Problems and Prospects of Extending Insurance Services to the Rural Areas A Study of Oba in Anambra State

Problems and Prospects of Extending Insurance Services to the Rural Areas

Project / Seminar Material
Reference ID: PS-8122-TM

DEDICATION

This research material titled “Problems and Prospects of Extending Insurance Services to the Rural Areas” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Insurance, Book Authors and Profound Scholars of existing or related project material on “Problems and Prospects of Extending Insurance Services to the Rural Areas” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

Problems and Prospects of Extending Insurance Services to the Rural Areas (A Study of Oba in Anambra State)

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

  • 1.0 Introduction
  • 1.1 Background of the study 1
  • 1.2 Statement of problem 3
  • 1.3 Objective of the study 4
  • 1.4 Research question 5
  • 1.5 Research Hypothesis 5
  • 1.6 Significance of the study 7
  • 1.7 Scope and Limitation of the study 7
  • 1.8 Definition of terms 7
  • REFERENCES 10

CHAPTER TWO

  • Review Of Related Literature
  • 2.1 Historical development of insurance 11
  • 2.2 The role that insurance plays in the life of a nation. 12
  • 2.3 What are the reasons for the lack of insurance culture13
  • 2.4 Insurance in the eye of the public 18
  • 2.5 The task facing insurance companies 19
  • 2.6 Creating awareness of insurance to the rural dwellers 21
  • 2.7 Challenges facing the insurance industry 22
  • 2.8 Step to create relevance insurance in the rural areas 23
  • 2.9 Insurance policies mostly needed by the dwellers 25
  • 2.10 Problems of extending insurance services in the rural areas. 28
  • 2.11 Prospects facing effecting services of insurance to the rural areas 31
  • 2.12 Benefits of insurance to the rural dwellers 32
  • Reference 34

CHAPTER THREE

  • Research Methodology And Design
  • 3.1 Research Design 35
  • 3.2 Area of the study 35
  • 3.3 Sources of data 36
  • 3.3.1 Primary data 36
  • 3.3.2 Secondary data 36
  • 3.4 Population of the study 36
  • 3.5 Sample size and sample techniques 37
  • 3.6 Reliability of the instrument 38
  • 3.7 Validation of the instrument 39
  • 3.8 Method of data analysis 40

CHAPTER FOUR

  • Data Presentation And Analysis
  • 4.1 An overview 41
  • 4.2 Presentation and analysis of data 41
  • 4.3 Testing of Hypothesis 55

CHAPTER FIVE

  • 5.0 Summary of findings, conclusion and recommendation 65
  • 5.1 Summary findings 65
  • 5.2 Conclusion 67
  • 5.3 Recommendations 68
  • BIBLIOGRAPHY 70
  • APPENDIX i 71
  • APPENDIXii 72

ABSTRACT

The interest to write in this particular topic “Problems and Prospect of Extending Insurance Services to the rural areas” grow out of the present significant roles of insurance industry in extending service to the rural areas. The researcher discovered that the problems facing the extension of the service to the rural area by the industry is poverty, illiteracy and geographical locations. However, the objectives was to examine whether insurance companies extends service to the rural areas or not and if not, to identify the problems and prospects in providing insurance service to the rural areas.

The scope of the study was limited to Oba in Anambra state as yardstick to other rural areas in Nigeria and leadway Assistance Co. Ltd to represent other insurance companies due to lack of time. Therefore, data interpretation gave the following findings that insurance industry should provide services to the rural dwellers that apathy and ignorance for insurance service hinder the extension of service to the rural people. This findings also recommended that all the insurance companies should start extending services to the rural areas and also assist in providing social economic activities

Problems and Prospects of Extending Insurance Services to the Rural Areas (A Study of Oba in Anambra State)

CHAPTER ONE

Introduction

1.1 Background Of Study

In today’s modern society, the need for extending insurance services to the rural areas by the insurance industry is of a great important. The insurance industries which part of financial institution exist for the purpose of indemnifying an insured in the case of any loss occurrence. Furthermore, the insurance industry in Nigeria and has not been accepted by its people as to take its rightful place in the nation’s economy.

The importance of the provision of insurance services has been recognized in modern Nigeria, through the various products offered by insurance firms, which are life assurance policies that is classified into individual life assurance, group life assurance and pension, and health insurance business while general insurance business like fire, marine, motor insurance business etc are offered to the consumers of insurance products who are individuals, social clubs, unions association etc.

However, products offered to these groups/ person(s) are for protection against losses incurred by them and keeping them in business. Similarly, it is a fact that the major problem facing the growth and development of the industry in Nigeria today is ignorance an apathy for insurance services in the country. For this purpose, business concerns which is also very peculiar to the rural dwellers who are not easily accessible due to geographical factors and lack of infrastructural facilities in the rural areas of the country.

Hence, the rural dwellers are mostly engaged in small medium scale activities such as subsistence forming, fishing, palm wine tapping, hunting e.t.c. which they may find difficult to buy insurance protection for their benefits against losses that might arise in the course of their daily activities.

Thus, poverty and high rate of illiteracy which is a real factor limiting against the development and growth of the industry in the rural area. In the essence, the industry should do well to solve the inherent difficulties faced by the rural dwellers in finding ways and means of taking insurance services to them at affordable prices(premium) increase their performance, efficiency and profitability by embarking on awareness campaigns and creating of good wills. Similarly, new products should be developed to suit their needs so as to attack and stimulate participation from the rural dwellers and to settle claims as at and when due with equity, modesty and quick response without prejudice.

1.1 Statement Of The Problems

The following are the statement of the problems:

Rural areas do not know what is insurance; talk of insuring their risk. Poverty and high rate of illiteracy which is a real factor against the development and growth of the industry in the rural areas, lack of trained personnel lead to the unavailability of trained personnel who would work in local areas where the prospective insured dwells. Lack of adequate infrastructure lead to the absence of transportation and communication, also affect the extension of insurance services to the rural dwellers.

Ignorance and apathy to insurance services also bring about the high level of ignorance even among the so-called educated class and the meaning of insurance which is yet to be comprehended and by extension to the rural dwellers has affected the demand for insurance.

1.2 Objectives Of The Study

The objective of the study is to evaluate the performance of the Nigerian Insurance Industry in the extension of insurance services to the rural areas. The main objective of this work is to:

  1. To find out whether the insurance companies extend services to the rural areas or not.
  2. To find out why the insurance industry has not been accepted by the rural dwellers.
  3. To evaluate the causative factors of these problems and to provide possible solutions.
  4. To determine whether geographical factors and lack of infrastructural facilities affect the location of insurance companies in the rural areas.
  5. To find out the reason for lack of insurance culture and to offer strategies for developing insurance culture in the rural environments.
  6. To make useful recommendations based on the finding and then give possible solution to it.

1.3 Research Questions

In the cost of this research, certain research questions were generated to guide the researchers in their findings.

  1. Apathy and ignorance for insurance services hinder the provision of insurance services to the rural areas.
  2. Special packages at affordable price (premium) would attract participation from rural dwellers.
  3. Poverty and illiteracy limit factors against the development and growth of the industry in the rural areas.
  4. Geographical factors and lack of infrastructural facilities limit the extension of insurance services to the rural areas.
  5. Prompt payments of claims encourage the acceptance of insurance services by the rural dwellers.
…

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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