Effect of Information Provision of Cost Fire Insurance Claim on the Gross Claims of Non- Life Insurance Business in Nigeria
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This work studied effect of information provision of cost fire insurance claim on the gross claims of non-life insurance business in Nigeria 2002 – 2022. The sole objective of this study was to appraise the effect of information provision and the average cost of fire insurance claims on the gross claims of non- life insurance business in Nigeria. Theory of average cost and model of communication were applied because it is pivotal in evaluating efficiency need for effective communication of information while the research design used was ex-post facto. Data used were extracted from Central Bank of Nigerian Statistical Survey (1999) and National Insurance Commission (NAICOM), Financial Annual Report (2011) and Nigerian Insurance Digest (2019). ARDL regression technique was used for data analysis and the result showed a p-value of 26% > 5% allowable error margin and a co-efficient of -0.38 (a negative sign) an indicator that cost of fire insurance claims had negative and non-significant effect on non-life insurance gross claims paid in Nigeria from 2002 – 2021 which also signify lack of adequate information. In light of the above, it was recommended that insurers should develop fire risk management strategy such as information provision, public enlightenment campaign, fire preventive techniques, firefighting tools etc. for fire insurance policyholders. Again, there should be a mandatory installation of sprinklers, fire hydrant for private homes hotels, shopping malls, fuelling stations. Also smoke alarms to create awareness before the fire struck to enable neighbourhoods to act appropriately.
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