Social And Economic Benefits Of Insurance

3150 words - 13 pages

Name – Olagunju Tahir

Matric No. – 139022111

Course Title – Theory of Risk and Insurance

Topic - Social and Economic benefits of Insurance.

Insurance occupies a critical position in any developing economy yet insurance penetration remains abysmally low in Nigeria. Insurance penetration is measured by Total Premium to Gross Domestic Product. Nigeria is ranked 85th in terms of global Insurance Density Premium Per Capita (IDPPC) while South Africa occupies 32nd position-Sigma Publication 2011. The latter is number 1 in Africa with IDPPC of $1,037 while that of Nigeria is $10. Prior to rebasing of the GDP, insurance contribution was N 300billion or just a little less than 1% of Nigerian ...view middle of the document...

Insurance remains one of the critical tools for handling this contingency.

With a population of 169million, Economy size of $510billion (following the rebasing of 6th April 2014) and an annual GDP Growth rate of 6.18%, Nigeria qualifies as one of the fastest growing emerging economies. With the total privatization and/or emancipation of the economy from the yoke of Power Holding Company of Nigeria (PHCN) combined with the unyielding efforts to contain corruption, the economy appears set to witness a rebound and an exponential growth never known in its 53years of existence. The global community is coming to terms with the reality that Nigeria has leapfrogged itself to the position of 26th largest economy in the world and leads the pack not only in the sub-region but in Africa. Global investors have defied insurgents and have converged in Abuja in droves in spite of prevailing insecurity. This speaks volume on investors’ confidence in the Nigerian economy.

The core challenge facing us today as a nation is developing the requisite leadership cadre and strategy to move 70% of our population presently in the world’s league of poorest of the poor 6 Nations to wealth and prosperity. What strategies are to be adopted and adapted? What organizations and companies will be involved in this horrendous change? Insurance remains strategic and critical to this transformation and this is the challenge facing the industry today.

However despite these set backs insurance plays a pivotal role in the social and economic development of the economy as highlighted below.

a) Social Protection – By providing protection to individuals, insurance also has broader implications for the organization of the society. At the most general level, insurance frees individuals from social constraints. Without insurance the individual remains dependant on the support of the family or the community or else risk poverty and destitution and even in the case where such support is available, many of the shocks will continue to have strong welfare effects on the poorest. Further social ties are loser on large cities and the support of the larger family is weakened. By mitigating the effects of exogenous events over which we have no control i.e illness, accident, death, natural disasters, insurance allows individuals to recover from sudden misfortune by relieving or at least limiting the financial burden, in the case of health insurance and life insurance, it could even mean the difference between life and death. Those countries that do not enact a fundamental shift in their welfare strategy risk suffering from low economic growth, depressed demand and an erosion of their competitiveness due to growing demographic pressures. There is room for task sharing between private and social insurance and insurance can play an important part in helping states provide security to citizens while alleviating their financial burden i.e NSITf (Nigerian Social Insurance Trust Fund). In conjuction...

Other Essays Like Social and Economic Benefits of Insurance

How Successful Were the Labour Government Reforms of 1945-51 in Improving Social and Economic Conditions?

878 words - 4 pages the money to fund this, but Labour found the money to pay for these reforms even with their economic hardship. The Labour Government passed a variety of welfare and social reforms through parliament, such as the National Insurance Act in 1946 and the National Assistance Act in 1948. The National Insurance Act provided sickness and unemployment benefit, retirement benefit, and widow and maternity benefit; this act covered most eventualities, but

The Social, Economic, Legal And Moral Effects Of ICT On Society

684 words - 3 pages The Social, Economic, Legal and Moral Effects of ICT on Society I will be looking in detail at all aspects and results of ICT on society on a whole. By doing this I hope to grasp and look in detail at the benefits and misgivings on what seems to have been a global change which has an impact as large as that since the birth of the telephone by Alexander Graham bell. Undoubtedly communications technology has

Social-Cultural And Economic Factors Affecting The Vulnerability Of Women To Hiv/Aids

1777 words - 8 pages KENYA METHODIST UNIVERSITY DEPARTMENT OF HEALTH SYSTEMS MANAGEMENT AND MEDICAL EDUCATION COURSE: BSC. HEALTH SYSTEMS MANAGEMENT UNIT: HCSI 225-HIV/AIDS * Cultural, social and economic factors that increase women’s vulnerability to HIV/AIDS. Introduction Women, especially in sub-Saharan Africa not only have the highest HIV-prevalence rates, compared to men, but also are greatly affected by the social and economic constraints that

Understanding the Benefits of Engaging in Activities in Social Care

962 words - 4 pages UNDERSTAND THE BENEFITS OF ENGAGING IN ACTIVITIES IN SOCIAL CARE (ACT 202) UNIT 4222-676 1.1 If someone has a prolonged amount of inactivity it can really have a negative impact on both their mental and physical state. As people get older, the muscles start to deteriorate if they aren't used enough, so if someone is physically inactive then over time it will likely mean that they aren't able to be active or mobile. As for mentally they

