CHAPTER TWO

REVIEW OF LITERATURE

2.1INTRODUCTION
The world is undergoing a resolution in information and communication Technology which is
referred to as the digital resolution. The revolution is already transforming social and economic
life and is moving at near lighting speed. The electronic based are used to collect, store, process
and package information and access to knowledge. The industry electronic publishing
information service broadcasting and management information system. The telecommunication
Technology allows information to interact with other as well as remote device in networks
thereby permitting users to access database and communication with other users over long
distance. The conveyance of ICT and telecommunication Techn010U has this greatly enhanced
the existing service industries. It has increased the productivity quality and efficient of business
management administration education and health core service. Insurance being an integral and
vital of the economy has necessarily contributed to the growth of the Nigeria economy and as the
system of government it is likely challenges which must be properly handled facilitate the
technological development of the the nation at large. The application of to face some in orders to
industry and information, communication device in insurance industries has strandline and
increased the efficiency of production life cycle and adding that the product were faster made
with minimal defect constraints production life cycle were assured manpower cost were
minimized and redundancy was eliminated and services will be delivered effectively. Bill gate,
the visionary chief executive and co-founder of Microsoft Corporation, predict the use of
technology and we must take seriously in the insurance industry. These days you electronically
market your product directly with seller and such the role of traditional intermediaries maybe
reduced or even eliminated. These intermediaries will perform the function that includes;
matching buyers with sellers, providing product information, System and marketing information
to sellers, Integrating the components of consumer process, managing physical deliveries and
insuring the integrity of the market.

2.2 HISTORICAL BACKGROUND OF THE TOPIC

According to Falegan (2012), the Nigeria insurance industry has passed through three
distinguishable phases. The initial open door phase was roughly between 1900 and 1960. The
transitional phase which conceded with the first national development plan period was between
1962 and 1969, and the takeoff phase started in 1990 and is still on till this day.
Perhaps another phase is the recapitalization and consolidation phase of recent which has been
characterized by stringent measures from government. Nonetheless, most insurance companies in
Nigeria have adopted the use of information and communication Technological tools at varying
degree, with little success for most. According to A' Brien (2013), there are many ways that
organizations may view the use of information technology depending on their goals aims and
objectives, organizations may use information and communication technological tools to
strategies. They could as will be content to use ICT to support efficient everyday operation. The
process of information techn010U adoption and use in critical. (Kara Hanna et a l, 2010). The
seamless storage retrieved, sorting, faltering distribution, marketing and certain of new products
and services, business, large or small rely on quality information for just about everything they
do (Mescon et al, 2012) and today computer play a control rote in communication especially
with

business.

2.3 THE CURRENT LITERATURE BASED ON THE RELEVANT VARIABLES OF THE

TOPIC
As the world information order grows, it is only expected that the different industrial sector grow
alongside, these days, no meaningful business can be done without the reliance on technology.
Gone are the days when manual paper documentation was relied upon to do insurance
transaction. These days, any insurance company that is yet to fully computerize its operation is
not fit to be in business. Insurance in Nigeria has a tale of woes over us almost one decade of
existence. Some of the greatest challenges confronting the industry are: Poor image Lack of
public confidence Suspicion, and Perceived non-payment of claims among others. The
importance of insurance is felt in everywhere of life. Life involves risk and while it is often
unavoidable, you can certainly take steps to minimize its effects. Many individuals opt to buy
insurance to protect their needs. Insurance it protects the forms claims arising out of professional

negligence or failure to perform professional duties. It insurance firms also covers errors and
omissions that result in loss of client data, system failure, claims of non-performance or careless
overselling of service. Information technology works in diverse ways in insurance. The provision
of information technology services includes computer consultancy, data base management,
hardware networking, web design and development and internet service. Companies providing
internet service can also be subject to substantial claims resulting from allegations of copyright
and trade mark infringement or the effect of computer viruses. However it is important to note
that most information Technology liability policies are written on claims made basis. This
means that you must have an insurance policy in place at the time a claim is made against you,
rather than the time a claim is made against you, rather than the time alleged act, error or
omission is committed. Therefore, the policy in place at the time a claim is made against you is
the policy that unreasoned to that clam, rather than a policy in place at the time of the alleged act,
error

or

omission.

(Wilson

Intisar,

2010).

