Impact of Insurance Intermediaries on the Performance of Non-Life Insurance Companies in Nigeria
Keywords:
Intermediaries, Performance, Non-Life InsuranceAbstract
This study investigated the impact of insurance intermediaries on the performance of non-life insurance companies in Nigeria, focusing on their influence on market penetration, the challenges they face, and the strategies employed to promote insurance products. While prior research has recognised intermediaries’ importance in distribution and trust-building, limited empirical evidence exists on their direct contribution to measurable performance outcomes in the Nigerian context. The study adopted a descriptive survey research design. The population comprised employees and agents from ten major non-life insurance companies in Nigeria, and a census sampling technique was employed to capture all relevant respondents. Structured questionnaires served as the research instrument, and out of 300 distributed, 276 valid responses were obtained and analysed using descriptive statistics. Findings revealed that intermediaries significantly enhance market penetration through targeted marketing, customer education, and relationship building, and positively influence financial performance and profitability by improving customer retention, expanding client bases, and facilitating accurate risk assessment. However, they face regulatory and operational challenges, including stringent compliance requirements, high costs, and technology adoption barriers. The study concludes that strengthening intermediary capabilities and addressing operational constraints are essential and recommends continuous training, digital investment, streamlined compliance processes, and stronger collaboration between insurers and intermediaries.
References
Accenture. (2021). Digital engagement in insurance: Trends and strategies. Digital Insurance Journal, 21(4), 60-75.
Adebisi, L. (2006). Economic and Social Mechanisms of Insurance. Nigeria Insurance Journal.
Agboluwaje, T. (2018). The Basics of Insurance. Ibadan University Press.
Akintokunbo, O. (2018). The Evolution of Insurance. Insurance Publishing House.
Alhassan, A., & Biekpe, N. (2016). Insurance and Economic Development: A Review of the Literature. Journal of Insurance Research, 24(2), 115-130.
Anderson, P., & Brown, K. (2019). Insurance Principles and Practices. Financial Times Press.
Bierman, H., & Smidt, S. (2017). The Economics of Insurance. Oxford University Press.
Black, K., & Skipper, H. (2020). Life Insurance: Whole, Term, and Endowment Policies. Georgia State University Press.
Black, K., & Skipper, H. D. (2000). Insurance Education and Its Importance. Georgia State University Press.
Chen, M., & Wang, Y. (2020). InsurTech: The Future of Insurance. Harvard Business Review Press.
Chepkoech, J., & Rotich, G. (2017). The Role of Insurance Companies in the Financial Sector. Eldoret University Press.
Coble, J. (2018). Intermediary Impact on Insurance Claims. Journal of Insurance Practices, 17(4), 203-219.
Cohen, S. (2020). Digital Transformation in Insurance. Springer.
Consumer Financial Protection Bureau (CFPB). (2021). Value for money in insurance products. Consumer Protection Journal, 14(3), 150-165.
Cummins, J. D., & Weiss, M. A. (2016). Insurance Economics: Non-life Sector Analysis. Springer.
David, M. & Clifford, W. S. (1982). On the Corporate Demand for Insurance. The Journal of Business, 55(2), 281-296.
David, P. (2014). The Role and Significance of Insurance Intermediaries. American Insurance Association.
Deloitte. (2020). Technological disruptions in insurance: Challenges and opportunities. Insurance Technology Review, 17(2), 40-55.
Deloitte. (2020). Technological disruptions in the insurance industry. Journal of Insurance Technology, 18(1), 45-60.
Deloitte. (2021). The role of digital marketing in insurance promotion. Journal of Marketing for Insurance, 23(1), 30-45.
Derick, M. (2021). Non-life Insurance: Types and Importance. Insurance Institute of America.
Dickson, G. (2012). Insurance and Risk Management. McGraw-Hill.
Dionne, G. (2013). Risk Theory and Non-life Insurance. HEC Montreal Press.
Dorfman, M. (2019). Regulatory Challenges in Insurance. Insurance Law Journal, 21(2), 112-135.
Edelman Trust Barometer. (2020). Consumer trust in the insurance industry. Journal of Consumer Trust Studies, 13(4), 200-215.
Eniola, E., Tonade, A., & Adeniji, K. (2021). Drivers of Growth in Insurance Sector. International Journal of Finance, 12(1), 78-92.
Ernst & Young. (2020). Technological adaptation for insurance intermediaries. Journal of Insurance Innovation, 19(4), 70-85.