Economic and Social Change in the Late 20th Century

1031 words - 5 pages Chapter 30: Economic and Social Change in the Late 20th Century Economic, cultural, and social changes have affected America greatly in the late twentieth century. The population since 1980 has become increasingly older, urban, diverse, southern, and western. Declining birth rates and rising life expectancy combined to produce an aging population. Between 1970 and 1990 most American financial and industrial growth occurred in the South and

The Benefits And Problems Of Outsourcing

1866 words - 8 pages would or could have been done by the company or parent company is done by an external company instead. Some of today’s workers have been in situations where their jobs have been outsourced, they have been utilised as contractors in an outsourced industry, and feel that their livelihoods have been threatened by outsourcing. In light of the tough economic times and the more innovative ways of acquiring staff outsourcing is becoming a favoured option

Clearly Explain and Discuss the Theory of Comparative Advantage. Given the Economic Benefits of Trade (According to the Above Theory) Why Do Some Countries (Give Examples) Attempt to Restrict Trade?

925 words - 4 pages Clearly explain and discuss the theory of comparative advantage. Given the economic benefits of trade (according to the above theory) why do some countries (give examples) attempt to restrict trade? Throughout the following essay I am going to be explaining and discussing in detail the theory of Comparative Advantage. The theory of Comparative Advantage is one the most fundamental and unchallenged laws in economics with many benefits to the

19th Century European Imperialism Data Based Essay; Identify And Explain The Political, Economic, And Social Causes Of European Imperialism In The 19th Century

3260 words - 14 pages final destiny. Economic circumstances and the demands of international affairs make the unity of India still more necessary". The Hindu Mahasabha was more frank and said: "India is one and indivisible and there will never be peace unless and until the separated areas are brought back into the Indian Union and made it its integral parts. 3Improvement in relation: The delicate nature of the unresolved disputes between Pakistan and India has always

The Business Model Describes How an Organization Creates, Delivers, and Capture Value Economic, Social, or Other Forms of Value. the Business Model Is Part of the Business Strategy

1181 words - 5 pages Inter American University of Puerto Rico Metropolitan Campus Economic and Administrative Sciences Division School of Business Administration Graduate Program Project Management Helps IT Group Grow More User-Friendly Study Case # 1 By: Karla M. Ramos Y00047695 BADM 5100 Profa. Olga Maldonado Our case study introduces an emergent problem faced by Capital Region Health Care (CRCH) in regards to its Information Technology Services

Education of Women and Socio-Economic Development

3546 words - 15 pages example, sub-Saharan Africa is one of the poorest regions of the world but the problem of excess mortality of females is much less severe there than in South Asia. Introduction Economic empowerment is the capacity of women and men to participate in, contribute to and benefit from growth processes in ways which recognise the value of their contributions, respect their dignity and make it possible to negotiate a fairer distribution of the benefits

Economic Differences of Morocco and England

1477 words - 6 pages Economics Essay Shady mostafa The inflation rate and economic growth are vital to any economy in the world, achieving good numbers in both of them could be the key in order for a country to build a sustainable economy that could develop to new heights. The two countries that I’m going to be talking about today are Morocco and the UK, even though it is very difficult to draw comparisons between them due to the massive economic

Related Papers

Value Communication – Economic Benefits And Psychological Benefits Reflection

1324 words - 6 pages advertisement. Economic benefits usually refer to those features that are measurable and can be transferred into quantified value among different brands. For example, profit, productivity, etc from the product. Psychological benefits is different from that of the economic benefits, they usually refer to the feeling you can get from the advertisement or product. For example, feeling of excitement when you watch a car racing advertisement. Reason for

The Social, Environmental And Economic Impact Of Tourism

2452 words - 10 pages natural, heritage, cultural experiences or economic activities. Tourism development often brings a range of benefits to host communities. Improved infrastructure (power, water, and telecommunications), access, services (banks, transport) and new investments, all serve to enhance the lifestyles of communities. . Community support will follow developments that service the community and provide ongoing benefits. Tourism can help foster a sense of

Principles Of Risk Management And Insurance

786 words - 4 pages no charge beyond the taxed they pay. The down side of these benefits are the long waits in the emergency rooms, the long-awaited appointments in the doctor’s offices and prolonged waits for chronic treatments such as cancer and other fatal diseases. In retrospect, this ruling could lead to “considerable business opportunity for U.S. Healthcare providers and insurance underwriters who can cover the Canadians healthcare needs. In practice, the

Economic, Social, And Political Chnage Worksheet

873 words - 4 pages University of Phoenix Material Economic, Social, and Political Change Worksheet Agricultural Revolution Respond to each of the following questions in two to three sentences: 1. What are the three most important factors contributing to the agricultural revolution in Europe? They increase the use and understanding of the traditional farming ways and techniques and put them towards more of a commercial use. They increase more land