2.4 HISTORICAL BACKGROUND OF THE CASE STUDENT

Technology in insurance emanated from the need to cope with the fast growing competition
among insurance companies. It is also served from the effort of National insurance commission
(NIC) to introduce information and communication Techn010U (ICT) into the insurance business
and operation. However, it is patient to mention that computer came into Nigeria in the early
sixties through international Business machine (IBM), the initial problem of full auto nation in
insurance operation was that insurance companies and businessman had ill-feelings about the
computerization of insurance operations. Also technical knowledge about computer and qualified
operators were tacking. Moreover, the huge cost of machine installation was a different and lack
of conductive environment such as air conditioner, was a limitation faction. Nowadays, the
development of each insurance companies Insurance in Nigeria, are therefore investing large part
of their income on technology so as to meet modern day insurance operation.
SUMMARY OF THE CHAPTER

1. INFORMATION TECHNOLOGY: Using computer to process data for storage, operation,

retrieved and dissemination of information.
2. FOREIGN TRANSACTION: Computer are being used to facilitate the exchange of
information current and timely and document across frontiers of Nafun's boundaries.
3. WORD PROCESSION: The word processing can be defined as
the manipulation (by using machines) of characters words, sentences paragraphs and documents
for communication purpose, word processor is a hardware programmed for manipulation
processed word processing equipment, however, comes in varieties which are
i. Electronic typewriter
ii. Dedicated word processor
iii. Micro computer
FEATURES OF WORD PROCESSING TECHNOLOGY
Peculiar feature which make word processing technology more attractive and efficient include;
i.
ii.

Editing: This is known as text manipulation that is, changing

High printing Quality: Documents produced using word processing are of high quality

iii.
iv.

and this depends on types of printer and font (writing styles) used.
Storage: Document can be stored for future use
Graphics: It designs charts, tables and diagrams Mathematics Functions: Billions of
mathematical corrupt can be carried out with a second.

2.2.4 INFORMATION AND COMMUNICATION TECHNOLOGY

Information and communication technology (ICT) over the years have become an important tool
not only for business but also for government and personal use. The ICT revolution has not only
altered the way we live, work, conduct business and recreate, but has also created new
infrastructure for business, scientific advancement and social interactions . (UNELA, 2011). This
revolution has fueled the proliferation of new media and the globalization of business and
finance. The insurance industry is very important sector for any economy as it provides insurance
policies, and collection of specified fees called premium with many policies on the bouquet list
of most insurance companies and the ever rising numbers of customer and policy holders, it has

become virtually impossible for must insurance companies to operation effectively and
efficiently without the adoption and use if ICTS.
2.2.5 BENEFITS OF INFORMATION AND COMMUNICATION
TECHNOLOGY TO THE INSURANCE COMPANY
Information Technology provides companies with the ability to process large amounts of
information and do so in a way which presents the information in a clear and concise manner
to employees anticipation benefits of implementing an information technology system include
improvement in productivity better profit performance and a higher degree of accuracy among
information which the form the ability to share information arnong employees is also enhanced.
Computers have become smaller over the decades and now personal computers are often linked
together. across wide geographic areas to create network. These networks provides additional
benefits to organizational performance, such as data and integrity and enhanced productivity by
using a broadband networks users can share a greater range of voice, data and video services,
including video conferencing software has kept up with advancement in hardware so that today's
office productivity packages make it easy to create multimedia 'document' which can be sent
across an internet network, or the internet. Productivity typically improves in organizations
which implement information technology, although there can be some less of productivity during
the "learning curve" Data integrity is greater when companies take advantage of the benefits that
information technology offers and displaced employees can often be relocated to the MIS
department (which now typically has a greater demand for workers).
The benefits of information technology to the insurance industry can be summarizing as follows.
(i) Accuracy
(ii). Elimination of drudgery
(iii) Speed
(iv) Electronic saving of office space
(v) Enhanced communication
(vi) Email
(vii) Convenience
(viii) It enables one on one marketing

(ix) Accessibility
2.2.6 PROCEDURE USED TO SUPPLY PROBLEMS SOLVING
INFORMATION IN INSURANCE INDUSTRY
The purpose of programming analysis is to breakdown the system specification into the very
detailed arithmetic and logic operation required in solving the problem. In the viewed of Oni
and Olaleye (2012) two common tools used for analysis purpose in the insurance sector are the
program flour chart and the decision table. The procedure that is generally used to make it
possible for computers in insurance industry to supply problems solving information involves the
following;
(i) Program preparation
(ii) Program-r debugging and testing
(iii) Problem analysis
(iv) Program documentation and maintenance
(v) Conversion of instruction into machine sensible form
(vi) Definition of the problems and objectives.
2.2.7
i.

