Supervisory Regulation and Performance of Insurance Industry: A Parametric Quantitative Approach.
Publication Date: 10/02/2025
Author(s): Lawrence Wahua, Kenea Gile Fekadu.
Volume/Issue: Volume 8 , Issue 1 (2025)
Abstract:
Claims settlement by insurance companies is a hydra-headed issue in many third-world-and-emerging economies. Therefore, the need to increase the confidence of the insured in insurance coverage necessitated this study which is based on resource-capability theory, quantitative paradigm, and descriptive research design. Secondary data for 2010 – 2019 was collected from the 2019 edition of Nigerian Insurers Associations’ Digest. The independent variable is insurance regulations while performance is the dependent variable with two (proxies insurance claims settlement and insurance awareness). Based on relevant works, insurance regulation was measured with approved investments made by insurance companies; insurance awareness was measured with premium income paid by policyholders; and claims settlement was measured with insurance claims paid by insurance companies. Using inferential statistics, the work established that insurance regulation has significant positive association with claims settlement and insurance awareness; and insurance awareness equally has statistical positive association with insurance claims settlements. The study calls for increased insurance regulation by the Supervisors/Regulators; and aggressive awareness campaigns by insurance companies in order to reduce the hydra-headed problem of non-claims settlements by insurance companies in emerging and third world countries.
Keywords:
Insurance awareness, insurance industry, insurance performance, insurance regulation, resource capability theory, Sub-Saharan Africa
