LOCAL CONTENT AND GROWTH OF NIGERIA RE-INSURANCE AN OVERVIEW

ABSTRACT

This study evaluate the expected impact local content on the growth and development of reinsurance in Nigeria. The historical, problems and challenges facing the growth and development of reinsurance business in Nigeria. The prospect efficient and affective management of reinsurance industry. Hence, the concept of local content in oil and gas reinsurance business stating the details, importance and problems of local content to the Nigeria reinsurance companies, the expected impact of local content of economic development of the reinsurance business. However, the data used in this study were collected from two  sources primary and secondary data. A liker scaling questionnaire was the major instrument used in ascertaining basic information in the research work. The descriptive survey method was used to analysis data collected  for the study. Z – test statistical model was used in testing hypothesis and other response form the respondents and yaros yama sampling technique was used to determined the sample the test conducted, conclusion was made on the findings of the study includes: there is reasons for reinsurance on the growth and development of Nigeria economic. Recommendations were made in respect of the problems facing reinsurance in Nigeria. Suggestion was also made for further study. All these are contained in chapter five, different chapters with reference at the end of each.

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

Risk is integral to everyday life. Once we have said that risk is always at the center of our life. This means that for every human endeavour, there is risk as a result of our difference provision according to David (2001), risk exist where the future is unknown. It represents both desirable event when one intentionally initiates certain thing in order to better as socio-economic wellbeing. “Because of these desirable and undesirable events. It is a desirable event when one intentionally initiates certain things in order to better his socio economic wellbeing. Because of these desirable and undesirable events, an organization will want to transfer their risk to an insurance company, which thereby brings about risk survey.

According to David (1989), the prince object of a risk survey is to provide the underwriter with as complete as positive of risk being offered as possible, to enable  him decide whether the risk was acceptable and how it compared with the same kind as the basis for deciding premium and other terms.

In the present day, the survey is still closely concerned with provision of underwriting information and in many situations the information disclosed by the complete proposal form, will need to be supplemented by a surveyors reports before the picture is completed. However, the surveyors is now more closely concerned with audient previous, surveying represents one aspect of the wider subject of risk control. Moreover, practice varies among individual insurers and there are no established criteria for surveying manufacturing firms. It may safely be stated that risks of unusual character or with special features will normally be surveyed in that firm. A safety or risk audit will be conduct.

A safety audit is a critical examination of an individual operation in it, entirely to identify potential hazard on level of risk. Audits are often undertaken by multi-disciplinary terms. Individual member should have a good knowledge of legal requirements, an understanding of reasonable practice in the industry and above all the ability to communicate with all levels of personnel or departments within the organizational. In many companies, this expertise is not readily available and so audits tend to be undertaken by external specialist such as consulting engineers acting independently or employed by insurance companies. In manufacturing firms like Emenite Limited, risk that presents a serious injury/hazard is those where there is substantial involvement machinery. Reports from the health and safety executive in Emenite Limited. However, show that save 80% of accidents are not caused by machinery buy by such simple things as falls lifting heavy weights or defectives hand tools.

Risks survey will thereby go a long/greater way in boosting productivity in manufacturing firm via review of risk and it will also help to facilities improvement in the work force of the company like Emenite Limited.

1.2       STATEMENT OF PROBLEM

Manufacturing firms are exposed to various risks as result of the native of their activities in production of their products. So the roles of risk survey cannot be over emphasized in the manufacturing firms because risk survey plays huge role in sustaining the growth and survival of the manufacturing firms in Nigeria. Nwite (2007) man’s inability to accurately predict the outcome of this undertaken, the consequences of this action or inaction portray the native of man as being finites and faller. As a result, risk becomes inevitable incidence in our day to day activities. For the purpose of this study, the researcher identified some key factors that will help in identify the problem.

a.           There are various risk exposure in manufacturing firms.

b.          The way of handling such risk exposures have not been encouraging.

c.           Risk surveyors in manufacturing firms have not been living up to their expectations.

d.          There have been lots of bottlenecks in implementing the proffered recommendations.

e.           To know role of surveys in identifying such risk and controlling the affects in the operation of manufacturing firms in Nigeria.

1.3 OBJECTIVE OF THE STUDY

The objectives of this study is to fluid out various risks confronting manufacturing firms in Nigeria and the firm of risk surveys in identifying such risk exposures and the adverse effects in the manufacturing firms. Therefore, the objectives of this study are as follows:

a.           To find out the various risk exposure to manufacturing firms in Nigeria.

b.          To find out various ways of handling such risks exposure in manufacturing firms.

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