ROLES OF INSURANCE IN AN ECONOMY

One of the indict for development of an economy is the size and maturity of its insurance
industry. This is because the insurance plays a very important role in the mobilization and
civilization of resources in an economy. It also acts as the absorber of the risk and
uncertainties normally associated with economic activities, the absence of a market for
which can greatly reduce the growth of economic activities. The following are the

ii.

important roles of insurance economy.

Development of capital market: The insurance industry constitute on the institutional
investor in the capital market thereby providing a channel for the sourcing of funds by

iii.

both the public and private sector of the economy.

Serves as means of saving: The activities of the industry particularly life assurance
business have encourage the mobilization of saving which otherwise may not have been

channeled to any productive use such mobilized savings constitute an important source of
iv.

source of long-term investable funds in the economy.

Reduction in the cost of social benefits: This is an indirect benefit to the society insurance

v.

scheme supplement the state benefit.

Loss prevention: By action taken or recommendations made during the course of this
business, insurance have a considerable effect on the reduction of losses both in their

vi.

incident and extent.

Reduction in the outflow of resources from the country through the retention of insurance
reinsurance premium within the economy with a consequent positive effect on the
country balance of payment.

2.2.81NFORMATION TECHNOLOGY AREA IN RELATIONS TO INSURANCE BUSINESS

Computerized insurance industry can instantly view important investment, legal and captured
data including investment yield, cash flows, position, new product stations marketing data and
other information electing with operation and profitability. Important are of information
Technology application therefore include:
i.

Underwriting department: This department can operate at peak efficiency using

information technology. Rapid information indexing and retrieval are made possible.
Underwriter can quickly acquire and analyze gaze history files, perform policy tracking,
prepare disability income quote and rate grow up contract and proposal. Underwriting
department can be said to be department that underwrite risk in their firm and determine
how those ask are to be rate as well as determining the premium payable. So, with
information technology, all needed information will be ready to retrieved as well as when
dairies, ail needed information as regards the subject matter of insurance will be retrieved

ii.

easily.
Claims department: Computer can ensure the administrative efficiency of the claim

iii.

department through effective information management.

a) Calculation of benefits and processing of proof of claims
b) Validation of proper claimants
c) Settlement of claim within a meaningful time or period.
Marketing department: It is able to obtain prompt information of sales and salesmen
performance. Product performance can also be promptly analyzed and corrective action
will be taken. Analysis of production by sales men and areas can also be done. The
marketing department can without delay develop new products (policy) to maintain both
existing production and customers.

iv.

Actuarial Department: Information Technology can help the department to determine

product rate structure and establishing evaluation.

2.2.9. EFFECT OF TECHNOLOGY ON INSURANCE OPERATION

The global emergence of new technological products is bringing efficiency into insurance
operations conscious of the need to satisfy customers, Sovereign Trust Insurance plc (STI) has
introduced various computerization methods in order to reduce human error; wasting of customer
and human labour. Hence the management has more time for planning management and
marketing thereby increasing efficiency in terms of operation. Moreover, with the successfully
launched of different software Agiles software which was established in 2002, They develop and
market software licence management solutions that are relied on by software and hardware
system vendors in a wide range of industries and market segment Aligis solution are particularly
silted to agile companies with complex licensing requirement in the enterprise. Agilis is self
funded and profitable with zero debt (vinay sabharival 2010).
USES OF AGILIS SOFTWARE IN GREAT NIGERIA INSURANCE
(GNI) Agilis software is an inter software upset in great Nigeria Insurance that can be access
anywhere in the world. Agilis software which is a comprehensive package of general insurance,
financial, Human resources, payroll, workflow, document, management and management
information software system. The deployed general insurance system has been built to make the
largest set of business requirement in the general insurance field. The system has been designed
to automate the general insurance life cycles, reduce operational cost, speed up work, and
maintain historical data and it ensure a high level of security. The new system provides a
collaborative environment for information management across the company's branches and
departments. It allows users to capture up to the minute information whenever required.
The system in addition, integrates with the financial and human resources modules of Agilis
business manager to maintain the needed information and account updates. The package come
along with advanced workflow, document management and management information system to
complete the automation of the Great Nigeria Insurance Developed using latest object oriented
programming language and oracle data base. The web based applications allow great Nigeria
Insurance employees to define insurance products of multiple classes of business. Automatically,
calculates rate premiums through the rating engine, and ran daily insurance transaction in an

efficient and simple manner. Through the systems location, independent interface of the
company which can efficiently handle greater volumes of operations and smoothly manage work
processes across a will range of offices in Nigeria. The software package also provides users
with advanced real time reports and statistics in the form of charts chagrin and management dash
boards to analyses operational performance and support the decision making process.
2.2.10. PROSPECT OF TECHNOLOGY ON INSURANCE OPERATION
As at now, the use of technological products in insurance operation is not fully effective in
Nigeria. Only few insurance companies with their branches fully utilize it. The industry rated as
well as deterring the premium payable. So, with information techn010U, all needed information
will be easy to retrieve as well as when claim arises, all needed information as regards the
subject matter of insurance will be retrieved easily.
2.2.11 LIMITATION OF TECHNOLOGY
The limitation of information technology can be found in various ways and they are;
i.

