1,720,963 research outputs found
Ethics and social responsibility in the Nigerian insurance industry: a multi-methods approach
Full text linkThe concern about how business should behave as one of the dominant institutions in society, widely referred to as corporate social responsibility, has been a subject of interest among academics and practitioners all over the world. The increasing global outlook of business activities and the need to understand environments in most parts of the globe have also made this concept relevant for all time. This thesis therefore relates to a study, which assesses the perceived role of ethics and social responsibility for organisational effectiveness in a developing and African country. It was argued that ethics and social responsibility must first be perceived to be important for business success, before managers’ behaviour can become ethical and reflect greater social responsibility.
Using a mainly qualitative approach and aided by some quantitative analysis, the study explored the perceived importance of this construct (ethics and social responsibility) for organisational effectiveness among insurance managers in the Nigerian insurance industry. This exploration and the analysis are based on the theoretical assumptions that personal and situational factors do influence managers’ perception of the importance of ethics and social responsibility and its business assumption. These, therefore, constitute major outcomes of the study.
Given that the study is the first of its kind in the insurance industry, and Nigeria, a developing economy, its outcomes further aids our understanding of how managers in an African socio-economic context perceive the construct and their readiness to translate it into business practice. Above all, the thesis demonstrates that the perceived importance of ethics and social responsibility for organisational effectiveness is a function of industry and product nature, individual moral values, corporate ethical values and organisational commitment. The findings suggest that meeting customers’ expectations reinforce trust-relationship, which in turn is moderated by some other personal-situational factors. The findings also indicate that highly idealistic managers were more sympathetic towards the welfare of others, and have higher perception of the important role of ethics and social responsibility for business success
Reinsurance and the determinants of the ceding decision of life insurance companies in Nigeria : an empirical analysis
Full text linkPURPOSE: This paper is an empirical analysis of Nigeria's determinants of the ceding decision of life insurance companies. It is birthed from the notion that reinsurance, though highly beneficial to the insurance industry, is rarely undertaken by life insurers. Thus, this study aims at expounding on the determinants of reinsurance decisions of life insurance companies in Nigeria and the relationship of each determinant with ceded reinsurance.METHODOLOGY: An ex-post facto research design was adopted, and a sample size of seven (7) core life insurance companies in Nigeria was selected using the purposive sampling technique. Data were sourced from the Nigerian Insurers Digest and the websites of the select insurance companies covering the years 2011 to 2019. Descriptive analysis and unit root tests were conducted on the data to justify its suitability. Data were further analyzed using the panel data regression, and a decision was arrived at using the Hausman and redundant fixed effect tests.RESULTS/FINDINGS: The analysis showed a significant relationship between leverage and ceded reinsurance, firm size and ceded reinsurance, as well as return on assets and ceded reinsurance, while underwriting risk and reinsurance price had insignificant relationships with ceded reinsurance. All the explanatory variables also had positive relationships with the ratio of ceded reinsurance. Thus, it was concluded that leverage, firm size and return on assets are major determinants of the ceding decision of these companies, while underwriting risk and reinsurance price are not.ORIGINALITY AND PRACTICAL IMPLICATIONS: This study is an original work of the authors. It practically shows the relationship between the factors considered by life insurers in deciding to cede their risks and ceded reinsurance. With previous studies on reinsurance and its benefit to the insurance industry, this study brings factors that impede the life insurer from deriving these benefits. Therefore, it was recommended that to encourage life insurers to cede more risks, policymakers and regulators should align specific regulations on leverage, firm size and return on assets of life insurers in Nigeria.peer-reviewe
Financial Risks and Financial Performance of Insurance Companies in Nigeria
