Volume 3, Issue 4, December 2017, Page: 83-90
The Performance of Marine Insurance Firms in Nigeria: An Augmented SWOT Analysis
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
Received: Aug. 3, 2017;       Accepted: Aug. 25, 2017;       Published: Dec. 27, 2017
DOI: 10.11648/j.ijtet.20170304.16      View  1552      Downloads  54
Abstract
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.
Keywords
Marine Insurance, SWOT Model, Premium, Indemnity, Performance Indices
To cite this article
Donatus Eberechukwu Onwuegbuchunam, Chinemerem Igboanusi, 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. doi: 10.11648/j.ijtet.20170304.16
Copyright
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.
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