Redundancy: High level of unemployment causes many social problems. Also, the world

ii.

demand for goods and services is declining, so fewer people are satisfied.
Social unrest: The end result of redundancy which stemmed from computerization is

iii.

social unrest, which flows from lack of financial and material resources.
Unemployment: The primary stemming from the application in insurance industry is the
increasing level; of Information Techn010U controlled unemployment. administrative
activities which supersedes the old working material. This, the use of ICT leads to
reduction in the numbers of manpower, because they could not use a computer system
effectively.
Poor infrastructure facilities to support system connection which can be:

Power failure
Lack of spare parts.
2.3 CURRENT LITERATURE BASED ON RELEVANT VARIABLE OF THE MODEL Aluko
(2011) discussed in his book titled "Insurance and Technology" that with the use of
technology, I am optimistic that the insurance sector in Nigeria and Africa is becoming
more competitive. They are therefore customer focused. Leveraging on their technology and
services as the local partner to derive patronage from industry operations. Fisher and kenny

(2012) suggest that organization infuse information system into their operation so as to
enhance

competitiveness

and

facilitate

business

growth

and

success.

Also, Lauden and Lauden (2010) believe that information system are embedded in
organization and are the result of standard operating procedure workflow, organizational
culture and structure. Although organizations have different information needs they all
strive for competitive advantage through continuous, improvement. Falegan (2011) Nigeria
insurance industry has passed through three distinguishable, phase, the initial open door,
was roughly between 1900 and 1960. The transitional phase which conceded with the first
national development plan period was between 1962 and 1969 and the take off phase
CURRENT LITERATURE BASED ON RELEVANT VARIABLE OF THE MODEL
Aluko (2011) discussed in his book titled "Insurance and Technology" that with the use of
technology, I am optimistic that the insurance sector in Nigeria and Africa is becoming
more competitive. They are therefore customer focused. Leveraging on their technology and
services as the local partner to derive patronage from industry operations. Fisher and kenny
(2012) suggest that organization infuse information system into their operation so as to
enhance competitiveness and facilitate business growth and success. Also, Lauden and
Lauden (2010) believe that information system are embedded in organization and are the
result of standard operating procedure workflow, organizational culture and structure.
Although organizations have different information needs they all strive for competitive
advantage

through

continuous, improvement. Falegan (2011) Nigeria insurance industry has passed

through three distinguishable, phase, the initial open door, was roughly between 1900 and
1960. The transitional phase which conceded with the first national development plan
period was between 1962 and 1969 and the take off phase
REFERENCES
Adekunle, Tajudeen, A. Sunday, (2013). "The role of Information Technology in Customer
Service Delivery and Form Performance. Industry". International Evidence from Nigeria's
Insurance Journal of Marketing studies, Vol 5, No: 4, 2013. Apampa, O. (2010). "Evaluation of
ICT penetration in selected companies". The Laos Experience Journal of inSurance Compulsory
and Information science Emergency Tends in Aluko K. (2011). "Insurance and Technology"

Lagos Smart Enterprise Industry. Falegan (2010). "Computing Evaluation of ICT Penetration in
in Nigeria". Journal, /org. Vol Insurance Industry Fisher, B., Kenny, (2012). "Information System
and Insurance
Business in Nigeria". Transeampus org/ 10 Dec. 2012. Jimoh, (2012). "Information System and
Insurance Business in Nigeria". Journal 2012: Olufawo, S. (1999). "Life Assurance Practice in
Nigeria Lagos" Hendnos Ventures. Oni and Olaleye (2012). "View of Programming Insurance
System" Journal/ Vol. 1 (2012).

