RECAPITALIZATION IN THE INSURANCE INDUSTRY PROPOSED PROBLEMS AND PROSPECT
Performance of an economy determines the position of the particular nation in the world. The better the performance of an economy and the large economic resources it holds, the higher the level of influence of such country in the entire world. There are many sectors of human endeavor that form the economic chain of a nation. Among these human activities or commercial activities are oil and gas, manufacturing and construction, education, Banking, Insurance etc. Among these activities, insurance sectors of the economy were examined in order to be refining tune. Insurance sector of the Nigeria economy has witnessed doldrums for the past three decades. Recapitalization of insurance sector of the economy was ventured into to determine whether such a process can be one of the sound instrument to refine tune the Nigeria economy. A lot has been gained from the recapitalization process of insurance sector and the process has resulted into a success. The research method used is survey. The sources of data were analytical and descriptive. This focuses on the measurement of the insurance sector’s asset against the Gross Domestic product and the problems that could be encountered during the recapitalization process. Data obtain from the analysis of the secondary sources is from 2006 edition of statistical bulletin published by the Central Bank of Nigeria, revealed that asset value against Gross Domestic Product (GDP) from 1987 till 1993 were progressing with (GDP) of the nation on a high side where as from 1994 till 1998 the value of asset were retrogressing with a little difference in the Nation GDP. Recommendations were made to the way forward which includes; Government should provide favourable and enabling environment, like good policies to enable insurance industry perform efficiently. Seminars, conferences and workshops should be organized by insurance regulatory body to educate insurer ethics of the profession. NAICOM should stick to the various rules and regulations guiding the consolidation process and review from time to time the needed and required policies.