ABSTRACT
This study evaluate the expected
impact local content on the growth and development of reinsurance in Nigeria.
The historical, problems and challenges facing the growth and development of
reinsurance business in Nigeria. The prospect efficient and affective
management of reinsurance industry. Hence, the concept of local content in oil
and gas reinsurance business stating the details, importance and problems of
local content to the Nigeria reinsurance companies, the expected impact of
local content of economic development of the reinsurance business. However, the
data used in this study were collected from two
sources primary and secondary data. A liker scaling questionnaire was
the major instrument used in ascertaining basic information in the research
work. The descriptive survey method was used to analysis data collected for the study. Z – test statistical model was
used in testing hypothesis and other response form the respondents and yaros
yama sampling technique was used to determined the sample the test conducted,
conclusion was made on the findings of the study includes: there is reasons for
reinsurance on the growth and development of Nigeria economic. Recommendations
were made in respect of the problems facing reinsurance in Nigeria. Suggestion
was also made for further study. All these are contained in chapter five,
different chapters with reference at the end of each.
TABLE OF CONTENT
Title
page i
Approval
page ii
Dedication
iii
Acknowledgment
iv
Abstract
v
Table
of content vi
CHAPTER ONE
Introduction
1
1.1
Background of the study 1
1.2
Statement of problem. 3
1.3
Objective of the study 5
1.4
Research questions 5
1.5
Significance of the study 6
1.6
Scope and limitations of the study. 7
1.7
Definition of operational terms. 8
CHAPTER TWO
2.1
An overview 11
2.2
Belief history of Emenite limited. 12
2.3
The concept of risk. 15
2.3.1Definitions of
risk. 16
2.3.2Basic
categories of risk. 17
2.4
Concept of risk survey 18
2.5
Reasons for risk survey. 19
2.6
The products offers by Emenite
limited. 21
2.7
Various risk exposed to Emenite as a
company 22
2.8
Duties of a risk surveyor in a manufacturing
firm 24
2.9
Factors to be considered in risk
survey risk survey. 25
2.10 The implication of risk survey in a
manufacturing
Firms 28
2.11 Various methods / strategies used in risk
control. 29
2.12 The legal frameworks of risk survey David
(1989) outline
various legal framework of risk
survey as follow 34
2.13 The
problem facing insurance industry in risk
control. 37
2.14 The
prospect of effective risk management
in
manufacturing firms 39
2.15 Challenges facing the insurance industry in
effective risk management 40
2.16 Illustration of safety audit according to Daw
(1989) 41
References 42
CHAPTER THREE
Research
methodology and design 43
3.1
Research design 43
3.2
Sources of data 43
3.2.1Primary data 43
3.2.2Secondary data 43
3.3
Population of the study 44
3.4
Instrument used for this study 45
3.5
Validity of the instrument 45
3.6
Method of data presentation and
analysis 46
CHAPTER FOUR
4.1
Summary of findings 47
CHAPTER FIVE
5.1
Conclusion of recommendations 49
5.2
Recommendations 50
5.3
Suggestions for further studies 51
Bibliography 52
Appendix
‘A’ 54
Questionnaire 55
CHAPTER ONE
INTRODUCTION
1.8 BACKGROUND OF THE STUDY
Risk
is integral to everyday life. Once we have said that risk is always at the
center of our life. This means that for every human endeavour, there is risk as
a result of our difference provision according to David (2001), risk exist
where the future is unknown. It represents both desirable event when one
intentionally initiates certain thing in order to better as socio-economic
wellbeing. “Because of these desirable and undesirable events. It is a
desirable event when one intentionally initiates certain things in order to
better his socio economic wellbeing. Because of these desirable and undesirable
events, an organization will want to transfer their risk to an insurance
company, which thereby brings about risk survey.
According
to David (1989), the prince object of a risk survey is to provide the
underwriter with as complete as positive of risk being offered as possible, to
enable him decide whether the risk was
acceptable and how it compared with the same kind as the basis for deciding
premium and other terms.
In
the present day, the survey is still closely concerned with provision of
underwriting information and in many situations the information disclosed by
the complete proposal form, will need to be supplemented by a surveyors reports
before the picture is completed. However, the surveyors is now more closely
concerned with audient previous, surveying represents one aspect of the wider
subject of risk control. Moreover, practice varies among individual insurers
and there are no established criteria for surveying manufacturing firms. It may
safely be stated that risks of unusual character or with special features will
normally be surveyed in that firm. A safety or risk audit will be conduct.
A
safety audit is a critical examination of an individual operation in it,
entirely to identify potential hazard on level of risk. Audits are often
undertaken by multi-disciplinary terms. Individual member should have a good
knowledge of legal requirements, an understanding of reasonable practice in the
industry and above all the ability to communicate with all levels of personnel
or departments within the organizational. In many companies, this expertise is
not readily available and so audits tend to be undertaken by external
specialist such as consulting engineers acting independently or employed by
insurance companies. In manufacturing firms like Emenite Limited, risk that
presents a serious injury/hazard is those where there is substantial
involvement machinery. Reports from the health and safety executive in Emenite
Limited. However, show that save 80% of accidents are not caused by machinery
buy by such simple things as falls lifting heavy weights or defectives hand
tools.
Risks
survey will thereby go a long/greater way in boosting productivity in
manufacturing firm via review of risk and it will also help to facilities
improvement in the work force of the company like Emenite Limited.