Ernst & Young. (2022). The impact of underwriting and claims management on profitability. Journal of Insurance Economics, 40(4), 190-205.
European Insurance and Occupational Pensions Authority (EIOPA). (2021). Regulatory impact on insurance profitability. Regulatory Studies Journal, 27(3), 102-117.
Eze, U., & Victor, A. (2017). The Nigerian Insurance Act 2003: A Comprehensive Guide. Law Africa Publishing.
Fasan, R. (2019). The Impact of Insurance Brokers on the Market. Nigerian Insurance Journal.
Franklin, J. (2014). Insurance Intermediaries and Their Role. Chartered Insurance Institute.
Gibbs, M. (2021). Insurance as an Economic Institution. Harvard Business Review Press.
Gollier, C. (2001). The Economics of Risk and Time. Cambridge, MIT Press.
Harrington, S., & Niehaus, G. (2017). Risk Management in Insurance. McGraw-Hill Education.
Hartwig, R. P., & Wilkinson, C. (2019). Public Policy and Non-life Insurance. American Institute for Chartered Property Casualty Underwriters.
Insurance Regulatory and Development Authority of India (IRDAI). (2020). Annual report on non-life insurance sector. Journal of Regulatory Studies, 34(1), 67-82.
Insurance Regulatory and Development Authority of India (IRDAI). (2020). Educational campaigns on insurance awareness. Journal of Public Awareness in Insurance, 16(3), 55-70.
International Association of Insurance Supervisors (IAIS). (2020). Market competition and pricing pressures in insurance. Insurance Market Review, 22(3), 150-165.
International Monetary Fund (IMF). (2022). Economic factors affecting insurance markets. Economic Policy Review, 31(3), 220-235.
Keenan, R., & Teoh, S. (2021). Adapting to Digital Markets in Insurance. Journal of Insurance Innovation, 34(2), 89-106.
Klein, R. (2018). Economic Perspectives on Non-life Insurance. Columbia University Press.
Kwak, S. (2015). Role of Insurance Agents and Brokers in Market Development. Journal of Risk Management, 28(3), 197-212.
Lee, J., & Huang, H. (2012). Performance Metrics in Business Management. Business Strategy Review, 19(4), 345-359.
Linus, C. (2021). Risk Transfer and Economic Restoration through Insurance. South African Institute of Financial Planning.
Markowitz, H. (1959). Portfolio Selection: Efficient Diversification of Investments. John Wiley & Sons.
McKinsey & Company. (2021). Product diversification in non-life insurance. Insurance Industry Review, 25(2), 75-90.
Microinsurance Network. (2015). Microinsurance and poverty alleviation. Journal of Insurance and Financial Inclusion, 12(3), 45-60.
Mutua, M. (2014). Understanding the Fundamentals of Insurance. Kenya Insurance Institute.
OECD. (2019). Challenges in regulatory compliance for insurance intermediaries. Regulatory Compliance Journal, 20(2), 120-135.
OECD. (2019). Insurance regulation and its impact on market penetration. Global Insurance Journal, 19(5), 133-148.
Osunlana, A. (2020). Insurance Contracts and Risk Management. University of Lagos Press.
Outreville, J. F. (2014). Development and Regulation of Non-life Insurance. Palgrave Macmillan.
PwC. (2017). Insurance 2020: Delivering on the promise of digital transformation. Journal of Insurance Research, 22(4), 112-130.
Richard, O. (2009). Corporate Performance and Organizational Dynamics. In J. Josephine & I. Nnadi (Eds.), Performance Management in Corporates (pp. 43-59).
Schmit, J., & Roth, M. (2006). Insurance Distribution Channels. Journal of Insurance Regulation, 15(1), 29-47.
Swiss Re. (2018). Bancassurance and market expansion. Journal of Market Expansion, 29(2), 88-104.
Swiss Re. (2018). Bancassurance: Opportunities and challenges. Insurance Economics Review, 28(2), 85-101.
Swiss Re. (2018). Natural disasters and their impact on non-life insurance. Disaster Insurance Journal, 24(1), 95-110.
Swiss Re. (2019). Risk Management and Non-life Insurance. Swiss Reinsurance Company.
Vaughan, T. (2017). Principles of Insurance. John Wiley & Sons.
World Bank. (2016). Cultural barriers to insurance adoption. Journal of Behavioural Insurance, 15(2), 100-115.
Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2018). Services Marketing: Integrating Customer Focus Across the Firm. McGraw-Hill Education.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Michael Ojo Oke, Clement Olugbenga Ariyo
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.
