THE CAPITAL MARKET AS A CATALYST TOOL FOR THE GROWTH OF INSURANCE INDUSTRY

ABSTRACT This research work sets out to evaluate the impact of capital market as a catalyst tool for the growth of Nigerian insurance industry.  The problem that prompted the research of this project was in connection with the need to recapitalize the insurance industry and position it for challenges of rising industrial and commercial activities of globalizing economy such as Nigeria, among the objectives of the study were; 1.To examine the reasons for insurance firms sourcing fund from the capital market. 2.To discover reasons why some insurance companies have not desired to be quoted in the Nigerians stock exchange. 3.To evaluate the impact of the Nigeria Capital Market on the growth of the insurance business in Nigeria. 4.To identify some institutional arrangements and provisions that is capable of influencing the desire to participate in Nigeria stock exchange. Exhaustive review and research was carried out on the long existence of insurance and capital market, the participants, operations and recent development in these two sectors was carefully understood and discussed.  The primary source of data is form of questionnaire was used in this work.  A hundred and fourteen questionnaires was distributed but hundred were returned and fourteen retained by our respondents. The secondary data was also used for this research work.  The questionnaire was structured into simplified and systemized multiple-choice questions.  The data were analyzed using questions.  The data were analyzed using likert scaling and percentage response.  The researchers found out that the recent recapitalization have fairly improved the capital base of the insurance industry.  I recommended among others that awareness should be created on insurance stocks to the populations within the working class who are the potential investors institutions.  Government should make it mandatory for all insurance company to be quoted in the NSE.  A complaints bureau should be set up for aggrieved party. I concluded that capital market have served and is still serving as a catalyst instrument that boosted and is still boosting the growth of the insurance industry.
TABLE OF CONTENTS Title Page Approval Page Dedication Acknowledgement  Abstract Table of Contents
CHAPTER ONE 1.0Introduction 1.1Background for the Study  1.2Statement of the Problem 1.3Objective of the Study  1.4Research Questions 1.5Hypothesis  1.6Scope of the Study  1.7Limitations of the Study 1.8Significance of the Study  1.9Definition of Terms
CHAPTER TWO 2.0Literature Review  2.1Historical  Background of Insurance in Nigeria  2.2Role of Insurance Sector in the Economy 2.3Meaning and Definitions of Capital Market 2.4Role of Capital Market in the Economy 2.5Factors that aid the Growth Trends of the Capital Market   2.6Operations of the Nigeria Stock Exchange 2.7Stock Market Participant and their Roles  2.8The Capital Market Reform in Nigeria  2.9Recent Developments in the Nigeria Capital Market and Globally 
CHAPTER THREE 3.0Research Methodology  3.1Research Design  3.2Sources of Data 3.3Population and Sampling Techniques  3.4Description of Research Instrument  3.5Validation of Research Instrument 3.6Method of Data Collection 3.7Method of Data Presentation and Analysis
CHAPTER FOUR 4.0Data Presentation and Analysis  4.1Introduction 4.2Demographic Characteristics 4.3Extent of Recapitalization Exercise in the Industry 4.4Insurance Industry Performance in NSE 4.5Institutional Management Influencing Desire to Participate in NSE      4.6Reasons for Non-quotations of some Insurance Companies in NSE 4.7Reasons for Sourcing of Funds from the NSE 4.8Capital Market and Long-Term Borrowing 4.9General Presentation  4.10Further Decision of Findings 4.11Testing of Hypothesis
CHAPTER FIVE 5.0Summary of Finding Conclusion and Recommendation  5.1Summary and Finding  5.2Conclusion  5.3Recommendation  Bibliography  Appendix I