Full text linkThough, insurance companies serve as a tool to mitigate the effect of loss or damage to both individuals and organisations, they are also exposed to variety of financial risks which could negatively impact their financial performance. This study investigated the impact of financial risks on the Nigerian insurance companies financial performance. Using an ex-post facto research design, data for twelve years period (2012-2023) for 10 insurance companies was extracted from their audited annual reports. Descriptive and inferential analysis were performed on the extracted data using Eviews 9. The result of the fixed effect model estimation revealed that liquidity risks, credit risks and underwriting risks does not significantly affect return on assets. Thus, the study found that financial risks have no significant impact on the financial performance of insurance companies in Nigeria. It was recommended that insurance companies diversify their investment portfolio by investing their idle funds across different industries and that the National Insurance Commission (NAICOM) should ensure adherence to the provision of section 41 and 25 of the Insurance Act of 2003 which deal with the timely payment of insurance premiums to the insurer and the investing of insurance funds
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
Assessing the Relationship between Sales Quotas and Moral Judgement of Insurance Salespersons: The Moderating Effects of Moral Values, Quota Failure Consequences, and Corporate Ethical Climate
Full text linkThere is an increasing call for managers in the Nigerian insurance industry to espouse higher level of ethical behaviour to earn the trust of customers, regulatory agencies, and other stakeholders. Arguably, this will enhance market penetration, increase patronage and higher level of profit. Theoretically however, ethical behaviour can be institutionalized in organizations if the top management support ethical behaviour through punishment and reward (high ethical climate). Other than corporate ethical values, managers’ beliefs about the rightness and wrongness of an action in a particular situation could also be a function of his/her personal moral philosophy. With respect to financial services, one aspect of marketing which have been empirically shown to have influence ethical judgement and behaviours of managers is sales quotas. When salespersons are assigned
higher sales quotas, which are perceived as difficult, the tendency to engage in unethical behaviour to achieve this target becomes higher. In this study, we assess and extend the theoretical relationship between moral judgement of salespersons and perceived quota difficulty in the insurance industry. The study also explores the moderating effects of salesperson’s ethical values (idealism and relativism), corporate ethical climate, and quota
failure consequences on the proposed relationship. With a structured questionnaire, data was collected from respondents in the target industry through a multi-stage sampling strategy. Exploratory factor analysis was performed to assess the factorial structure of the measures used in the study, their reliability and validity. Using correlation and regression analysis, the results were presented and discussed with managerial implications for
the Nigerian insurance industry
Measuring the perceived importance of ethics and social responsibility in financial services: A narrative-inductive approach
Full text linkPurpose - This paper aims to reflect the argument that the impetus to engage in socially responsible actions is ultimately reinforced by the perceived belief that doing so will be beneficial to the corporation in the long run. Design/methodology/approach - The paper uses a narrative-inductive approach to make important contributions to the corporate social responsibility- organizational effectiveness literature. Data were collected through a semi-structured interview, and analyzed using qualitative analysis strategies. Findings - The study reports a profound perceived usefulness of ethics and social responsibility for business in the insurance industry in Nigeria. Furthermore, the study presents evidence that indicates that consciousness about the role of ethics and social responsibility in organizational effectiveness in this context is low, but, nevertheless suggests a positive posture towards the constructs. This positive posture seems to have been driven by the negative image of the industry and the need to remedy the situation. It suggests that this can be achieved through a show of genuine concern for the needs of the consumers, and the need to reinforce their trust and confidence in insurance as a loss mitigating mechanism. Practical implications - While shareholders' value maximization was shown as one of the considerations for ethical and social responsible behavior compromise, findings from the study also suggest that stakeholders' value maximization would be an effective consideration for the industry to improve the present low market penetration. The paper draws out the need to amend short-term goals for long-term goals by sacrificing short-term profits for long-term profits and survival. Originality/value - Although the strategic importance of ethics and social responsibility has been investigated using the deductive approach in other industries, this work provides an alternative to this existing bulk of positivist investigations by using an inductive approach with subjects drawn from the insurance industry. The study also seems to the authors' knowledge, the first to investigate the strategic importance of this construct in a developing and apathetic market such as Nigeria. © 2012 Emerald Group Publishing Limited