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION
This chapter is directed at examining the effect of information techn010U in the effective
insurance services delivery in Nigeria. The techniques, instruments and procedure used in the
collection and analysis of data were chosen because they
best seem to enhance the investigation and bring out the effect of information technolog in the
effective insurance services delivery in Nigeria.
3.2 RESTATEMENT OF RESEARCH QUESATION
RESEARCH QUESTIONS
Does the use of IT positively affect the performance efficiency of insurance organization
in Nigeria?
Does information technology speeds up delivery in the insurance operations?
is there any significant relationship between information technology and insurance
service delivery?
Does information technology increase customer patronage in insurance industries?
Does technology involvement in insurance service constitute a firm or marketing strateo?
Does public benefit in uses of information technology in delivery insurance services
delivery?
3.3 RESEARCH METHOD AND DESIGN
A research design is a systematic plan to study a scientific problem. It also explains the study
type i.e. descriptive correlation, semi experimental etc. in this study, the sample was drawn using
random sampling method to avoid any element of bias or subjectivity.

However, information will be conducted from representative sample of the population rather than
from every member of the population survey research will be used.
3.4 DATA COLLECTION METHOD
For the purpose of this study, primary and secondary sources of data collections methods are
used. Under primary data, a typical adaptive questionnaire separated into section A and B were
developed through information on the satisfaction derived from the attitudes attached to each
type of the policies plan are gathered from policyholder. The section A contains demographic
employment status, educational level and annual income description while section B is furnished
with the information of life insurance.
The questionnaires were randomly distributed for administered among self employed
and salary each policyholder including both private and public section. Secondary data: these are
data being collected from other agencies or body e.g Journals, library, internet, mass media.
3.5 CHARACTERISTICS OF THE STUDY POPULATION
The population under review entails the staff on managerial grade and to the junior grade. These
group of staff falls within the various segments of Royal Exchange Nigeria PLC Lagos. The
study was free and fair, there was no discrimination regards age, status, sex, single and married,
male and female were considered. The target population their research project is personal from
insurance industry, insuring public non insuring public and non practitioners.
3.6 SAMPLING DESIGN, PROCEDURES AND SIZE
The probability sampling gives equal opportunity to every members of the population to be
selected under this. It is not possible to study the whole population; certain portion of the
population knows as SAMPLE is studied. In this study, using the sample RANDOM
SAMPLING will be most preferable through which generalization about the population are
made.
3.7 DESCRIPTION OF DATA COLLECTION INSTRUMENT
Research instrument refers to the device that the researcher used for collecting data during
instrumentation (that is the process of collecting data). In his study the research instrument-that
will be used is the

QUESTIONNAIRE. It exists in two forms closed or structured and opened or unstructured

Questionnaire is selected. It is The study was free and fair, there was no discrimination regards
age, status, sex, single and married, male and female were considered. The target population their
research project is personal from insurance industry, insuring public non insuring public and
non practitioners. like a selection types of objective test where a question is asked and a
number options are provided from which each respondent is expected to pick or tick the most
appropriate as far as He/ She is concerned. Therefore, it offers the respondents a choice among
alternatives.
3.8 ADMINISTRATION OF DATA COLLECTION INSTRUMENT
The research instrument used in the questionnaire and it is divided into two, the introduction
which consist of bio data i.e. the age, sex, qualification and the main subject matter is
the second pact of the questionnaire which consist of question relating to the subject matter that
is the effect of information technology on the effective insurance service delivery in Nigeria.
The method of measuring variable is agreed, disagreed, strongly agreed, strongly disagreed,
undecided. The sampling unit is represented by the insurance companies in Nigeria. While the
sampling number is 150 which entails 80 questions given to insurance company, 40 given to
insuring public and 30 given to non practitioners. 112 questionnaires were retrieved and 38
questionnaires were not retrieved.
The questionnaires were distributed during the working hours through personal contact and with
operation of the respondent enhanced quick result to the exercise.
3.9 METHOD OF DATA ANALYSIS
The analytical tools employ in carrying out this research work includes:

Data presentation carry out in tabular form

Data analysis carry out on frequencies basis

Data analysis carry out on percentage basis

Hypothesis testing is chi square method.

Formula for chi square method

X2= (FO - Fe)2

Where = X2=chi square

Fo = Observed frequencies
Fe = Expected frequencies
= Summation

REFERENCES
Bisira H.O. et al (2012). "Descriptive Statistics Revised Edition, Ketu Lagos Best Century
Designs"
Fagbohungbe, O.B. (2011). "The Basic of Research Method010U" [3ed]. Somolu Lagos: Kotleb
Publishes.
Faruide D. A. (2010) Descriptive Statistics (Revised Edition), Lagos State Polytechnic Ikorodu
Lagos.
Asikan (2010). Research " Methodology is Behavioural Science" Long man Nigeria Plc, Lagos
Nigeria.

CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
4.1 INTRODUCTION
This chapter gives clear indication of analysis of responses in the questionnaire which will be
used in testing the formulated hypothesis on the effect of information technology on the effective
insurance service delivery in Nigeria. And ability of understanding of the project statistical tool
such as chi-square and percentage were employed.
The analysis is in two pronged, the first aspect attempts a general data analysis through various
respondents opinion on the subject matter of the research while the other aspect tends to
analyses the various hypothesis propounded to address the subject matter of the research
4.2 RESPONDENT CHARACTERISTICS AND CLASSIFICATION
Response to the questionnaire is used as research instrument and was analyzed with the use of
tables and percentage.
Table 1: analysis of questionnaire administered
Question
Retrieved
Not retrieved
Total
Questionnaire administrative

frequency
112
38
150

percentage
74.66%
25.34%
100%

The above table indicate that 150 research questions were distributed out of which 112
questionnaire were retrieved while 38 questions were not retrieved, which formed basis on which
the research work carried out.
Table 2: Age distribution
Age group
frequency
22-25years
15
26-30years
24
31-40years
30
41 and above
35
Unspecified
6
Total
112
Source: question administration 2014

percentage
13.39%
21.43%
26.79%
31.25%
5.36%
100%

Interpretation: majority of the respondents is (13.39%) were between age 22-25 years followed
by 24 (21.43%) in the years 26-30,(31.25%) and (5.36%) did not specify their age.
sex

frequency

percentage

Male
67
Female
45
Unspecified
Total
112
Source: Questionnaire Administrative 2014

59.82%
40.18%
100%

Interpretation: majority of the respondents is 67 (59.82%) were males, while 45 (40.18%) were
female.
Table 4: Educational Qualification
Educational qualification
frequency
HND
39
BSC
30
PGD
12
OND
15
OTHERS
10
UNSPECIFIED
6
TOTAL
112
Source: Questionnaire administrative 2014

percentage
34:82%
36.75%
10.71%
13.39%
8.93%
5.36%
100%

Interpretation: From the above table 39 (34.82%) respondents had Higher National Diploma
(HND), 30 (26.79%) were Bachelor of Science Degree Holders (PGD) 15 (13.39%) were
Ordinary National Diploma (OND), 10 (8.93%) had other qualifications and 6 (5.36%) did not
specify.
Table 5: Work Experience
Work experience
No of respondents
Below 5 years
37
6-10years
40
11 years and above
35
Total
112
Source: Questionnaire Administration 2014

Percentage
33.04%
33.71%
31.25%
100%

Interpretation: The work experience had by each respondents of the questionnaire are from 5
years work experience which is 37 (33.04%) 6-10 years 40 (35.71%) and 11 and above 35
(31.25%).

4.3 PRESENTATION AND ANALYSIS OF DATA, ACCORDING

TO RESEARCH QUESTIONS
Statement 1
The use of IT positively affect the performance efficiency of insurance organizations in Nigeria.
Table 6:
Option
No of respondent
Agreed
49
Disagreed
3
Strongly disagreed
Undecided
Strongly agreed
60
Total
112
Source: Questionnaire administration 2014

Percentage
43.75%
2.68%
53.57%
100%

Interpretation: From the above table 49 (48.75%) agreed that the use Of IT positively affect the
performance efficiency of insurance organization in Nigeria 2 (2.68%) respondents disagreed,
while 60 (53.57%) strongly agreed.
Statement 2: information technology speeds up delivery in insurance operation.
Table 7
option
No of respondent
option
60
Disagreed
Strongly disagreed
47
Undecided
5
Strongly agreed
Total
112
Source: Questionnaire administration 2014

Percentage
53.57%
41.96%
4.46%
100%

Interpretation: From the above table 60 (53.57%) of the respondents agreed that information
technology speeds up delivery in the insurance operation 47 (41.96%) of the respondents
strongly agreed, 5 (4.46%) undecided.

Statement: 3
There is significant relationship between information technology and insurance delivery.

