IMPACT OF UNIVERSAL BANKING ON THE INSURANCE INDUSTRY; A CASE STUDY OF SELECTED INSURANCE COMPANIES IN NIGERIA
Sometimes in 1999, some sector of the Banking Industry began to advocate the adoption of Universal Banking (UB). As the argument for and against the introduction ranged on in conferences and workshops, the CBN had to succumb to the pressure from the proponents of Universal Banking by giving approval for the introduction of Universal Banking. Fears have been expressed over the introductions of Universal Banking. These fears appear to be harboured by insurance who hold the notion that Banks are only coming to disturb their seemingly exclusive business. Some people, including the insurance experts have however, dismissed these fears, stressing that the phenomenon would rather boost Insurance business and make the practitioners sit up for real competitive insurance marketing and sales. In the light of the above, this research work seek to look at the Impact of Universal Banking on the Insurance Industry. To identify the problem that could arise there from and to proffer solutions to the problem. Universal Banking is a multi-purpose banking which removes the restrictions between commercial banking rmerchant banking, and insurance market such that a banking institution can offer integrated financial services in one stop centre. The principal research instrument used is the questionnaire. The case study is the first ten insurance companies on the rating of the Nigeria Reinsurance Corporation of Insurance Companies in Nigeria, based on their asset base. The study population consists of the management and senior staff of the case study. Ten questionnaires were given to each of the case study making it a total population of 100 workers. Since the total population is known we used Bourley’s formular to determine the sample size of 80. The data were analysed using likert scale statistical model. The hypotheses were tested using Z-score test. The result showed that Universal Banking will have tremendous positive impact on the insurance industry. It is strongly believed that the introduction of Universal Banking is good to the bettered image of insurance industry in Nigeria. Universal Banking will improve the service delivery in the insurance industry. The banks are popular, with banks transacting insurance business the insuring public will be rest assured of the settlement of their claims. The work equally showed that the long standing insurance unawareness in the country will be broken down by Universal Banking and Insurers will stand to gain more clients.