Introduction
1.1 Background Of The Study
This research work will first look into insurance is all about; insurance as a risk management device is, therefore a contract to the economic well-being of man. It is also endemic in any society as a way of averting and ameliorating the financial consequences of misfortune has been engaging the attention of man at every age. Before the advent of the British Merchant in Nigeria, there was no organized insurance business as we know it today. There has been some existed traditional system of risk sharing, which could be described as crud or primitive forms of mutual and social insurance schemes.
The extended family system, age-grade association, town union were some mutual insurance like schemes for showing benevolence to their members who had suffered some misfortunes such as death, ill-health, fire ravage or court case. Both the extended family system and clan or town union still exists in Nigeria today, but most of their insurance function ahs been taken over by an organized insurance system. Similarly, the age grade system still plays on important role in some parts of the country, especially in matters relating to moral development, but like the extended family system and clan unions, they no longer render any noticeable insurance servicers to their members.
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