENT vi

CHAPTER ONE  1

1.0     INTRODUCTION         1

1.1     BACKGROUND TO STUDY 1

1.2     STATEMENT OF PROBLEM         2

1.3     PURPOSE OR OBJECTIVES OF THE STUDY 4

1.4     RESEARCH QUESTIONS     5

1.5     SIGNIFINACE OF THE STUDY     6

1.6     SIGNIFICANCE OF THE STUDY  6

1.7     SCOPE OF THE STUDY       7

1.8     DEFINITION OF TERMS      7

CHAPTER TWO 9

2.0     LITERATURE REVIEW        9

2.1     INTRODUCTION         9

2.2     CONCEPT OF SOCIAL MEDIA     9

2.3     HISTORICAL BACKGROUND OF SOCIAL MEDIA 13

2.4     POTENTIALS OF SOCIAL MEDIA TO INSURANCE  INDUSTRIES   17

2.5     THE ROLE OF SOCIAL MEDIA IN MARKETING OF  INSURANCE SERVICE IN NIGERIA   19

2.6     CHALLENGES OF SOCIAL MEDIA IN THE MARKETING OF  INSURANCE SERVICE IN NIGERIA 23

2.7     BENEFITS OF SOCIAL MEDIA IN THE MARKETING OF  INSURANCE SERVICES.         26

2.7     BENEFITS OF SOCIAL MEDIA IN THE MARKETING OF INSURANCE SERVICES.          28

CHAPTRER THREE    32

3.0     RESEARCH METHODOLOGY      32

3.1     INTRODUCTION         32

3.2     RESEARCH DESIGN   32

3.3     POPULATION OF STUDY    33

3.4     SAMPLING TECHNIQUES AND SAMPLE SIZE       33

3.5     SOURCE AND METHOD OF DATA COLLECTION 33

3.6     ADMINISTRATION OF INSTRUMENT  34

3.7     DATA ANALYSIS TECHNIQUES 34

3.8     VALIDITY/RELIABITY OF THE INSTRUMENT      35

3.9     LIMITATION OF THE STUDY       35

CHAPTER FOUR         37

DATA PRESENTATION AND ANALYSIS       37

4.1     INTRODUCTION         37

4.2     DATA PRESENTATION       37

4.3     ANALYSIS OF QUESTIONNAIRE RESPONSES      37

4.4     HYPOTHESIS TESTING       40

CHAPTER FIVE 43

5.0     INTRODUCTION        43

5.1     DISCUSSION OF FINDINGS          43

CHAPTER SIX    47

6.0     INTRODUCTION        47

6.1     SUMMARY         47

6.2     CONCLUSION    48

6.3     RECOMMENDATION 48

BIBLIOGRAPHY          51

APPENDIX I       53

APPENDIX II      54

 

 

CHAPTER ONE

1.0     INTRODUCTION

1.1     BACKGROUND TO STUDY

Generally, insurance plays a vital role in the transfer of risk across all spheres of life.  The concept of insurance refers to a contract between two parties where one party promises to indemnify the other party for the occurrence of any risk covered under the contract in exchange for a monetary consideration called pre-change for a monetary  consideration called premium (Ogwo, 2010). The party who makes this promise is ordered to as insurer and 13 a limited liability company. These company also faces several risks and is not properly recognized or patronized in Nigeria and this necessitates the use of social media in making insurance count in Nigeria.

By definition an explanation, one can describe social media as a means of publishing and broadcasting information (creating awareness to the public). The social media helps to answered question such as why the insurance companies are having a good turnover, claims are being paid and the insurance company is having number of people (customers/insured) in the insurance pool. This tries to explain the role of social media towards to primary focus of the insurance companies are to have potential marketers who can strategies and develop good customer relationship. In making insurance count in Nigeria, social media has a great significance to the insurance company as it is an edge to the growth of the company. The enlargement of the insurance company depends on the strength of the marking department of the insurance industries and so if the marketing department of the insurance industries have a vast social networking system, then marketing of insurance services will be easy and marketing cost will be low. However, the situation in Nigeria seems different. Despite the existence of social media in Nigeria, insurance still does not count because of low patronage in Nigeria.

1.2     STATEMENT OF PROBLEM

The contribution of social media to the growth and development of insurance and making it count in Nigeria cannot be overemphasis. The marketing of insurance services has always being a central problem for the insurance company. A company with low level of marketing strategies tends to fail in the quest to achieve their goals. When an insurance company has an effective and efficient marketing strategy which is advertising their services through efficient tool which is the social media, then they have created awareness to the public that they are selling and thereby creating familiarity, increasing visibility and developing good customer relationship. The rite social media in making insurance count in Nigeria have not being comparatively researched. The reality is that the insurance companies for a very long time have being having a bad reputation from the insuring public and the social media can redeem the pride of the insurance company.

