The aim and objectives of this project is to carry out statistical analysis on insurance operation in Kwara state, Ilorin from 2004-2009.

To ensure a comprehensive and up-to-date analysis of the study, the project has been divided into five chapters.

Chapter one deals with general introduction, historical background, aims and objectives, achievements of the company, the principle guiding insurance business. It also shed light on the importance of the study, limitation of study, definition of some insurance terms and the organization structure of Gateway Insurance Plc.

Chapter two contains literature review, the chapter discuses and relates definition of insurance business, categories of various insurance policies by some writers and the concept of life insurance and field experience.

Chapter three comprise collection and presentation of data. In this chapter, data presented in tabular form and general data collected are presented using pie chart and histogram.

Chapter four deals with analysis of data. It explains the method of analysis used.

Firstly, Spearman’s Rank correlation method, followed by moving average and lastly least square regression line method. In this chapter conclusion was draw on the data analyzed and prediction made on future market sale/trend of Gateway Insurance Company Plc.

Chapter five comprises general inference recommendation and conclusion.


Title page i

Approval sheet ii

Dedication iii

Acknowledgments iv

Preface v

Table of contents vi



1.0 Historical Background 1

1.1 Aims and Objectives 3

1.2 Achievements of the Company 4

1.3 The Principle Guiding Insurance Business 5

1.4 Importance of the study 6

1.5 Definition of some Insurance terms 7

1.6 Limitation of the study 11

1.7 Organization structure of Gateway Insurance Plc 13


2.0 Literature Review 16

2.1 Concept of life Insurance 19

2.2 Field Experience 21

2.3 The impact of each insurance policy to the Development 

of insurance business 22


3.0 Data Collection 24

3.1 Various classes of some insurance policy and the 

categories of people that takes each policy 27

3.2 To know the insurance policy that recorded the largest number 

of customers from 2004-2009 with reference to sum assured. 29


4.0 Analysis of Data 33

4.1 Spearman’s Rank Correlation method 36

4.2 Method of Analysis used 39

4.3 Moving Average Method 40

4.4 Least Square Regression Analysis 42


5.0 Summary of Finding Discussion 53

5.1 General Inference 53

5.2 Recommendation and Conclusion 55

Reference 57




There exist risks in all forms of business organization since there are many factors over which man has no power. Man cannot control for example, the force of nature or some of the conduct of their human beings.

Infact, all human endeavours has its attendant risks and hazard and one would wants to cover himself against these hazards hence this process is generally known as insurance.

The probability of these risks can be calculated mathematically and it is against these background that insurance can be effected. Insurance is based upon the polling risk. There is a common fund called premium to which the insured contributed to an it is from these that payment is made to those who suffer loss.

The Gateway Insurance Company Plc was established by the Kwara State Government in 23rd September 1970 about two decades ago as a limited liability company. The company is licensed to transact all classes of insurance including accident, life and pension when it was fully incorporated.

The company was formerly owned by the Kwara State Government but due to the creation of new state with some parts of old Kwara State created as Kogi state and some part also given to Niger state, the share capital is now owned by the three state governments with Kwara State having the largest share. Also some local government in the state has share in the company.

According to Mr. A. Toyosi, the secretary to the Deputy General manager, Administration, the company has almost completed its process of privation and its shares will soon be in the markets for sales. When the company started operation in 1970, it has only three branches with the headquarters at Ilorin and other branch offices at Lagos and Kaduna.

But as at today the company now has about 17 braches offices spread all over the country with a competent and highly skilled staff strength of abut 200 which makes it one of the leading insurance company in Nigeria. Among the reason that motivated the old Kwara state to set up the company was that it will help to generate additional revenue when the state was newly created in 1967. Since its establishment, the company has not only being meeting the aspiration  of the state government but it has also improved the social and economic life of the people of the state and Nigeria as a whole. The company is also rendering excellent services to various business organization against unexpected losses.


The aims and objectives of carrying out this project work are the following:

1. To find the effect of commission charged on sum assured of the company and the rate percent charged on the various policies of the company.

