School of Management Blekinge Institute of Technology Sweden
ETHICAL ISSUE: A PROBLEM IN NIGERIA INSURANCE COMPANIES
Isaac, Likali Tsowa
School of Management
Master’s Thesis in Business Administration Spring 2010
The study aimed to investigate and critically analyze claims management, an ethical issue in insurance companies in Nigeria, to find out if these insurance companies recognize it to be an ethical issue and also to find out how they handle insured’s claims.
A qualitative research method was used in carrying out this study; data was sourced through interviews and by secondary data using literatures from books, journals, articles, and electronic websites. The researchers used purposive sampling to select some top insurance companies in Nigeria; in these insurance companies basically personnel working in the claims department were interviewed, also sales agents from two of these insurance companies were interviewed. Data was sourced from two insurance broking firms in Nigeria by interviewing their top personnel, and also some of the insuring public with and without insurance policies was interviewed. The analytical strategy adopted in this research work was to rely on theoretical propositions.
This study made use of Jones (1991) moral intensity model. Based on the analysis of data collected during the interview, the study revealed that insurance personnel in claims administration who take decision on insured’ claims in Nigeria recognize that there is a moral dilemma in their act and they discharge this responsibility professionally and ethically sticking to the rules of the business. Also the characteristics that constitute moral intensity model; proximity, social context, probability of effect, concentration of effect and magnitude of consequence offered by Jones (1991) influence the moral decision making process and moral behavior of claims personnel in Nigeria insurance companies. But due to some challenges faced by these personnel in discharging their duty and some lapses from their side and the insured’s there have always been complaint on claims. However they acknowledge that no one is perfect therefore they are open to getting feedbacks from their clients on the way they feel about their claims which they look into and make necessary amendments where needed.
This study concluded with proposition for future researchers to look into how the challenges encountered by personnel managing insured’s’ claims in insurance companies in Nigeria can be dealt with and to find out how insurance companies in Nigeria can gain the awareness of the insuring public and make them understand the terms and conditions of insurance service.
Key words: Claims management, ethical issue, insurance companies.
The successful completion of this study is made possible by the full support of the Almighty God and we therefore return all the glory to Him.
We are grateful to the entire staff of BTH School of Management for granting us the opportunity to study under them and for sharing with us their wealth of knowledge.
Our sincere thanks goes to Eva Wittbom who guided us through in the research work, her commitment and dedication in going through the work all the way is highly appreciated.
We are also grateful to our course coordinator, Melissa Engelke.
Our profound appreciation goes to our data sources with whom we would not have been able to complete this research....