Tables 8
Option
No of respondent
Agreed
56
Disagreed
Strongly disagreed
52
Undecided
4
Strongly agreed
Total
112
Source: Questionnaire administration 2014

Percentage
50%
46.43%
3.57%
100%

Interpretation: From the above table56 (50%) of the respondents agreed that information
technology speeds up delivery in the insurance operation 52 (46.43%) of the respondents
strongly agreed, 4 (3.57%) undecided.
Statement 4:
Information technology increase customer patronage in an insurance industeies.
Table 9
Option
No of respondent
Agreed
49
Disagreed
Strongly disagreed
63
Undecided
Strongly agreed
Total
112
Source: Questionnaire administration 2014

Percentage
43.75%
56.25%
100%

Interpretation: The table above shows that 49 (43.75%) respondents agreed that the information
technology increase customer patronage in an insurance industry while 63 (56.25%) strongly
agreed.
Statement:5
Technology involvement in insurance service constitute a firm of marketing strategy
Option
No of respondent
Percentage
Agreed
60
53.57%
Disagreed
Strongly disagreed
48
42.86%
Undecided
2
1.78%
Strongly agreed
2
1.78%
Total
112
100%
Source: Questionnaire administration 2014

Interpretation: The above table shows that 60 (53.57%) agreed that technology involvement in
insurance service constitute a firm of marketing strategy, while 48 (42.86%) of the respondents
strongly agreed, 2 (1.78%) strongly disagreed. 2 (1.78%) undecided.
Statement:6
Public benefit in uses of information technology in delivery insurance services.
Table 11
Option
No of respondent
Percentage
Agreed
80
71.43%
Disagreed
2
1.78%
Strongly disagreed
30
26.79%
Undecided
Strongly agreed
Total
112
100%
Source: Questionnaire administration 2014
Interpretation: The table above shows that 80 (71.43%) respondents agreed that the information
technology in delivery insurance service while 2(1.78%) disagreed and 30(26.29%) of the
respondent strongly agreed.
4.4 PRESENTATION AND ANALYSIS OF DATA ACCORDING TO
RESEARCH HYPOTHESES
Testing of hypotheses
Hypothesis one testing
Hi:
Information techn010U does not speed up delivery in the insurance operation.
Hi:
Information technology speeds up delivery in the insurance operation.
s/n

Statement

Sa

SD

Total

Information technology speed

up delivery in the insurance
operation

47

60

112

Option

47

37.33

9.97

93.51

(O.)2

2.50

60

37.33

22.67

513.93

13.77

5
112

37.33
37.33

32.33

1,045.23

27.20
43.47

Since X2 cal = 43.47

O.

(O.)3

9 = 0.05 level of significant (x)

Degree of freedom = (r-l) (c-1)
r = (3-1) = 2
tab = (0.05,2) = 5.99
DECISION RULE
Since X2 cal is greater than X2 tab that is
cal > tab i.e 43.47 > 5.9
Therefore, the null hypotheses (Ho) is rejected and alternative
hypothesis (Hi) is accepted. This suggests that information
technology speeds up delivery in the insurance operation.
Hypothesis Two Testing
Hi: There is no significance relationship between
information and insurance service delivery.
Hi: There is significant relationship between information
and insurance service delivery.
s/n

Statement

Sa

SD

Total

There is significant relationship

between information
technology and insurance
delivery

56

52

112

Option
1

56

37.33

18.67

348.57

(O.)2

7.34

52

37.33

14.67

221.21

5.77

37.33

33.33

1,110.89

29.76

112

O.

(O.)3

44.87

Since x2 cal = 44.87

A = 0.05 level of significant (X)
Degree of freedom = (r-l) (r-l)
r = (3-1) = 2
tab = (0.05,2) = 5.99
Decision rule
Since x2 calculated is greater than X2 tab that is
cal > tab i.e 44.87 > 5.99
Therefore, Ho is rejected and Hi is accepted.
This suggest that there is significant relationship between
information techn010&Y and insurance service delivery
Hypothesis Three Testing
Ho: Information technology does not increase customer patronage in some insurance industries
Ho: Information technology increase customer patronage in some insurance industries.
s/n
1

Statement
Information technology
increase customer patronage in
up insurance industry

Option

A
49

D
-

Sa
63

SD
-

O.

