Actuarial Science and Insurance -Scholarly Publications
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- ItemOpen AccessEnterprise risk management practice in insurance companies - An empirical study of the Nigeria’s insurance industry.(2013) Fadun, O. S.The paper examines enterprise risk management (ERM) practice in insurance companies in Nigeria. Specifically, the study explores the understanding, motivation and performance of ERM in the Nigeria’s insurance industry, and the challenges which insurance companies faced in implementing ERM. The study concludes that the level of understanding of the nature of ERM varies significantly between companies and between different parts of the same organisation. The implication for practice is that effective ERM requires an interdisciplinary approach; but, the ERM which is practiced by insurers in Nigeria is dominated by a single discipline. The design of ERM is highly company specific and depends on several factors, e.g., the business model in terms of type of business, geographical presence, etc. ERM design also depends on the risk appetite of an organisation, which includes both qualitative and quantitative elements.
- ItemOpen AccessInformation and communication technology (ICT) and insurance companies profitability in Nigeria(2013) Fadun, O. S.The study examines the impact of Information and Communication Technology (ICT) on insurance companies’ profitability. It identifies the imperatives for adoption of ICT to promoting efficient and efficient service delivery in the insurance industry as a strategy for attainment of the profit maximization objectives of insurance companies in Nigeria. It is an empirical design study, using responses of structured questionnaire of 152 respondents from 18 insurance companies. The study concludes that there is a positive relationship between ICT adoption and insurance companies’ profitability in Nigeria. This implies that adoption of ICT by insurance companies can enhance their efficiency, their quality of service delivery, and their profitability. The implication of the findings for practice is that insurance companies should endeavour to update their ITC facilities regularly, in view of its impacts on quality of service delivery and profitability. The paper highlights the need for regular training of insurance personnel to keep them abreast of the current innovations in the use of ICT so as to ensure that the industry contribute positively to the economy.
- ItemOpen AccessInsurance, A risk transfer Mechanism: An examination of the Nigerian banking industry(2013) Fadun, O. S.The study examines insurance as a suitable risk transfer mechanism for managing risks associated with the Nigerian banking industry. It explores risk and insurance; examines risks and features of insurable risks; outlines banking risks; highlights benefits of insurance to banks; and identifies banking risks and types of insurance banks purchase in Nigeria. The study adopts quantitative approach using the literature, and survey of 20 commercial banks in Nigeria selected through random probability sampling. Structured questionnaires were administered to 200 participants, 10 each from the 20 banks, selected through purposive sampling. The study concludes that banks purchase insurance to manage risks in the Nigerian banking industry; insurance is beneficial to banks and the economy; and insurance enhances banks’ operations in the Nigerian banking industry. Implications for practice suggest that: insurance, if adequately arranged, serves as security and stimulus to banks; insurance facilitates spread of risk and stimulates banks’ operations; and insurance reduces loss through risk prevention and reduction education. Thus, the study highlights the suitability of insurance for managing risks associated with banks’ operations in Nigeria.
- ItemOpen AccessRisk management and risk management failure: Lessons for business enterprises in Nigeria(2013) Fadun, O. S.The recent economic volatility gives risk management a new focus and eminence. Successful firms are able and willing to effectively integrate risk management at all levels of management process. The purpose of the study is to highlight the importance of effective risk management (ERM) in preventing risk management failure. Risk management failure prevents firms’ from meeting their expectations; thus, results to repeated business and project failures. Although the degree of risk management actions varies among firms; ERM ensures that firms’ attain their corporate objectives. Using the literature, the paper highlights that knowledge of risk management is essential in business enterprises. It described risk and risk management; explores importance and benefits of ERM to business enterprises; highlights reasons why enterprises manage risks. It also examined failure of risk management, causes of such failures, and how to minimise such occurrence. The study established that risk management failures can be categorised into two: operational failure and operators’ failure. The implication for practice is that risk management is an integral part of the decision-making process and ERM can improve business performance, thereby minimising possibilities of business failures in Nigeria.
- ItemOpen AccessCorporate governance and insurance company growth: Challenges and opportunities(2013) Fadun, O. S.The paper examines challenges and opportunities associated with corporate governance and insurance company growth. It advocates the imperative of good corporate governance in the insurance industry. The paper describes corporate governance, examines corporate governance theoretical perspectives, highlights the challenges of corporate governance in Nigeria, and explores the relationship which exists between corporate governance and insurance company growth in Nigeria. The study is an empirical design using the responses of survey, structured questionnaires, of 112 respondents. Pearson product coefficient of correlation(r) is employed for data analysis and hypotheses testing. The findings reveal that good corporate governance promotes safe and sound insurance practice; effective supervision promotes good corporate governance; and the new code of good corporate governance for the Nigerian insurance industry enhances insurance companies’ growth in Nigeria. The implication for practice suggests that effective corporate governance is necessary for proper functioning of insurance companies in order to promote growth and secure public confidence. The paper highlights the fact good corporate governance practices can enable the Nigeria insurance industry to generate more resources to create more employment opportunities and support the economy by way of prompt claims settlement.