Meaning And Historical Development Of Insurance

Overzicht

Long before anyone wrote a policy, traders crossing the Sahara and sailors leaving Lagos and Liverpool had already worked out the idea behind insurance: if many people who each face the same danger put a little into a common purse, the purse can rebuild the one who is actually struck. Insurance is simply that ancient bargain, tidied up into a legal contract and priced with mathematics.

In this lesson you will learn what insurance really is and how it moves risk off one person and onto a shared pool, how the industry grew from marine trade and Edward Lloyd's coffee house into the modern market, and how it took root in Nigeria before and after independence. You will meet the laws that govern it, right up to the Nigerian Insurance Industry Reform Act of 2025, and you will see why a business this important is controlled by statute rather than left to private bargaining.

Doelstellingen

  1. Define insurance and explain how it transfers risk from an individual to a pool of contributors
  2. Trace the historical development of insurance from early merchant practice to the modern industry
  3. Outline the growth of insurance in Nigeria before and after independence
  4. Identify the principal Nigerian insurance legislation and state the purpose of each
  5. Explain why insurance is regulated by statute rather than left to private agreement

Lesnotitie

A young tailor in Kaduna saves for four years, fits out a shop, and loses the whole of it to a single night fire. One person, one bad night, and a lifetime of savings gone. Now imagine four hundred tailors across the city, each fearing exactly the same thing, each paying a small sum every year into a common fund. When one shop burns, the fund rebuilds it, and no single member is ruined. That shared fund, run as a business and enforced by law, is insurance. Understand how the fund works and where it came from, and the rest of this subject falls into place, because every principle you will study later exists to keep that fund fair and solvent.

Lesevaluatie

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  1. Insurance transfers the risk of loss from the insured to the: A. Government B. Insurer and its pool of policyholders C. Broker who arranged the cover D. Bank that holds the premium Answer: B
  2. Which class of insurance developed earliest? A. Motor insurance B. Life assurance C. Marine insurance D. Fire insurance Answer: C
  3. In which year did the Royal Exchange Assurance open the first insurance branch in Nigeria, in Lagos? A. 1897 B. 1921 C. 1961 D. 1969 Answer: B
  4. The body that licenses and supervises insurers in Nigeria is the: A. Central Bank of Nigeria B. Nigerian Reinsurance Corporation C. National Insurance Commission D. Securities and Exchange Commission Answer: C
  5. Which statute currently governs the insurance industry in Nigeria? A. The Insurance Companies Act 1961 B. The Insurance Act 2003 C. The Nigerian Insurance Industry Reform Act 2025 D. The Marine Insurance Act 1906 Answer: C

Aanbevolen Boeken

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Ondertitel: Thirteenth edition
Uitgever: Pearson
Jaar: 2016
ISBN: 978-0-13-408257-8
Beschrijving: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Ondertitel: Tenth edition
Uitgever: Wiley
Jaar: 2008
ISBN: 978-0-470-08753-4
Beschrijving: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Ondertitel: Second edition
Uitgever: Himalaya Publishing House
Jaar: 2017
ISBN: 978-93-5097-079-9
Beschrijving: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.