Finance

[pic] School of Management Blekinge Institute of Technology Sweden

ETHICAL ISSUE: A PROBLEM IN NIGERIA INSURANCE COMPANIES

Authors:

Akinbola,Oluwakemi Ejide
[e-mail]

&

Isaac, Likali Tsowa
[e-mail]

Supervisor:

Eva Wittbom
School of Management

Master’s Thesis in Business Administration Spring 2010

ABSTRACT

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

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