Introduction
1.1 Background to the study
Insurance businesses are today much more concerned about the effect of competition than they were a few years ago. They must react to the competitive threats not only from local source but also from regional, national and international source; likewise they must seek to explore all opportunities that are available in the immediate, national and Global environment. Deregulation has also increased competitive pressure for insurance organizations to survive, grow and prosper. In such a competitive environment, insurance managers must employ a lot of the resources at their disposal as efficiently as possible so as to accomplish the objectives and goals of the enterprise. Management Information System provides information in form of reports and displays to insurance managers and many business professionals (Munirat, Sanni and Kazeem, 2014).
Management Information System takes into account integrative nature of information flow as well as the structuring of the organization around decision centers. Standards of performance are part of any good plans; hence, determination of standards like other aspects of the planning process depends on the availability of relevant management information system. Management information system aids the functioning and monitoring of an insurance organization. It also describes the components and resources to ensure the proper functioning of insurance.
Management information system has changed the physical layout of offices to accommodate local networks and departmental integrated systems. It is also a formalized procedure to provide management at all levels and in all functions with appropriate information from all relevant source to enable them make timely and effective decisions for planning, directing, evaluating, and controlling the activities for which they are responsible for (Munirat, Sanni and Kazeem, 2014).
Moreover, the potential of management information system to provide firms competitive advantage has been a topic of interest to both practitioners and academicians over the last five (5) decades. This interest is reflected in the large number of studies that have examined the strategic value of performance of management information system and its impact on firm performance. This attention to performance of management information system stems from the fact that insurance organizations often make significant investment of time and financial resources in the acquisition of information technology and its services in recent times (Oladipo, 2012).
The role of information in decision-making among insurance practitioners cannot be overemphasized; and effective decision-making demands accurate, timely and relevant information. As the numbers of employees, customers and transaction increases in an organization the more it become multifaceted, and the information needed for effective management, planning, decision-making and control invariably becomes more complex (Olumoye, 2013).
In the context of insurance, decision-making is the task of every top management in the industry and they need relevant and timely information to assist in taking decisions. According to Lucey (2005), relevant information increases knowledge, reduces uncertainty and is usable for the intended purpose. However, there are difficulties in producing relevant and timely information among most organizations in Nigeria and the insurance industry is not exempted. Hence this study seeks to explore the impact of performance of management information system (MIS) on the insurance industry in Nigeria.
1.2 Statement of the study
According to Barry (1988) information is a generic term, because it has been described as the livewire of any enterprise (public, private, local firm, Multinational company, manufacturing, merchandise, and franchise business, retailing stores, multiple chain stores or service oriented organization). It provides the relevant concept and intelligence to enable the right thing to be done at the right time.
In today’s insurance business, there is growing need for information. The necessity for information increases on daily basis and thus becomes more complex in nature. And as business keeps growing the management, staff and other users of information within and outside the organization continues to depend and demand for information to support the management duties and operations of the business.
This information required should be accurate, timely and aimed at the correct recipients. In view of this the researcher attempt to establish what information systems connotes and the significant relationship between information systems and management decision. The management is also becoming increasingly aware that information system can be used to produce meaningful information on which they can base their decisions in addition to performing the detailed paper work functions of the organization.
1.3 Objectives of the Study
The primary aim of the study is to examine the impact of performance of management information system on the insurance industry in Nigeria. Other specific objectives shall include:
- To examine the effects of information systems on management decision-making in the insurance sector.
- To assess the significant relationship between information systems and management decision.
- To understand the relationship between information systems and staff strength.
- To carry out an investigation if information system provide relevant, timely and accurate information for effective decision-making.
- To investigate if management performance increase with information systems?.
- To find out if information systems speed up decision-making in the insurance operations?
1.4 Research questions
This study identifies several research questions which are the main objectives this paper:
- What are the effects of information systems on management decision-making in the insurance sector?
- Is there any significant relationship between information systems and management decision?
- Is there any significant relationship between information systems and staff strength?
- Does information system provide relevant, timely and accurate information for effective decision-making?
- Does management performance increase with information systems?
- Does information systems speeds up decision-making in the insurance operations?
1.5 Research Hypothesis
In order to proffer solutions to the research questions, the following hypotheses were formulated and tested to guide the research work:
Hypothesis 1
- H0: There is no significant relationship between information systems and management decision
- H1: There is significant relationship between information systems and management decision.
Hypothesis 2
- H1: Information systems does not provide relevant, timely and accurate information for effective decision-making
- H0: Information systems provide relevant, timely and accurate information for effective decision- making
1.6 Significance of the study
The term information system is a scientific field of has been a topic of interest to both practitioners and study that addresses the range of strategic academicians over the last five (5) decades. This managerial and operational activities involved in interest is reflected in the large number of studies gathering, processing, storing, distributing and use that have been examined the strategic value of information and its associated technologies in the societies and organizations.
Information systems are achieving competitive advantage in the market used to manage the information/data created within place remains a subject of contention in the and without the structure of a particular insurance industry and national economy of organization. These systems are vested with the Nigeria. This study will also be of importance to academics and researchers that would want to carryout research related to that of this study.
1.7 Scope of the study
The study critically examined the impact of management information system (MIS) on the insurance industry in Nigeria.
The study focused on five insurance companies in Nigeria namely: Great Nigeria Insurance Plc, Nigerian Agricultural Insurance Corporation, Nigerian Reinsurance Corporation, Union Assurance Company Limited and Unity Capital Insurance Plc.
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