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A Critical Review of Insurance Claims Management: A Study of Selected Insurance Companies in Nigeria

Author

Listed:
  • Tajudeen Olalekan Yusuf

    (Department of Actuarial Science and Insurance,Faculty of Business Administration, University of Lagos, Nigeria)

  • Sunday Stephen Ajemunigbohun

    (Department of Insurance, Faculty of Management Sciences, Lagos State University, Nigeria)

  • Gbenga Noah Alli

    (Department of Insurance, School of Business and Management Studies,)

Abstract

This study is an empirical investigation of insurance claims management among selected insurance companies in Nigeria. For this purpose, the researchers have been able to review critically the significant contribution of the claims processing in the management of insurance firms’ claims. This study conducted in Lagos metropolis, employed a descriptive survey design using random sampling technique and thus gathered data through the use of structured questionnaire. The sample population consisted of 127 respondents made up of claims managers and other members of staff within the surveyed companies. One sample T-test was adopted in the analysis of collected data. Empirical assessment reveal that the various claims handling processing have significant effects in the claims management processes of insurance companies. The findings from study confirm the significance of the various claims handling processing in claims management of insurance companies in Nigeria. It therefore recommends that claims manager should put forward strategic plans to ensuring that insurance claims complaint files are properly kept, monitored and handled for needs that may warrant its usefulness in the future. Also, state-of-the-art training mechanism should be put in place to enhance and improve the working pattern of a claim officer which invariably might affect the organizational efficiency of insurance companies and lastly, Government should harmonize their resources and technical knowhow with the Nigerian insurance industry in ensuring that insurance claims are well designed to curtail fraudulent claims experienced in the past.

Suggested Citation

  • Tajudeen Olalekan Yusuf & Sunday Stephen Ajemunigbohun & Gbenga Noah Alli, 2017. "A Critical Review of Insurance Claims Management: A Study of Selected Insurance Companies in Nigeria," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 67(2), pages 69-84, April-Jun.
    • Handle: RePEc:spd:journl:v:67:y:2017:i:2:p:69-84
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    File URL: https://spoudai.unipi.gr/index.php/spoudai/article/download/2593/2640/2593-3137-1-SM
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    References listed on IDEAS

    as
    1. Georges Dionne & Florence Giuliano & Pierre Picard, 2009. "Optimal Auditing with Scoring: Theory and Application to Insurance Fraud," Management Science, INFORMS, vol. 55(1), pages 58-70, January.
    2. G. Dionne & F. Giuliano & P. Picard, 2002. "Optimal auditing for insurance fraud," THEMA Working Papers 2002-32, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    3. Tajudeen Yusuf & Sunday Ajemunigbohun, 2015. "Effectiveness, Efficiency, And Promptness Of Claims Handling Process In The Nigerian Insurance Industry," European Journal of Business and Economics, Central Bohemia University, vol. 10(2), pages 6861:10-686, January.
    4. David S. Loughran, 2005. "Deterring Fraud: The Role of General Damage Awards in Automobile Insurance Settlements," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 72(4), pages 551-575, December.
    5. Crocker, Keith J & Tennyson, Sharon, 2002. "Insurance Fraud and Optimal Claims Settlement Strategies," Journal of Law and Economics, University of Chicago Press, vol. 45(2), pages 469-507, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Madu Frances & Isichei Ejikeme & Vincent Onodugo, 2021. "ICT as a Re-Engineering Strategy on Claim Settlement in Some Selected Insurance Companies In Nigeria: The Pandemic Experience," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 14(3), pages 88-97, December.
    2. Ajemunigbohun SUNDAY, 2018. "Policyholder’s Experience of Claims Settlement Methodologies in Motor Insurance Business in Nigeria," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 5-11.

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    More about this item

    Keywords

    claims; claims processing; claims management; insurance companies; Nigeria;
    All these keywords.

    JEL classification:

    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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