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This project is a  pure study on the appreciation of insurance discipline in our institution. The idea of this study is to ascertain the potential insurance buyer in the institute of management and technology, Enugu and also if the staff will purchase insurance from insurance Agency if established in the institute.

Moreover to carry out this investigation, the following objectives were formulated.

1.    To ascertain the potential insurance buyers in the institute of management and Technology (IMT). Enugu.

2.    To advice the institute on the importance of agency of office if it is established in I.M.T.

3.    To enhance the insurance services for the buyers and reduce bottleneck encountered with outside Agents and brokers.

4.    To reduce cost of insurance for the institute.

In order to achieve these aims, questionnaire, and oral interview were used and critically analyzed in chapter four.



Hardly have most people in Nigeria today actually understood the real place of marketing in the insurance industry. Often and again,  people misunderstood the function and role of brokers and agents in the insurance industry.

Before the subject matter at this project is tackled, it is necessary that a brief definition be given. Marketing could be defined as a function in business which aids selling, plus marketing research promotion, distribution, service product scheduling e.t.c.

In view of the fact that marketing is the brining out of what the customer needs, in actual fact and in most cases the client does not know or unaware of what he really needs whereby the remaining job is left for the agents and brokers to convince the propose about the product.

The main purpose of establishing insurance agency in a place is to create insurance awareness to the people at that particular area or environment. This bridges the gap between the people and the policy holders which will indemnify them against certain risks. To put up an insurance agency in an institution will also enable the community within the institution understand and learn of certain risks which they do not know. The establishment of insurance agency in IMT littler to becomes necessary considering the role at the institute in the training of manpower for insurance industry.

However, the more pressing problem is lack of awareness by the community of the importance and benefits at insurance despite its level of academic excellence.

Insurance agency is an organization whose main business is canvassing and selling insurance policies to the public. In this case there shall exist the competence to advise the proposers on the best policy suitable to them and the benefits attached. The agency is remunerated by way of commission from the insurer.

The major factors that determine the scope of operation of any agency are financial capability, consumer preference as well as the ability to meet with the government regulations on the establishment of insurance agency (insurance decree 58 of 1991 section 28).

It is a well know fact that the Nigerian insurance industry is still at its infancy age compared to its counterparts in the western countries. However, it has been observed with the aid of survey that the sell of insurance policy is highest within the academic circle of the Nigeria community.


The establishment of insurance agency department in the academic environment such as IMT will bring the insurance services of immense benefit to the staff of IMT and students of the department of insurance. It will also be a means of imbedding insurance sales potentially in the students of insurance as well as minimize the cost of insurance for the institute.

The insurance industry will also benefit from this because it is a primary means of building good insurance image.

The department will also utilize the outcome of this research as an evaluation criteria in determining the profitability of the venture and a workshop for the students in fulfilling the objectives of manpower development for insurance industry.


Having complied with the rules and regulations of the insurance supervisory authorities in which they operate, though there are still some problems in the establishment of insurance agency in the institution and the prominent among them are as follows:

1.    Public unawareness of the essence of insurance take time for the brokers and agents to be known in the public. To me, this is a very vital aspect of marketing in insurance industry.

2.    The institute does not have an insurance unit whose duties will be to advice both the staff and the institution on issues regarding their insurance needs.

3.    Most insurance agents are seen as cheats, therefore the community needs suc-an agency within their reach to get advise as well as transact all their insurance businesses.

4.    Also due to the poor image of insurance in Nigeria the people shy away from insurance transaction due to lack of confidence in insurance. Therefore the IMT community needs a trustworthy insurance agency with which they can transact insurance business and which also have a recognized office in the campus.


Developing implies growth this researcher study aim of establishing the factors that limit the growth of insurance agency in developing counters using Nigeria as an example.

The study will also offer solution to the hinders identified.


This research will be of paramount important and of immense benefit to the staff of IMT and students of the department of insurance. It will also be a means of imbedding insurance sales potentially in the students of insurance as well as minimize the cost of insurance for the institute.

The insurance industry will also benefits from this because it is a primary means of building good insurance image.


This aspect of the study looks at a way in finding out how the insurance agency has fared over the years. It would also be useful to look at some other things such as;

1.    The role of insurance agency and their function in IMT

2.    How effective has the establishment of insurance agency been to the insurance industry.

3.    How has the knowledge of the agency been received by the populace over the years.

4.    What is the Nigeria government doing to reduce lack of insurance consciousness or awareness on the part of an average African.