Underwriting Risk and Performance in the Non-Life Insurance Sector in Nigeria
No full textInsurers face underwriting risk in their basic operations, which, if inadequately managed, may threaten their profitability. This study aimed to examine the impact of underwriting risk on the performance of publicly traded non-life insurers in Nigeria. This research employed an ex post facto design, utilising data spanning 13 years (2012-2024) from the audited annual reports of 11 insurance companies. The random-effects regression model indicated that underwriting risk has a significant negative impact on underwriting profit and a significant positive impact on the expense ratio. Insurance businesses are advised to enhance their risk assessment frameworks, implement actuarially robust pricing models, and further develop their data analytics capabilities. They must institutionalise rigorous underwriting criteria and enhance internal monitoring systems to mitigate risk buildup, while focusing on cost-containment techniques such as process automation, efficient claims administration, and the elimination of administrative overheads. By using these measures, they can improve underwriting profitability, minimise cost inefficiencies, and secure long-term financial sustainability in a progressively competitive and uncertain insurance market
NIGERIJSKI FINANSIJSKI SISTEM: VEZA IZMEĐU CEDIRANJA REOSIGURANJA I FINANSIRANJA KAPITALOM U SEKTORU NEŽIVOTNOG OSIGURANJA
No full textIn an era marked by increasing regulatory scrutiny and market volatility, insurers’ decisions regarding capital acquisition and reinsurance utilization are paramount to their ability to thrive, adapt, safeguard policyholders’ interests and maintain a margin of profit. This study examines the relationship between reinsurance utilization and equity financing in the Nigerian insurance industry as part of the Nigerian financial system. It hypothesizes that there is no significant relationship between reinsurance ceded and equity in non-life insurance companies in Nigeria. The study hinges on the bankruptcy cost theory and the renting capital hypothesis. The ex-post facto research design is adopted for the study and the population comprises all the registered insurance companies in Nigeria undertaking non-life insurance from which a sample of thirty-six (36) companies are selected using the purposive sampling technique. Data is drawn from the annual reports of the selected companies and Nigeria Insurers’ Digest over a period of 23 years and analyzed using the pooled ordinary least squares regression, fixed effect, random effect regression and generalized method of moments. The results reveal a significant relationship between equity and reinsurance ceded. It is concluded that reinsurance utilization impinges on equity financing in non-life insurance companies. It is recommended that low-capitalized insurers should cede more risks as a buffer to their capital, guard against bankruptcy, and enhance profitability and solvency.U eri koju obeležava sve veći regulatorni nadzor i nestabilnost tržišta, odluke osiguravača u vezi sa sticanjem kapitala i korišćenjem reosiguranja su od najveće važnosti za njihovu sposobnost da napreduju, prilagođavaju se, štite interese osiguranika i održavaju maržu profita. Ova studija ispituje vezu između korišćenja reosiguranja i finansiranja kapitalom u nigerijskoj osiguravajućoj industriji kao delu nigerijskog finansijskog sistema. Pretpostavlja se da ne postoji značajna veza između cediranog reosiguranja i kapitala u kompanijama za neživotno osiguranje u Nigeriji. Studija se zasniva na teoriji troškova bankrota i hipotezi o iznajmljivanju kapitala. Za studiju je usvojen dizajn istraživanja ex-post facto, a populacija obuhvata sve registrovane osiguravajuće kompanije u Nigeriji koje se bave neživotnim osiguranjem, iz kojih je uzorak od trideset šest (36) kompanija izabran tehnikom namernog uzorkovanja. Podaci su prikupljeni iz godišnjih izveštaja odabranih kompanija i publikacije Nigeria Insurers’ Digest tokom 23 godine, a analiza je sprovedena korišćenjem metodologija: pooled ordinary least squares (POLS), regresije sa fiksnim efektom, regresije sa slučajnim efektom i generalized method of moments (GMM). Rezultati otkrivaju značajnu vezu između kapitala i cediranog reosiguranja. Zaključeno je da korišćenje reosiguranja utiče na finansiranje kapitalom u kompanijama za neživotno osiguranje. Preporučuje se da osiguravači sa niskom kapitalizacijom cediraju više rizika kao zaštitu svog kapitala, zaštite od bankrota i poboljšaju profitabilnost i solventnost
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