Role of effective internal control systems on insurance business performance in Nigeria

Role of effective internal control systems on insurance business performance in Nigeria

Author by Dr. Tunji Siyanbola

Journal/Publisher: Research Journal Of Finance And Accounting

Volume/Edition: 7

Language: English

Pages: 1 - 11

Abstract

This study assessed, in empirical terms, the roles that effective internal control systems play on the performance
of insurance business in Nigeria, using selected insurance companies in Adamawa State in the North Eastern part
of the country, as case study. The population consists of all insurance companies in Nigeria, random sampling
was used to select five of the existing sixteen active insurance companies in Adamawa State and primary data were
used to elicit responses on seven structured questionnaire administered. Pilot survey was adopted for the reliability
test and it yielded correlation coefficient of 0.82. Pearson Product Moment Correlation Coefficient was used to
analyze the relationship between internal control system and performance of insurance companies. The study
found a positive relationship between the independent and dependent variables, indicative of the fact that effective
and efficient internal control system plays major roles on performance of insurance business. The study therefore
recommends that a well established internal control system should be mandatory for all companies in the insurance
industry. It was also recommended that they should all engage the services of well qualified accountants to manage
their internal control functions so as to reduce the incidence of frauds and malpractices in the economy.


Other Co-Authors