DEVELOPMENT OF NEW PRODUCTS IN NIGERIA INSURANCE INDUSTRY
ABSTRACT
The topic of this research work is the development of new products in the Nigeria Insurance Industry, the work includes the background of the study, statement of the problems, the objective of the study, and research questions, other areas treated include the significance of the study, scope, and limitations, definition of terms.
Chapter two covers a review of related literature, historical development, and so on. Chapter three deals with research methodology, sources of data, instrument use, and so on. Chapter four covers major findings and chapter five covers conclusions and recommendations.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The insurance business is comparatively new in Nigeria, even though it has been in existence for a long time in Europe. In this regard, not much has been written about new product development in insurance. According to medium, new product development in the insurance industry is not subject to copyright they still represent an important method of stimulating the growth of the industry. Insurance products determine the competitive behavior of the insurance companies and the structure of the insurance market. The main focus of marketing activities of most insurance for customer needs.
Insurance policies or products have been categorized into two broad groups.
1. Those products/policies which provide protection;
2. Policies that provide protections and investment.
These two types of major conventional products are funded by life assurance policy.
In products/policies which provide protection the policyholder is given protection for a limited period of 10 – 15 years. A convertible term is a variation where the policyholder is given the option to convert to another type of policy at any time during the policy terms even if his death deteriorates.
Policies that provide a mixture of protection and investment include profit-participating endowment and whole life policies. To remain competitive, insurance companies have developed a large number of products. Product development means modifying the existing products or developing new ones to suit the need of the insuring public.
1.2 STATEMENT OF THE PROBLEM
The problems which are intended to be solved in this research work include the followings:
1. Development of new products has taken sometimes in the insurance industry without many results;
2. To determine the reason for the slowness of the modification of existing products and innovation;
3. To know the reason for the aggressive competitiveness of the insurance industry.
1.3 OBJECTIVES OF THE STUDY
Based on the identical problems as eh insurance industry increases, new products insurance the study to designed to:
1. To ascertain whether new products differ from old products;
2. To ascertain the level of efficiency of new insurance products;
3. To find out the major problems in the marketing of new products in the insurance industry;
4. To find out the effects of new products on the insurance industry.
1.4 RESEARCH QUESTIONS
The research questions which are pertinent to this project research include:
· Are there any need for the development of the new product in insurance?
· Do the existing products satisfy the buying needs of the people?
· Are there products that need modification or outright rejection?
· Who is responsible for the modification or development of new products in the insurance company?
· Does the re-packing of new insurance products affect the existing ones?
1.5 SIGNIFICANCE OF THE STUDY
The research work will be of immense benefit to the following persons:- The research work will provide a source of reference for current and future insurance. Statisticians or historians who would wish to use the volume of published data in the insurance industry.
The insurance public will find this research work useful as it highlights the effect of introducing new insurance products into the insurance market.
Furthermore, this study will widen the knowledge of students who may embark on future research on product development. Finally, this research work will create awareness in the general public (country) and educate them on the use of new insurance products.
1.6 THE SCOPE AND LIMITATION OF THE STUDY
Scope
The study focused attention on the new product development in three insurance companies based in Enugu selected randomly.
Limitation
In het course of this study, the researcher encountered many obstacles among which are time, lack of funds, and so on. The time allows to write this report was too short and it cut time for other academic activities.
The lack of funds prevents the author from traveling to many places to source materials. Research materials were other problems. Poor response from the respondents is another problem. Many of the staff met feared that if they give full information their employer might victimize them.
Do You Have New or Fresh Topic? Send Us Your Topic
1.7 DEFINITION OF OPERATIONAL TERMS
1. Claims: This is the demand made by the insured for payment of benefits following a loss.
2. Fraud: An unlawful means of acquiring the financial advantage at the expense of others.
3. Insured: A person or persons named under an existing policy as being covered by insurance.
4. Under Writing: This is an assessment of a risk to know whether it will be acceptable or not.
5. Moral Hazard: The bad moral behavior of an individual.
6. Policy: An evidence of insurance contract.
7. Premium: The consideration which the policyholder pays for being covered under an insurance contract.
8. Double Insurance: Where two or more policies are affected by or on behalf of the insured on some adventure.
9. Liability: A situation under which a person is made to pay for a certain thing whether voluntarily or by the force of law.
10. Warranty: A condition in a policy that states expressly or impliedly the circumstances under which an insured can be compensated under a policy.
DEVELOPMENT OF NEW PRODUCTS IN NIGERIA INSURANCE INDUSTRY
INSTRUCTIONS AFTER PAYMENT
- 1.Your Full name
- 2. Your Active Email Address
- 3. Your Phone Number
- 4. Amount Paid
- 5. Project Topic
- 6. Location you made payment from