5.    What are the solution to the problems being encountered by insurance agency?



The study is restricted to the institute, staff of IMT, insurance companies and agencies in Enugu state.



Usually finance is a major problems encountered in the curse of this research which made it difficult for me to get the necessary information’s.  Also the reluctance of those interviewed in releasing information due to confidentiality.


Due to the political instability in Nigeria, a lot of things are moving as before and this is causing a lot of problem to the Nation.  Due to this cost of living now is very high even fuel and kerosine is no where to be seen and if seen  the cost will be so high.


There are four major problems that influence the establishment of insurance agency in IMT.


Legislation actually aids the insurance industry in form of tax concessions which encourages long term serigns. A major factor that influenced the development of insurance in IMT was the intervention of the government. The primary purpose of governmental control is the necessity to protect the interest of policy holder against possible exploitation by unscrupulous insurers. According to insurance decree, 1976, there were provisions on how insurance companies are to operate with regards to condition for registration made at operation, insurance policies accounts and audits amalgamation and transfer winding up, licensing and duties at insurers and agents, premium rates and commissions. Administration and settlement, miscellaneous and supplementary requirements and restriction can exert a considerable influence on the size and scope of the market.


The size density and distribution of population also demographic and socio economic factors all have direct influence on the market for insurance particularly life assurance. When real income, National income increases rapidly, there will be a large potential market for life assurance.


Aggressive competition and increasing costs of service and administration have led to the elimination of small unprofitable companies and to the difficulty in offering personal service. Thus insurance company amalgamated to exploit the economies of scale and to invest heavily in computers and other ancillary equipment in order to;

1.    Calculate cost accurately

2.    Achieve lower operational costs

iii. Expand their service capability


Insurance market faces certain inflation levels and high taxation which both reduce purchasing power. Severe bouts of inflation recently have increased the reluctance of the public to enter into long term financial commitments. Now insurance companies allow guaranteeing surrender values of the policy holders or allow hem borrow against surrender values to let him that his money is not completely tied up, therefore growing awareness of the need to budget as well as invest wisely. Sales of assurances – whole life and endowment policy designed to provide for savings declined. Instead policies with investment element attached e.g endowment with profit associated unit trusts emerged.


Many writers have dwelt on recommendations on how to improve the quality of insurance agency in IMT.

1.    Prompt claims settlements

To dispose  the myopic belief of the public that the insurance business is a certificated robbery or that insurers are anxious when collecting premiums but avoids settlement of claims at an insurance of the insuring public, insurance industry  should make a point of duty to settle claims brought before it as and when due.

2.            The insurance industry should intensify in its marketing activities, however marketing activity should be carried out with all amount of truth and honesty. The advertisement should carry out only all the qualities possessed by the policy and not those which are not fulfilled by the policy.

3.            Market segmentation and market research should be continuous cycle in the marketing research of insurance in IMT. To differentiate people, different strategy and marketing techniques used should be suitable to the segment concerned.

4.            Renewal department should be advocated. This will always play the role of informing policy holders of their agreement with the industry as regard the contract, reminding then when premium payment are due.

5.            Insurance industry should create insurance awareness by spreading their investment activities to the rural areas to assist in developing ventures.

Government should create a special body to serve as insurer market examines and supervisions to nullify or conform the strong allegation that premium income declared annually by insurers are inflated figure in collaboration with insurance companies auditors to win public confidence.



Certain terms has to be defined at the end of this study to enable the readers understand the words while reading the work.

Agents:     They are insurance intermediaries who are duly licensed are duly licensed and in a position to introduce business to the insurer.

Assurance: It means the same as insurance but is used in a move sured event like in life contracts.

Broker:      A person who buys and sells for others. They are regarded as professional expert. Also they are concerned with the placing of  insurance business.

Campus:    Grounds of schools, college or university.

Clients:      Customers who engage the services of the advertising agency

Commission:      The remuneration paid to an agent for the introduction of business, usually in the form of a percentage of the premium

Institution: An establishment organization for a special educational purpose.

Lecturer:   Persons who give lecturers. They are junior to the professor.

Policy:       Is a written statement of the terms of a contract of insurance.

Sample:     Any part of the population or figuratively if the population is a set then the         sample in a subset

Sum insured:     This is the amount covered by the life policy which becomes payable as a claim in the event of death or of the life policy.

Premium:  This is the price paid for the purchase of life assurance cover.

This material content is developed to serve as a GUIDE for students to conduct academic research

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