2. To find the rate at which people insure their properties e.g. life insurance, marine insurance, fire insurance e.t.c

3. To find which insurance policies has the largest number of customers with respect to sum assured and commission received.

4. To make prediction on sum assured on various policies for the future to determine the market trend/sales


Since the company started operation over two decade’s age, it has made an outstanding progress which makes it one of the leading insurance companies in Nigerian.

Although the company was authorized to transact all insurance business when established but this could not be achieved as a result it some problems ganging from inadequate skilled personnel, limited capital and other related problems. 

Since there has been significant improvement in its services, the company is now waxing stronger by transacting fully all classes of insurance. This can be as a result of the skilled personnel and experts in insurance business now employed by the company.

The classes of insurance business transacted by the company includes life policy personal scheme. Other are the non-life assurance business like, motor, fire and special perils which covers tornado, rainstorm, flood, policies in the Gateway Insurance company also covers Goods interansit, marine, personal accident guarantee, cash interansit and Burglary.

There is the other new insurance business the company is going into called Engineering Insurance which covers machinery-breakdown. Also due to the different location of its customers. The company has established about 17 branches spread all over the country with a capital base of over N2million.


The principles guiding insurance business in Gateway Insurance company generally, which however accounted for its leading role in insurance business are the following:

i. PRINCIPLE OF INDEMNITY: Under this principle the insurance company tells the assured that he/she would be compensated if any loss or damage occur to him so that he will not feel the impact of such loss.

ii. PRINCIPLE OF SUBROGATION: This is the principle where by the insurance company gives the customer law that he should make sure that another person does not use the property insured with them such as motor car, radio tape e.t.c 

iii. PRINCIPLE OF UTMOST GOOD FAITH: this is the principle of insurance where the assured are warned as seriously on the risk inherent in telling lies during the investigation which is likely to be carried out by the company when a customer suffers any loss.


During the course of the study, I was able to understand the various insurance company, which have for long not been opened to perspective customers and also I was able to know the mode of operation of these policies other than motor insurance policy which many customers believe is the only available policy transacted by the company.

I also understand the immense contribution of insurance company to the development of a country particularly in the social, economic and industrial sector by giving adequate protection against unexpected loss. I also gained knowledge about the factors responsible for the performance of each insurance policies which according to Rev. P. A Adeyemo, the manager of motor insurance said is dependent on the economy.


PROXIMATE CAUSE: This is the principle where the insurance company assures the customers that they would compensate him on the property he insured these.

HULL: This is the policy which covers the damage or loss that may happen to a ship or damage it cause to other ship.

INSURANCE INTEREST: This term refers to a situation where only person s how have direct interest in the item to be insured may insure it.

CARGO: This refers to marine which risk which may be for a particular cherishment or floating polices covering up to maximum of declared values.

POLICY: This refers to the period of agreement reached by the company and customers. If this period or agreement expires that policy also terminates.

FREIGHT: This is the money charged for the carriage of goods from one place to the other by ships.

ENDOWMENT: this is the method of saving under life insurance which includes the addition of bonus.

COMPREHENSIVE POLICY: This policy provides the two parties to an accident under the motor accident and seems to expensive to run.

THIRD PARTY POLICY: This policy provide as cover fro only the third party if an accident occurs under motor accident policy.

COMMISSION: This is the real profit or gain by insurance company on each policy.

NET PREMIUM: This refers to the profit gained after all expenses have been deducted.

GROSS PREMIUM: This is the total profit gained when all expenditures have not been deducted.

SUM ASSURED: this refers to the amount of money paid to the insurance company.

PROXY: This is the method used to show customer (assured) during the renewal of business with the company.

LAPSE: This term is used to describe a policy that have expired.

MORTGAGE PROTECTION: This policy covers the eventuality of the death of a policy holder before paying fully a mortgage and the insurance company will pay off the mortgage in the name of the dead policy holder, thus relieving the members of the family of the responsibility.

