Brief Introduction

Insurance is a traditionally recognized mechanism by which a risk is transferred by a person, business or organization, etc. To an insurance company that reimburses the insured upon the payment of a certain amount called premium paid yearly, half-yearly, quarterly. It can also be defined as a pooling of risk a wise person makes in case of an unforeseen occurrence.

Moreover, apart from being a risk bearer, insurance nowadays has gone beyond it. They are known for the significant role they play in the economic development of a nation; such insurance is referred to as the bedrock of a virile economy.

This is for Nigeria investors to operate under a healthy economic environment, it is the reason for Nigeria the impact of insurance in the Nigeria economic recession, no modern economy can survive without the active support of viable insurance industry.

The starting point of insurance came into existence in Nigeria and for what purpose was it established. The European traders who traded on the west coast of Africa introduced to Nigeria what is known as modern insurance. (Royal exchange Assurance) this insurance business was introduced into Nigeria at the beginning of the twentieth century for cover for their business transaction, which was covered against perils of the sea.

Meanwhile the first insurance company to the corporation of Nigeria (NICON) which is used to lack ups the national economy. This corporation made a government plan towards full protection of their asset realized which in return brought about increment in the foreign exchange earning of Nigeria as a nation.