(O.)3

Total
112

49

56

49

(O.)2

0.875

63

56

36

0.64

112

Since X2 cal=1.52

U
-

1.52

A = 005 level of significant (x)

Degree of freedom = (r-l) (c- 1)
r = (2-1)-1
tab= (0051) = 3.84
Decision Rule
Since X2 calculated is greater than X2 tab that is
cal > tab i.e 1.42 > 3.84
Therefore, Ho is rejected and Hi is accepted the + calculated
is greater than t tabulated. This suggests that information
technology increase customer patronage in an insurance industry.
4.5 DISCUSSION OF FINDINGS
From the response of the respondents in the questionnaire is sound that the effect of information
technology on effective insurance service delivery in Nigeria. Generally, respondents agreed that
information technology adoption in insurance industry have positive effect in effective
delivery of service.
The respondent also agreed that information technology speeds up delivery of service in the
insurance operation in Nigeria. There is significant relationship between information technology
and insurance service delivery, information technology increase customer patronage in an
insurance industry. However, the results also show that ICT adoption is not a substitute for
effective regulation of the insurance industry, insurance companies do not invest heavily on
training of personnel on usage and handling of ICT facilities insurance
companies do not update their ICT facilities regularly: and ICT does not reduce paper work in
insurance companies in Nigeria. Consequently, the regulatory authority (NAICOM) needs to
strengthen its monitoring and supervisory activities to ensure effective regulation of the industry,
likewise, there is need for insurance companies to regularly update their ICT facilities, and invest
more on training of personnel on usage and handling of ICT facilities.

REFERENCES
Fagbohungbe, O.B. (2002); Research Methods for Nigeria
Tertiary Institutions. Lagos Consultant.
Famuyiwa, L.O. (2001); Introduction of Statistics (Basic Concept
and Application). Lagos Wuwer

CHAPTER FIVE
SUMMARY, CONCLUSION AND REPOMMENDATION
5.1 SUMMARY OF THE FINDINGS
This presentation has been a report, of research on the effect of information technology on
effective insurance service delivery in Nigeria. The meaning of technology device were
explained and also the effect on insurance service delivery % , the prominent view of some
people in the information technology department (IT) were documented. However, the study
found that in most companies, customers find it difficult to perform vital transactions on line
without necessarily being present physically at the companies. This is because many customers
have not bought into idea of the use of as means of reaching their respective insurance
companies. Furthermore, responses from the various companies show further that many
insurance companies have started relating with their customers via IT networks, and have also
encouraged customers by reaching out to them through electronic mails, text messages and the
likes. The study also found that a good number of the insurance companies are of the opinion
that it has aided their performance level.
5.2 CONCLUSION DRAWN FROM THE FINDINGS
This study reveals that Nigerian companies are on the proper path to adopt and effectively use
information technology to improve customers service delivery and this will in turn affect
firm performance positively. As suggested by these findings, companies in Nigeria can better
their customers service delivery process by investing more in information technology, providing
IT training facilities to staff from time-to-time and educating their customers on the need for online transactions to ensure smooth, faster and quality service. All these would lead to increased
profits. Also, the companies need to develop productivity enhancing strategies that will enable
them to successfully integrate the new technologies with their present operations and the
information system units in the sector should be well financed and given adequate maintenance
to ensure adequate flow of information for decision-making and effective service delivery.
lastly, organizations should give their staff adequate training and. proper orientation to ensure the
effective use of information system in the provision and circulation of information for efficient
and effective insurance service delivery.

5.3 RECOMMENDATIONS BASED ON THE CONCLUSIONS

Provision of awareness medium by the ministry of information to individuals, organizations
(insurance companies inclusive) of the importance and usefulness of information technology
and systems and its contribution to national development through mediums such as radio,
magazines, newspaper, television etc.
Organizational management should be sent to various seminars and conferences on information
technology so as to build on already existing knowledge of information technology and to learn
about new ways to beat competition and achieve competitive advantage. This study also
recommends these:
1. Insurance administrators and regulators at all levels should gather relevant information as
regards factors that may assist in contributing meaningfully to the usefulness of information
technology in effective service delivery.
2.Insurance companies in Nigeria are encouraged to improve on their investment level in their IT
so as to further enhance performance efficiency in every aspect of their business operations.
3.Insurance organizations should encourage they provide IT enhanced quality service delivery
that are customer friendly to the insuring population.
4.Insurance regulators at all levels should endeavor to evaluate the extent to which information
technology has been put to effective use in every department of the industry.
5.5 LIMITATIONS AND SUGGESTIONS FOR FURTHER STUDIES
This research suggests further that future studies should look into cost implication of the use of
IT in the service delivery efficiency of insurance companies in the developing world. More so,
efforts need be put together to ascertain and evaluate quality of insurance services in terms of
responses to insurance claims payment and settlement, availability of insurance policy, cost of
insurance, regular supply of information, flexibility. in policy plans (that is, duration of policy,
premium adjustment, etc.), availability of insurance Brokers/ Agents and courtesy of contract
staff. Lastly future research can endeavor to investigate reasons why the insuring publics do not
often utilize the available IT facilities in their dealings with their respective insurance companies.

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