International Journal of Transportation Engineering and Technology
Volume 3, Issue 4, December 2017, Pages: 83-90
Received: Aug. 3, 2017;
Accepted: Aug. 25, 2017;
Published: Dec. 27, 2017
Views 1703 Downloads 63
Donatus Eberechukwu Onwuegbuchunam, Department of Maritime Management Technology, Federal University of Technology Owerri, Nigeria
Chinemerem Igboanusi, Department of Transport Management Technology, Federal University of Technology Owerri, Nigeria
Innocent Chuka Ogwude, Department of Transport Management Technology, Federal University of Technology Owerri, Nigeria
The performance of Nigeria insurance industry has been ranked below global standards and which ranking has implications on risk management in the maritime shipping sector. In this paper, the performance and operating environment of a sample of insurance firms (with marine risk portfolios) were empirically examined. Secondary data on earned premium income, indemnity paid, management expenses and total expenses representing performance indices of these firms over a period from 1974-2013 were collected for analysis of their operational performance. Qualitative data were also extracted from existing literature for Strengths, Weakness, Opportunities and Threats (SWOT) analysis to determine the attributes of operating environment of the insurance firms. An Analysis of Variance (ANOVA) model tests on the performance indices showed that the insurance firms earned more premium than indemnity paid out during the study period. Their management expenses however, exceeded amount of indemnity paid. In terms of challenges facing the firms, the SWOT analysis revealed prevalence of poor quality service delivery to insurance customers, customer distrust, inadequate technical manpower and unfavourable macro-economic environment. Prospects for growth of the industry were found favourable due to introduction of local content policy/cabotage shipping Acts and upgraded risk management framework. The paper recommends that more specific policy interventions be directed at complete removal of impediments in the operating environment of marine insurance firms since their performance outcome has implications on viability of shipping and related maritime businesses.
Donatus Eberechukwu Onwuegbuchunam,
Innocent Chuka Ogwude,
The Performance of Marine Insurance Firms in Nigeria: An Augmented SWOT Analysis, International Journal of Transportation Engineering and Technology.
Vol. 3, No. 4,
2017, pp. 83-90.
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
IMF (2013). International Monetary Fund Financial Sector Assessment Program Update. Washington, D. C.: International Monetary Fund. Available at: https://www.imf.org/external/pubs/ft/scr/2013/cr13145.pdf. Accessed 6/7/16.
Cheruiyot, J. R (2015) Challenges in the Uptake of Marine Cargo Insurance in Kenya. Unpublished MBA Thesis, University of Nairobi, Kenya. Available: http://erepository.uonbi.ac.ke/bitstream/handle/11295/93202/Rono. Accessed 12/06/17
Akhter, W and Zia-ur-Rehman, M (2011) Financial Performance of Pakistan Insurance Industry in Global. Far East Journal of Psychology and Business, 3(2), pp. 1-7, Available: https://www.researchgate.net/publication/227436429. Accessed 26/7/17
Nwokoro I. A and Ndikom, O.B.C (2013), An Assessment of the Contribution of Marine Insurance to The Development of Insurance Markets in Nigeria. Journal of Geography and Regional Planning Vol. 5(8), pp. 212-221.
Research and Market, (2009). Nigerian Insurance Report. Available: http://www.reportlink.com. Accessed 14/05/16.
Okumaga, A. (2010) Nigerian Insurers Can Take Advantage of Local Content Act. Available: http://www.vanguardngr.com. Accessed 20/11/16
Nse, J. (2015). Insurers Outline Strategies for Growth. The Guardian. Available: https://guardian.ng/business-services/insurance/insurers-outline-strategies-for-growth/ Accessed 10/06/17
BGL Insurance Report (2011): Promise Kept or Promise Deferred. Available: http://resourcedat.com/wpcontent/uploads/2011/11/BGL-Insurance_Report.pdf. Accessed 21/12/16.
Asinobi, N. and Ojo, O. (2014). Nigerian Insurance Sector Report: Beacon Shinning Forth. Lagos: Cardinal Stone Partners. Equity Research.
Onuoha, R. (2015) Nigeria: Economic Slowdown - Insurers Worry As Income from Premiums Nosedives. http://allafrica.com/stories/201510192192.html, Accessed 20/11/15
Tamplc.com (2016). The Science of TAM. TAM|UK Research. Available: http://www.tamplc.com/research.htm. Accessed 8/7/16.
FinIntell (2016). Unlocking the Potential of Maritime Industry. Available: http://www.myfinancialintelligence.com/transport/unlocking-potential-maritime-industry Accessed 7/7/16.
NCMB (2014) Marine Vessel Categorization Procedure Available: http://www.ncdmb.gov.ng/images/Guidelines/MVCP.pdf Accessed 8/7/16.
Niyi, L. (2015). Nigerian Ship Owners Partner with Greeks to Acquire 40 Ships. Premium Times. Available: http://www.premiumtimesng.com/news/more-news/185879-nigerian-ship-owners-partner-with-greeks-to-aquire-40-ships.html. Accessed 18/05/17
Osinuga, D (2016). The Challenges of the Nigerian Insurance Industry. Available: https://www.linkedin.com/pulse/challenges-nigerian-insurance-industry. Accessed on 12/02/17
Ujunwa, A. and Modebe, N. (2011). Repositioning Insurance Industry for Operational Efficiency: The Nigerian Case. Journal of Applied Finance & Banking, 1(3), pp.15-32.
Obasi, N. (2010) Policies, Challenges, Reforms and Nigerian Disposition to Insurance Contracts, The Fronteira Post, 1-6.
Adewale, M. (2015). New Government, New Life, New Hope: For Maritime Industry, A Better Nigeria. Nigerian Tribune. http://webcache.googleusercontent.com/ Accessed 5/07/16.
Tandice-bsolution.com (2011). NAICOM to Enforce Local Content Law in Insurance Sector. Available: http://tandice-bsolutions.com. Accessed 7/06/16
Mondaq.com. (2016). Maritime Claims, Practices, Procedures and Enforcements-Transport-Nigeria. Available at: http://www.mondaq.com/Nigeria/ Accessed 5/7/16