CHAPTER ONE

1.0 INTRODUCTION
1.1 GENERAL OVERVIEW OF THE STUDY
The uncertainty which doubt the future is a significant that normally bring in the element of risk in any business arrangement. The existence of risk in any concern simply means that certain loss must arise if the risky event happens. A contract of insurance broadly happens. A contract of insurance, broadly speaking is a contract in which one party called the insurer agrees to pay a given sum of money upon the happening of a particular event insured against to the other party called the insured or assured for a consideration called premium.
In other words, insurance is a risk transfer mechanism by which an individual or corporate body shifts some or all the uncertainty encountered in daily activities into the shoulder of insurers in return for the payment of an agreed amount called premium which is usually very small compared to the potential loss. In the effect, what the insuring public and prospective buyers to be continuity in life without set back or normally occasioned by insurable risk or peril.
Insurance companies provide the service of financial sustenance to her participants in the economy. They do this by ensuring the financial rival of other business in the event of the unfortunate occurrence of insurable risk. Without such financial aid as offered by the insurance industry, many a business would have been out of existence. The economic development of any nation is closely related to the behaviour of individuals doing in the country as regard how much to save and how to consume with their earned income.

1.2 STATEMTN OF PROBLEM
The insurance industry is very relevant to the growth and development of very economy, it does not exist like every other insurance institutions without facing some constraints. Some of these problems include.
• Lack of awareness of the activities of the insurance industry.
• The reluctance or insurance companies to pay just claims.
• Unqualified salesman, agents and other insurance canvassers.
• The existence of fake, quack and mushroom insurance companies.
There are insurance companies in the country that are well require by the necessary organizations but still lack the desired technical, financial and management. To mention but a few.

1.3 OBJECTIVE OF THE STUDY
The study is channeled towards examining the roles of insurance companies play in the economy of Nigeria. It is therefore aimed at the following.
a. To access the performance towards the economic development of Nigeria. 
b. To identify the possible factors militating against the effective pursuit of the objective of the insurance industry.
c. To proffer solutions to the identified problems e.t.c

1.4 STATEMENT OF HYPOTHESIS
Ho: It is possible for insurance industry to plan its subrogation
Hi: It is not possible for insurance industry to plan its subrogation
HYPOTHESIS II
Ho: Risk deregulation can ruin the insurance industry
Ho; Risk deregulation cannot ruin the insurance industry

1.5 SIGNIFICANCE OF THE STUDY
This study will be of utmost importance to the Nigerian population especially students studying insurance, in the sense that it will contribute to their understanding of the principles and practice of insurance and the need for it.
It will also help in clearing the mountain of bias, which is already pilled up in the mind of the public about insurance industry and its operation.
This research work highlights the gleaning problems affecting the operations of the insurance industry in Nigeria and goes further to explain how the problems can be solved. As the problems being stated, the insurance would be able to know the areas to improve on possible method(s) to apply in order to cope with them.

1.6 THE SCOPE OF THE STUDY
The scope of this research work covers the insurance and risk management in Nigeria, using NICON Insurance Corporation as a case study.

1.7 LIMITATION OF THE STUDY
The researcher in the course of carrying out the research work encountered few problems, such problems includes:
• Lack of adequate materials dealing on current events and dates. Most of the materials available were outdated.
• Lack of fund to finance the research almost hindered th work. 
• Time factor: There was not enough time to carry out proper research on the work.

1.8 DEFINITION OF TERMS
In other to make the work easy for understanding for any user, some of the term used have bee extensively defined, such as:
• ASSURED: the person covered by the insurance contract.
• ASSURER: insurance company granting insurance protection to the insured.
• BROKER: A person who for consideration, solicit and negotiate, contact of insurance for he insured.
• CLAIM: A demand by the insured payment under his policy.
• COVER: Protection provided by insurance.
• CONTRACT: An agreement between the contracting parties which will rise to enforceable right and obligation.
• DECLARATION: Statements giving information about the insured risk.
• INSURANCE POLICY: A written contract between a person and the insurance.
• LOSS: A loss to an extent means the reduction or disappointment of value.
• RISK: A situation or event in which the probability o an outcome can be determine.
• RISK AVOIDANCE: To get out or escape from risk.
• WARRANTY: A stipulation in the policy relating to the nature of the contract policy.

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