1.9 STATEMENT OF PROBLEM.
Manufacturing firms
are exposed to various risks as result of the native of their activities in
production of their products. So the roles of risk survey cannot be over
emphasized in the manufacturing firms because risk survey plays huge role in
sustaining the growth and survival of the manufacturing firms in Nigeria.
Nwite (2007) man’s inability to accurately predict the outcome of this
undertaken, the consequences of this action or inaction portray the native of
man as being finites and faller. As a result, risk becomes inevitable incidence
in our day to day activities. For the purpose of this study, the researcher
identified some key factors that will help in identify the problem.
a.
There are various risk exposure in
manufacturing firms.
b.
The way of handling such risk
exposures have not been encouraging.
c.
Risk surveyors in manufacturing firms
have not been living up to their expectations.
d.
There have been lots of bottlenecks in
implementing the proffered recommendations.
e.
To know role of surveys in identifying
such risk and controlling the affects in the operation of manufacturing firms
in Nigeria.
1.10 OBJECTIVE OF THE STUDY
The objectives of
this study is to fluid out various risks confronting manufacturing firms in
Nigeria and the firm of risk surveys in identifying such risk exposures and the
adverse effects in the manufacturing firms. Therefore, the objectives of this
study are as follows:
a.
To find out the various risk exposure
to manufacturing firms in Nigeria.
b.
To find out various ways of handling
such risks exposure in manufacturing firms.
c.
To find out the problems facing the
insurance companies/industries in identifying such risk exposure in
manufacturing firms.
d.
To know the role of risk survey in
manufacturing firm.
e.
To make recommendation on how to
improve the manufacturing firms through adequate risk survey tools by the
insurance industry.
1.11 RESEARCH QUESTIONS
a.
What are the various risk exposures in
manufacturing firm in Nigeria?
b.
How can such exposure be handled by
the insurance industry in order to keep the manufacturing firms going?
c.
What are the problems facing the
insurance industry in risk survey in manufacturing firms?
d.
What are roles of risk survey in
manufacturing firms in Nigeria?
e.
What are the recommendation to improve
risks survey in manufacturing firms?
1.12 SIGNIFICANCE OF THE STUDY
A risk survey is that
core are of insurance business. So, its role in manufacturing firms can not be
over emphasized. The study will help:
1. The
insurer to know the best techniques in treating those risk that threaten the
existence of manufacturing firms.
2. The
insurer to know risk that are facing the manufacturing firms and provide
solution for those identified risks.
3. The
study will also be relevant to academic who wishes to know the data and
information about risk survey in manufacturing firms.
4. In
enlighten the manufacturing firms about those risk they are exposed to in their
daily operations.
5. The
study will serve as a dimension to further researcher and it will give then the
basis for validity or disapproving the findings of this researcher.
6. It
will be also the basis for further research.
7. It
will also be the basis for the award of B.Sc in insurance and risk management.
1.13 SCOPE AND LIMITATIONS OF THE STUDY.
Scope
refers to the dimensional of coverage of this work. It is restricted to Emenite
Limited Enugu. The information gathered
will be used as reference to other manufacturing firms within the federation.
In
carrying out the research work, the researcher was faded with certain problem
which includes:
i.
Time:
Time
constraints, as a student researcher, the problem of trying to keep up with
lectures and at the same time running around for the collection of necessary
information for the completion of this research work.
ii.
Money:
The cost incurred in carrying out this study is very tight in terms of
transportation, photocopying, internet
browsing and others.
iii. Corporative: The
incooperative attitude of some students due to their duty of secrecy.
iv.
Data:
The difficultly of obtaining relevant materials pertaining to this research
work.
1.14 DEFINITION OF OPERATIONAL TERMS.
Hazard: It
is referred as the condition that creates or increase the chance to loss
arising from given peril. (Okonkwo, 1998).
Hedging: It
is a risk transferring mechanism. It can also be the option or a future option
where an organization may decides or arrange a contract with a
supplier/dealer of many particular
product to supply them and he pays premium, so that no matter the level of
increase or decrease in price, the supplier must supply that product to the
organization (Nwite, 2004).
Insurances: It
is a contract between two parties the insured and insurer whereby, the insurer
promises to identify the insured if the insured event happens and on the other
hand the insured will pay a sum called premium to the insurer. (Aneke, 2004)
Insurer: It
can said to be insurance company who offers protection/grant loss or insured
peril. (Aneke, 2004).
Insured: This
is the individual or organization that pay
premium to insurer on interest to be indemnified/pay compensation back
to then (insured) it negative unforeseen even happens to the subject matter
that is insured.
Risk Control:
It is various ways of handling risks or ways of controlling risks (Rayo, 2001).
Moral Risk:
This is concerned with the attitude and conduct of people. In insurance, this
will be primarily the conduct of the insured and insurer (Okonkwo, 1998).
Premium:
This is the price paid for the purchase of an insurance cover which will be
paid monthly or annually or the price for which the insurer undertakes the
insured liability (Aneke, 2004).
Risk Survey: It
can be defined as the prime object of an survey to provide the underwriter with
a complete picture of the risk being offered to cover (Jones 1989).
Salvaging: This
involves training of people for quick responses in protection of damaged plant
or to prevent further damage (Write 2004).
Safety Audit:
It is a critical examination of an industrial operation to identify potential
hazards and its level of risk (Jones 1989).
Get the Complete Project Material Now!!!
