INSURANCE INDUSTRY AND RISK MANAGEMENT IN NIGERIA

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.