ABSTRACT
This study examines the role played by NAICOM in the institution of good corporate governance culture in the Nigerian insurance industry. This was done by determining how successful the NAICOM, as the insurance industry regulator, has been in instilling a sound corporate governance culture in the industry. The Nigerian insurance industry have over the years been plagued by under-capitalization, poor human capital and professional skills, poor returns on capital, insurance premium flight, trust and confidence issues and poor corporate governance structures. However, with the introduction of the code of good corporate governance for the insurance industry, it is expected that these factors inhibiting the growth of the industry will be mitigated. In order to conduct the study, a survey research design was adopted, using questionnaire and interviews as the major instruments for collecting data. The data so collected was analysed using ANOVA SPSS tool. At the end of data gathering and analysis, the study revealed that NAICOM and, in particular, the code of good corporate governance has played a key role in the institution of relatively good corporate governance standards in Nigeria’s insurance industry. The study thus recommends that NAICOM 2009 code be amalgamated with other industry specific codes and given statutory backing, such that breach of the provisions may attract penalty.
TABLE OF CONTENTS
COVER PAGE i
TITLE PAGE ii
DECLARATION iii
DEDICATION iv
APPROVAL PAGE v
ACKNOWLEGEMENTS vi
ABSTRACT vii
TABLE OF CONTENTS viii
LIST OF TABLES xi
LIST OF ACRONYMS xii
LIST OF APPENDICES xiii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Research Questions 4
1.4 Objectives of the Study 4
1.5 Research Hypotheses 5
1.6 Significance of the Study 5
1.7 Scope of the Study 5
1.8 Limitation of the Study 6
1.9 Definition of Terms 6
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 7
2.2 Theoretical Framework 7
2.2.1 Agency theory 7
2.2.2 Stewardship theory 8
2.2.3 Resource dependency theory 8
2.2.4 Transaction cost theory 9
2.2.5 Stakeholder theory 10
2.3 Conceptual Framework 10
2.3.1 Corporate governance 10
2.3.2 Benefits of good corporate governance 12
2.3.3 Standards of corporate governance in Nigeria 15
2.3.3.1 OECD principles of corporate governance 17
2.3.3.2 IAIS insurance core principle on corporate governance 18
2.3.3.3 NAICOM code of good corporate governance 19
2.3.3.4 How the OECD and IAIS principles compare with NAICOM’S 28
2.3.4 Level of compliance with NAICOM code in the insurance industry 30
2.3.5 State of corporate governance in the insurance industry 31
2.3.6 Impediments to achieving international corporate governance best practice 34
2.4 Review of the Theories 39
CHAPTER THREE: METHODOLOGY
3.1 Introduction 41
3.2 Research Design 41
3.3 Population of the Study 41
3.4 Sample of the Study 41
3.5 Sampling Techniques 42
3.6 Method of Data Collection 42
3.7 Instruments for Data Collection 42
3.8 Methods of Data Presentation and Analysis 43
CHAPTER FOUR: RESULTS AND DISCUSSION
4.1 Introduction 44
4.2 Data Analysis 44
4.3 Summary of Findings 50
4.4 Discussion of Findings 50
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary 52
5.2 Conclusion 54
5.3 Recommendations 54
REFERENCES 56
APPENDICES 60