The major problem I have indentified is that in Nigeria, insurance companies  have been given a bad reputation with an awkward name which is “The 419 business”. The insuring public do not believe or doubt the truth which the insurers preach which is not bringing confidence to the insuring public because of some dubious, fraudulent and unprofessional insurance companies or practitioners   and also fraudulent clients. The primary objective of the social media is to help in creating awareness to the insurance public of their intension they have. Insurance in Nigeria has not taken its giant stand in playing its role in helping to develop the economy sector of Nigeria. One of the problems of insurance development in Nigeria is as a result of inadequate awareness among Nigeria public. Also, the sue of unqualified or untrained personnel in the industry that are into the market to causes the business. The ineffective and unhealthy competitions which are carried out by the management of some companies which has led to the decline and sometimes the fall of the companies have made

the public to lose confidence in the insurance  business. Thus, this study is set to determine the role of social media in making insurance count in Nigeria.

1.3     PURPOSE OR OBJECTIVES OF THE STUDY

The main objective of this study is appraising or accessing the contributions of social media in making   insurance count in Nigeria. Specific objectives include;

  1. To examine the level of emphasis placed by the insurance companies on their use of social media.
  2. To identify the perception of the public towards insurance with the use of social media.
  3. To examine the level of patronage of insurance products with the use of social media.
  4. To examine the role of social media in creating a vigorous or strong and active insurance market that helps in the marketing of insurance services.
  5. To examine the role social media plays in changing the negative perception carried by the public about insurance business.
  6. To examine how the use of social media can to profitable to the insurer’s marketers’ in marketing of insurance services.
  7. To identify how social media can help the insures to get new business .
  8. To examine how social media can help in advertising the insurance business at large to the general public.

1.4     RESEARCH QUESTIONS

The general questions guiding these study are:

  1. What are the levels of emphasis placed by the insurance companies on their use of social media?
  2. What are the things wrong with the insurance industry pertaining to the use of social media in the marketing of their services?
  3. How can insurance products be patronized with the use of social media?
  4. What are the roles social media play in creating a vigorous insurance market the will helps in marketing of insurance services
  5. How can social media help in hanging the negative perception carried y the public about the insurance business?
  6. How can the use of social media, be profitable to the insurers marketers in marketing of insurance services?
  7. How will the use of social media help the insurers get new business?
  8. How can social media help in advertising the insurance at large to the general public?

1.5     SIGNIFICANCE OF THE STUDY

For this research work the following hypothesis were formulated.

Ho: Social media cannot be used in the development of marketing of insurance service and making of insurance count in Nigeria.

Hi: Social media can be used in the development of marketing of insurance services and making insurance count in Nigeria.

1.6     SIGNIFICANCE OF THE STUDY

This study to a great extent has potentials of harnessing the position of Nigeria economy with regards to insurance. This is because business of various sorts are the main stay of any developing economy like Nigeria . thus, this project is intended to both educate the various groups like government, public, insurance companies. Educate the insurance company in the usage of social media as an important tool in the marketing of insurance services for an effective run of the insurance industry. This work will be of significant contribution to the body of knowledge in this area of study, and it will also be a reference point for future researchers.

1.7     SCOPE OF THE STUDY

This study is meant to examine the role of social media in the marketing of insurance services and making insurance count in Nigeria. However, due to limiting factors in getting information from all the insurance companies in Nigeria, the researcher has therefore limited himself to some selected insurance companies in Port Harcourt , Rivers State for effective collections of data.

1.8     DEFINITION OF TERMS

The following terms are properly defined;

  1. Services: these are intangible offering provided for another party which may or may not be paid for.
  2. Social media: a group of internet-based applications that allows for the creation and exchange of user generated content is known as social media.
  3. Marketing: marketing means, planning, coordinating and control of all activities of a company that is targeted in actual and potential markets in order to satisfy and to estimate permanent needs for customers. On the other hand, is aimed at achieving the companies objectives.
  4. Buying public: these are group of people who buy goods or uses services.
  5. Insurance: insurance is a contract between two parties where one party make commitment to indemnify the other party for the occurrence of any risk covered under the contract in exchange for a monetary consideration called premium (Olugbemi 2016).
  6. Insured: this is the person to whom benefits are payable under the policy.
  7. Indemnity: this is the restoration to victim of a loss by repair, replacement or by payment.
  8. Clients: Are customers, a buyer or receiver of goods or services.
  9. Insurer: this is the person who promise to pay (indemnify) another (the insured) on the happening of a stated event.
  10. Perception: the conscious  understanding of something (Reicheld and Sasser, 1990)
  11. Internet: any set of computer networks that communicate using the internet protocol.
  12. Image: it refer to the characteristics of a person or group or company etc. how one is perceived by others or wishes to be perceived by others.
  13. Premium: premium is an amount paid periodically to the insures by the insured for covering his risk (Isimoya, 2003).

 

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