Technological Advancement and Risk Management in Composite Insurance Companies in Nigeria

Abstract

Purpose: The study focused on the effect of technological advancement on the Risk management of insurance companies in Nigeria. The study’s objectives were to examine how technological innovations enhance the identification of policyholder risk by insurance companies and evaluate how information technology has improved the identification of risks inherent in investment by insurance companies.Methodology: A survey research design was employed in this study. The study focused on the 14 composite insurance companies in Nigeria, only five of which were selected based on gross premium written and retention ratio. The targeted population of the study was 1569, while the sample size was 181 employees of the selected insurance companies. A well-structured questionnaire was formulated and administered, out of which 163 were filled and used for analyses using regression analysis with the SPSS (IBM 23) package.Results and Findings: The results showed that technological innovation had enhanced insurance companies’ identification of policyholder risks. In contrast, information technology has not improved the identification of risks inherent in investment by insurance companies. Thus, the study recommended, among others, that insurance companies should invest more in information technology to help achieve better results.