Effects Of Risk Management Practices On The Performance Of Insurance Companies In Nigeria

CHAPTER ONE INTRODUCTION 1.1   Background to the Study Insurance companies play an important role in the financial services sector of most countries by lowering total risk, contributing to economic growth and efficient resource allocation, reducing transaction costs, creating liquidity, facilitating economies of scale and spreading financial losses (Duompos, Gaganis, and Pasiouras, 2012). They do this through underwriting of risks inherent in most sectors of the economy and provide a sense of peace to most economic entities. Consequently, the financial performance of insurers is of major impor…