TERM ASSURANCE: This is whereby a policy holder (customer) may insure his life a particular period and if he dies within the agreed period he will be paid benefit but he will not be paid if he does not dies after the agreed period.

FIRE INSURANCE: This insurance provides over particularly to property owner building and the contents kept in them against fire damage. Most importantly this policy covers machinery, industrial establishment. The policy covers special perils, like, lightening, explosion, tornado or rainstorm, flood, earthquake e.t.c.

HOUSE OWNER POLICY: This policy provides cover fro house owners against the risk of the fire and other perils.

HOUSE HOLDER POLICY: This policy covers householder properties (like TV, furniture, equipments) against fire accident.

BURGLARY INSURANCE POLICY: This policy is designed to cover valuable properties both at home and business premises against burglar by visible violent and forceful entry. 

This policy is common to shop owners, supermarkets, chemist shops and even government warehouse.

PERSONAL ACCIDENT INSURANCE POLICY: This policy provides protection for individual against the risk of accident like motor accident, industrial accident or home accident. There is compensation due to the person that insures against these hazards.

TWINS INSURANCE POLICY: This insurance policy provides cover for couples in the eventuality of giving birth to twins. This policy if undertaken by couples help reduce the burden of expenses which they may incur.

LIFE INSURANCE: This type of insurance policy provides compensation or payment if there is disability or death of the assured or if the contract matures in the case of endowment insurance provided the contract is bringing. That is premium are paid as at when due. Life insurance comprises of three types viz: Industrial, Group and ordinary, industrial life policy differs from ordinary life policy in that the system of paying premiums is usually by calling on the policy holder weekly or fortnightly.

Group life insurance, provides coverage to the lives of a member of individuals under one master plan that is to some group of people.

ENDOWMENT INSURANCE POLICY: This type of insurance policy is common in Nigerian. It means that the money assured for a fixed term of years is payable form the date of the policy at that time or pervious death. This policy cater for the department during the policy and can also provide for capital at retirement to supplement pension. This policy can be useful such as in banking for credit facilities and as collateral security for financial assistance.

CHILDREN’S EDUCATION INSURANCE POLICY: This policy can also be said to be endowment insurance but this policy provides fund for expense of education for children of the assured who contribute to this fund, and the date of maturity of the policy must colncide with the year in which such expense is expected to being.

The sum assured is either be paid installmentally or full and premiums are payable throughout the terms of the policy or until earlier death.


The method of collecting data and how cleverly one is able to present and analyze these data collected contributes largely to the success of any research project. Therefore, I have limited the scope of this study only to the Gateway Insurance company Plc for case study to facilitate accurate, efficient and easy collection of data.

The data collected however, is secondary data by extraction from past records as it was difficult to collect raw data about the company polices and objectives.

Infact, during the study, it was impossible for me to get basic raw facts from the officers I interviewed, as they were not willing to part with such information. Eventually, this has limited the scope to which the study was intended to cover.

ADMINISTRATION: These problems almost created as set back during the study, because I was unable to se the PRO of the company who could have given me the necessary information. Administration who later attended to me was unable to give the needed information; this has limited the scope of study.

Another problem encountered during the study was the inability of the company to make its financial standing public for me to be able to estimate the sale trend of each policy.

All these problems has however limited the extent to which the statistical analysis was intended for this project.


The achievement recorded by gateway insurance in the insurance business is not unconnected with a well structured and efficient administration.

At the help of affair of the company is the Board of director made up of eminent Nigerians who have distinguished themselves in various field, seeing to the day to day efficient administration of the company.

There are also five (5) top-management staffs with the managing director at the top responsible the management of the company. Others are the Deputy General Manager (Technical). Assistant General Manager (Finance) Assistant General Manager (Administration) and the controller of marketing.

Next are the middle management staffs who are managers responsible for the eight (8) department of the company.

The departments are:

i. Accounts

ii. Administration

iii. Claims

iv. Fire general accident

v. Motor

vi. Life

vii. Internal Audit

viii. Re-insurance

The organization charts is shown below:



















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