An Assessment of the Stakeholders Perception of Reinsurance and Insurance Products and Services on the Performance of Insurance Companies

Abstract

The primary purpose of this paper is to assess the stakeholder’s perception of reinsurance and insurance products and services on the performance of insurance companies in Sierra Leone. The general objective of the study is to asses factors influencing performance of insurance industry in Sierra Leone, with the specific aim to identify variables impacting mode of operation in underwriting, claim and finance departments in insurance Companies in Sierra Leone. Both quantitative and qualitative approaches were used in this study. Quantitative results were used to assess the effect of insurance and reinsurance on the performance of insurance companies in Sierra Leone. The qualitative data was used to establish the relationship and magnitude between insurance and performance by explaining the results in the research. In conclusion, the study was able to identify that insurance programmes around the world are highly variable and differ with respect to products, modes of distribution, management capacity, institutional maturity and in numerous other ways. Also, the socioeconomic context and environment in which the insurance programmes evolved influence the development and performance of insurance companies. This diversity makes insurance performance comparisons difficult and sometimes artificial; therefore, a measure of caution should accompany every conclusion about relative performance as in the case of Sierra Leone.