The main objective of this study is to analyse the effects of claims settlement on the profitability of Nigeria Insurance industry. The study adopts descriptive and analytical method of historical and time series data. The study was conducted to cover the period from 1986 to 2011 (twenty-five years). The secondary data used for the study was obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin, 2014. The secondary data were presented in tables and multiple regression method was adopted to assess the relationship between the variables employed. T-statistics and F-statistics were used to test the hypotheses formulated in the study. The result from the analysis revealed that there is a significant relationship between claims settlement and profitability of the Nigerian insurance industry. Also, there is a significant relationship between claims settlement and premium received by insurance industry in Nigeria. It is therefore, recommended that insurance firms need to emphasize prompt payment of adequate claims for increased patronage, which is always reflected in payment of premium and profitability.



Title Page              --       --       --       --       --       --       --       --       --

Declaration--        --       --       --       --       --       --       --       --

Certification--       --       --       --       --       --       --       --       --

Dedication-- --       --       --       --       --       --       --       --

Acknowledgement--       --       --       --       --       --       --       --       --

Abstract--    --       --       --       --       --       --       --       --

Table of Contents--         --       --       --       --       --       --       --       --

List of Tables--     --       --       --       --       --       --       --       --

List of Figures--    --       --       --       --       --       --       --       --



1.1             Background to the Study--        --       --       --       --       --       --      

1.2             Statement of Problem--   --       --       --       --       --       --       --      

1.3             Objectives of the Study-- --       --       --       --       --       --       --      

1.4             Research Questions--      --       --       --       --       --       --       --      

1.5             Research Hypotheses--   --       --       --       --       --       --       --      

1.6             Significance of the Study--       --       --       --       --       --       --      

1.7             Scope and Limitation of the Study--   --       --       --       --       --      

1.8             Organization of the Study--      --       --       --       --       --       --      

1.9             Definition of Terms --     --       --       --       --       --       --       --      



2.1     Conceptual framework -- --       --       --       --       --       --       --      

2.1.1 Concept of Claim in Insurance-- --       --       --       --       --       --      

2.1.2 Claims Management--      --       --       --       --       --       --       --      

2.1.3  Claims Payment and Premium Income--      --       --       --       --      

2.1.4 Relationship between Claims Payment and Profitability--  --       --      

2.1.5 Effect of Premium Payment in Claims Settlement and Income--  --      

2.1.6 Insurance and Profitability--      --       --       --       --       --       --      

2.1.7 Factors Inhibiting Effective Management of Claims Settlement  --      

2.2 Theoretical Framework--    --       --       --       --       --       --       --      

2.2.1 The Fraud Triangle Theory--     --       --       --       --       --       --      

2.2.2 Trigger of Coverage Theories--  --       --       --       --       --       --      

2.3 Empirical framework--       --       --       --       --       --       --       --      



3.1 Research Design--     --       --       --       --       --       --       --       --

3.2 Sources of Data Collection--         --       --       --       --       --       --      

3.3 Data Required--        --       --       --       --       --       --       --       --

3.4 Method of Data Analysis--  --       --       --       --       --       --       --      

3.5 Model Specification--         --       --       --       --       --       --       --      

3.6 Estimation Techniques--     --       --       --       --       --       --       --      



4.1 Data Presentation and Analysis--  --       --       --       --       --       --      

4.1.1 Data Analysis--      --       --       --       --       --       --       --       --

4.2 Test of Research Hypotheses and Discussion of Findings     --       --      



5.1 Summary of Findings--       --       --       --       --       --       --       --

5.2 Conclusion--   --       --       --       --       --       --       --       --       --      

5.3 Recommendations--  --       --       --       --       --       --       --       --      

REFERENCES --  --       --       --       --       --       --       --       -- 




           Insurance industry is a subsector of the Nigerian financial system that deals with uncertainties, that is, events which are likely to occur and cause loss. It is also a service oriented industry that exist to absorb or transfer the risk of individuals, groups of people, other business ventures or government to ensure and encourage their continuous growth and development. They evolved to safeguard the financial interest of people from uncertainties by providing indemnity if an unexpected event occurs. Insurance companies are financial institutions set up to provide insurance covers to individuals and corporate bodies against possible risk occurrences, (Akpan, 2005).

          Insurance must do with managing the unknown, which itself is associated with the future. To insure, as it is commonly used is to guard against the unknown, to ameliorate risk; or to compensate the risk.

          According to Butler’s et al (2010), to insure, in a way is to make a contract that promises to pay one or somebody an amount of money in case of accident, injury, death etc. Butler’s definition links closely with the description of insurance by Akpan (2005) who defines insurance as a contract which is based on the pooling and sharing of risks of diverse persons and institutions, on the premise that institutions will suffer actual losses at a given point in time.

