Table of Contents
Abstract. 2
CHAPTER ONE.. 5
INTRODUCTION.. 5
1.1 Background to the Study.. 5
1.2 Statement of the Problem... 7
1.3 Objectives of the Study.. 8
1.4 Research Questions. 8
1.5 Research Hypothesis. 8
1.6 Significance of the Study.. 9
1.7 Scope of the Study.. 9
1.8 Limitations of the Study.. 10
1.9 Organization of the Study.. 10
CHAPTER TWO.. 12
REVIEW OF RELATED LITERATURE.. 12
2.1 Introduction.. 12
2.2 Theoretical Review.. 12
2.3 Conceptual Review.. 14
2.4 Empirical Review.. 18
2.5 Summary of Literature Review.. 20
CHAPTER THREE.. 21
RESEARCH METHODOLOGY.. 21
3.1 Introduction.. 21
3.2 Research Design.. 21
3.3 Population and Sampling Techniques. 22
3.4 Data Collection Methods. 22
3.5 Research Instruments. 23
3.6 Validity and Reliability of Instruments. 24
3.7 Data Analysis Techniques. 24
3.8 Ethical Considerations. 25
3.9 Limitations of the Study.. 25
3.10 Conclusion.. 26
CHAPTER FOUR.. 27
DATA PRESENTATION, ANALYSIS AND RESULTS.. 27
4.1 Socio-Demographic Characteristics of Respondents. 28
4.2 Analysis of the Respondents’ Views on Research Question one: 31
CHAPTER FIVE.. 44
SUMMARY CONCLUSION AND RECOMMENDATION.. 44
5.1 Summary of Findings. 44
5.2 Conclusion.. 44
5.3 Recommendations. 45
Future Research Directions. 46
REFERENCES.. 46
Questionnaire: THE USE OF INSURANCE TO PROMOTE SOCIAL WELFARE IN NIGERIA (A CASE STUDY OF AIICO INSURANCE) 49
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Insurance plays a pivotal role in promoting social welfare in Nigeria, serving as a mechanism to mitigate risks and provide financial security to individuals and businesses. With a population facing various socio-economic challenges, insurance offers a safety net against unforeseen events such as illness, accidents, and natural disasters. Moreover, insurance encourages savings and investment, contributing to the overall economic development of the country. Through its diverse range of products and services, insurance fosters resilience and stability in communities, ultimately enhancing their social welfare.
In Nigeria, the utilization of insurance for social welfare has gained increasing recognition and attention from policymakers, researchers, and industry stakeholders. Various studies have highlighted the positive impact of insurance on poverty alleviation, healthcare access, and education. For instance, a study conducted by Oseni and Aduloju (2018) emphasized the role of microinsurance in improving the financial inclusion of low-income households, thereby enhancing their social welfare. Similarly, research by Okoye (2020) demonstrated how health insurance schemes contribute to better healthcare outcomes and increased productivity among Nigerians.
Furthermore, the Nigerian government has implemented several initiatives to promote the use of insurance for social welfare objectives. The National Insurance Commission (NAICOM) has introduced regulations and policies aimed at expanding insurance coverage and ensuring consumer protection. Additionally, collaborations between the government, insurance companies, and non-governmental organizations (NGOs) have facilitated the design and implementation of targeted insurance programs for vulnerable populations. These efforts align with the Sustainable Development Goals (SDGs), particularly Goal 1 (No Poverty) and Goal 3 (Good Health and Well-being), highlighting the integral role of insurance in achieving broader societal welfare objectives.
As Nigeria continues to navigate socio-economic challenges and vulnerabilities, the role of insurance in promoting social welfare remains paramount. By addressing risks, enhancing financial resilience, and fostering inclusive growth, insurance contributes significantly to the overall well-being and prosperity of Nigerian society. With ongoing research, policy innovation, and collaborative efforts, the potential of insurance as a tool for social welfare enhancement in Nigeria can be further realized, ultimately leading to more resilient and prosperous communities. (References: Oseni & Aduloju, 2018; Okoye, 2020; National Insurance Commission, NAICOM) [Date: May 4, 2024]
1.2 Statement of the Problem
In Nigeria, the utilization of insurance as a tool to bolster social welfare remains a pressing concern. Despite the potential benefits that insurance schemes could offer in mitigating socioeconomic risks and enhancing the well-being of citizens, significant barriers hinder their effective implementation. One prominent challenge lies in the lack of comprehensive understanding and awareness of insurance products among the populace, particularly in rural and underserved communities. This knowledge gap often leads to low uptake rates and limited access to essential insurance services, perpetuating vulnerability to financial shocks and hindering long-term socio-economic development (Oviawe & Okorie, 2019).
Furthermore, the existing regulatory framework in Nigeria presents complexities that impede the optimal functioning of insurance mechanisms geared towards social welfare. Insufficient regulatory oversight, coupled with bureaucratic inefficiencies, contributes to a fragmented insurance landscape characterized by inconsistencies in coverage, pricing, and accessibility. Moreover, issues of trust and transparency within the insurance industry pose formidable obstacles, undermining public confidence and hindering efforts to promote widespread adoption of insurance as a means to safeguard against social risks (Ike, 2020). Addressing these systemic challenges requires a multifaceted approach that involves not only regulatory reforms but also targeted educational initiatives and community engagement efforts to foster a culture of risk management and resilience.
1.3 Objectives of the Study
The main objective of the study is to examine the use of insurance to promote social welfare in Nigeria. Specific objectives of the study are:
- To assess the effectiveness of existing insurance schemes in promoting social welfare.
- To identify potential challenges and opportunities for using insurance to expand social welfare coverage.
- To analyze the role of public policy and regulation in promoting social welfare through insurance.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- To what extent do current health insurance programs improve access to healthcare for low-income Nigerians?
- What are the main barriers to insurance penetration among low-income populations in Nigeria?
- How can government policies incentivize insurance participation for low-income individuals and informal workers?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no significant relationship between the use of insurance and the promotion of social welfare in Nigeria.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Insurance sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to AIICO Insurance. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