        The normal activities of daily life carry the risk of enormous financial loss thus, the emergence of insurance industry to cushion the effect of risk or loss occurrences to enhance productivity.

       However, despite the relevance of this industry, there is a false notion held by the masses that the Nigeria insurance industry does not effectively pay claims or liabilities and this notion has had an adverse effect on the profitability of the industry.

      Claims management in insurance industry is an organized and efficient method of handling and settling claims accrued to an insured under an insurance policy as speedily and practicable, as it is the bedrock upon which the general operation of insurance industry rest on. Claims are demands made by an insured for the benefit, right, compensation or indemnity which he is entitled to under an insurance contract.

      The ability and willingness of an insurance company to settle claims may be an acid test to its efficient operation. Butler (2010) concurring with this asserts that claims management is central to insurance industry because it determines the operational efficiency and profitability of this subsector of the Nigerian financial system.

      Poor and bad claims management is prejudicial to the insurance subsector and may jeopardize the entire operation of the industry. Butler (2010) states that a bad impression received on the settlement of claims or a blatant withholding of loss payment may give rise to a general loss of business, court action, regulatory censure or even withdrawal of license to carry out further operations. Thus, the profitability of the Nigerian Insurance industry is anchored on its ability to effectively and efficiently manage and settle claims when due to build public confidence in its operations.


     Insurance industry is one of the key players in the financial sub-sector of the economy. As an integral part of this sector its paramount roles, functions or obligations are the provision of coverage against risks or losses and the settlement of claims as at when due, to enhanced economic efficiency.

      The Nigerian insurance industry over the years has under-performed its roles in the financial subsector of the economy when compared to its counterpart in other parts of the world. The major factor that has caused this is poor claims management.

      Poor claim management is exhibited in the following ways: the inability to settle claims properly to stimulate the interest of the populace, the failure to live up to expectation in payment of claims has led to poor public perception of the industry, high and fraudulent claims by insurance claimants which has hit the reserve base of the industry, low level of professionalism ethical standard and lack of commitment to the insurance profession about payment of claims.

     These myriads of lapses in the system operation are encapsulated in poor claims management which has affected the profitability of the Nigerian Insurance Industry adversely. This state of affairs has aroused the concern of the researcher to investigate the relationship between payment of claims and profitability of the insurance companies in Nigeria.


     The main objective of the study is to investigate the relationship between payment of claims and performance of insurance companies in Nigeria.

Other specific objectives are:

       i.            To examine the effect of payment of claims on profitability of the insurance companies.

     ii.            To assess the gap between payment of premium and payment of claims.

  iii.            To examine the process of payment of claims.

  iv.            To examine the intervention of government in payment of claims by insurance companies in Nigeria.


       i.            What is the effect of payment of claims on profitability of insurance companies?

     ii.            What is the gap between premium and claims in the Nigerian insurance sector?

  iii.            What is the process of payment of claims?

  iv.            How is government intervening in payment of claims by the insurance companies?


Ho:     There is no significant relationship between claims settlement and profitability of the Nigerian insurance industry.

Hi:     There is a significant relationship between claims settlement and profitability of the Nigerian insurance industry.

Ho:     There is no significant relationship between claim settlement and premium received by insurance industry in Nigeria.

Hi:     There is a significant relationship between claim settlement and premium received by insurance industry in Nigeria.


      It is hoped that the findings of this study will be of immense benefit to the government and the Nigerian Insurance industry in addressing claims management problem and revamp its operations to stimulate and instil the public interest and confidence in its services to enhance profitability.

     The study will form a very useful information resource base for future researchers, the students, the government, the insuring public and the insurance companies on issues of claims management in the industry to enable them to know their strength, weaknesses and challenges and how to improve and overcome them to enhance their profitability. Finally, the research work will add to already existing literature on the research area.


     This study is designed to cover the Nigerian Insurance Industry in relation with claims management and profitability. It will also examine some measures adopted in claims management.

     However, a study like this cannot be carried out without some limitations. The most obvious problems faced by the researcher is that of obtaining reliable data on claims issues and claims settled in print like textbook in the library. Funds were not sufficiently available for this study due to poor economic situation in the country.

      However, the researcher has been on top of the problems and the findings made in this study are valuable, authentic and valid for consideration.


     The research project is divided into five chapters with introductory chapter focusing on the background to the study, statement of the problem, objectives, scope and limitations of the study, research hypotheses, research questions and definition of terms used in the research study.



RESEARCHWAP.COM is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • " is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • " is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing