The art of modern living including economy progress and development of any nation are associated with various kinds of risks. Men and woman", children alike, are exposed to risks  as well as different kinds of hazards and every being is faced  With the possibility, that one day, one of these hazards Which  form part of life will befall him or her. To overcome some financial loses, one way of providing for the blow of those risk which individual are prone to is insurance. It could be better described as a risk transfer mechanism.

Insurance guarantees a person that their individual financial losses will be fairly and equitable, the probability of many risks can be mathematically calculated, and it is against those that insurance can be effected. Insurance is based upon the principle of the pooling of risks. Those who insured contributed to common funds, out of which payments can be made to those who suffer loss. It is possible to insure against  such risks as fire, theft, accident, goods in transit, employers  liability, sickness and a great many other contingencies.  Nearly 40% of the total of insurance business is in the “life” branch that it is really assurance because the “risk” is certain to happen at some time. Most of this is not pure assurance, as the endowment. Policy is now the most popular. In this case the person whose life is insured undertakes to pay premiums for a limited period of time, ten to forty years or until the reaches a certain age. if he dies  before the expiry of this term the insurance company pays an  agreed sum to his dependants; if he survives he receives the agreed sum, generally with the addition of  bonus,  depending on the company’s profits. Thus, this type insurance is partly a method of saving. Life assurance probably dates from the seventeenth century, but other forms of insurance are much older, there being evidence of the existence of marine insurance as early as 916 B.C.? Acts of 1870 and 1909 contain provision for the protection of policy- holders, one of these being the separation of the “life” fund from the funds of any other kind of insurance, the company may transact.   

Anchor insurance was incorporated on 6th June 1989 as an insurer and was licensed on 7th October 1989 to commence general business. Anchor insurance is wholly owned by Akwa Ibom State Government, the company’s head office is at No. 2 Aka Road Uyo.  

It formally commences operation on 15th November 1989 with general business. It has now added life business to its operations. The company has branches in major cities in the country e.g. Lagos, Port Harcourt, Eket, Etinan, Ukanafun and head office at Uyo. The company is headed by a Managing Director (MD), it has a board which makes policies for the company. The board has the honorable commissioner for finance as chairman. It has function departments such as finance/accounting, personnel administrative, marketing department, general business under writing department, life/pension department and also public relation department.  The general business department takes charge of fire and special rents, consequential law, burglary, goods, transit, marine insurance, money insurance, personal consistence/group personal assistance, workmen compensation and  motor insurance. Life assurance is in charge of group life  policy pension scheme, whole life assurance, accidental  death benefits, level term insurance, mortgage protection  in insurance while the bond, ‘bid bond, customers bond and  also credit bonds.



There is lack of knowledge about insurance and the concept of insurance as well as its benefits to both the individuals and business concerns in the economy.



The objective of the study is to examine the effect of insurance company on the economic development of Akwa lbom State. In the long term, major potential is needed in developing a strategy to improve public consciousness of insurance to many companies in Akwa lbom State. 

With the above view in mind, therefore the purpose of this study is: 

i         To intimate the general public with the aims and  objective of insurance companies in the economic  development of Akwa lbom State. 

ii        To intimate» the Akwa" lbomites with benefits to be  derived from effective "insurance in the state’s economy. 

iii       To bring to the knowledge of the people the current   trends and development-in the global insurance market. 

iv       To provide further research materials for researchers  " who Wish to conduct a study on insurance. 



i         It will enable researchers to discover the effect of  insurance and  importance to individual and businessman in the economy of the state.

ii        The study will as well enable other researchers to know  the services which insurance in the economy  Akwa Ibom State.

iii       This study will outline the aims and objectives of  insurance companies and the rise of its operation in the  course of national and economic development; it will  provide any researcher of this topic data for his  investigation. It will attract enough revenue form it to shareholders, ‘customers, government of Akwa lbom State and other investors all over the country.



1.       What relevant is insurance to the success and productivity of a finance? 

2.       Is there any significant relationship between insurance and the survival of the business? 

3.       Will there be able to maximize abnormal or normal, gain at the end of the month or at the end of the year? 

4.       Will the management be paying the staff salary monthly, allowance, overtime, medical treatment? 



The null hypotheses for this study are:- 

i.        Insurance companies have not contributed effectively in raising the level of employment in the economy.

ii.       Insurance companies have not led to increase in the level of investment in the economy.

iii       There is no significant companies and economic  development of Akwa lbom State the course of national and  economic development; it will provide any researcher of this  topic “data ‘for his investigations. It will attract enough revenue form to its shareholders, customers, government of Akwa Ibom State and other investors all over the country.       



This project is limited to Akwa lbom State, Anchor Insurance (Nigeria) Limited, Uyo, because of time and financial constraints. 



In order to help the reader understand this project, the researcher therefore has defined and explained certain term and words used in this study such as:

INSURANCE: There are several definitions of insurance, cash definition carry in" the message that the particular author Wishers to pass out to his readers. The lawyers  defines insurance as a contract whereby a person ‘called the  insurer or assure  agrees in consideration of money paid to  him call the premium, by another person called insured or  assured to indemnify the latter against loss resulting to him  on the happening of certain event. The policy is the document which contain the terms of the contract. 

The economist defines insurance as device for the transfer of some risk of economic loss from the insured who otherwise could have borne the risk, to an insurer in return for a premium. 

A sociologist defines insurance as a device whereby the participant provides financial compensation to those among them encountering the many misfortunes that befall humanity, each one of these definition does throw light on the nature and scope of insurance.

POLICY: A contract of insurance, this term includes every- writing whereby contract of insurance is made or is agreed to be made, or is evident. 

PREMIUM: The amount somebody pays for insurance. It is  the periodic" payment made by insured to the-insurer in  return for protection against risk insured for, written  premium refers to the premium for policies sold within a  given time periods usually  calendar year. Direct written premium are the amount representing premium income retained by insurance company directly or through re-insurance after payment made for re-insurance. 

INSURER: The one who insures the insured. 

CLAIM: This is the value of an insurance policy after maturity or a demand to recover for a loss covered by and insurance policy. Claim made to are first party claims”.  Claims made by one person against another, company are known as third party claims”.

INDEMNITY: This means restoring the insured to the same financial position after a loss he enjoyed immediately prior to the loss.

AGENT: This is an insurance sale man. An independent agent is an independent business person who usually represents two or more insurance companies in a sale and services capacity and is paid on a commission basis, the exclusive agent represent only one company, usually on a commission basis.

BROKER: An insurance sales person who deals with a company to find insurance for customer.

POLICY HOLDER: A person who pays a premium to an insurance company in exchange for the insurance protection provided by a policy of insurance. 

POLICY PERIOD: The amount of time as insurance contract (policy lasts). 

LOSS: The basis on which insurance claims are submitted. 

PERIL: The cause of a loss insured against in a policy e.g.  Fire and theft.

LIABILITY: Any legally enforceable financial obligation.  

CATASTROPHES: An accident of series of related incidents. 

RISK: The change of a loss also used to refers to the insured or property covered by a policy. 

REXNSURANCE: Assumption by one insurance company of all or part of risk undertaken by another insurance company. 

POOL: An organizations of insurers or reinsures through which particular types of risk are under written and premium losses and expenses are shown in an agreed amount.

INSURANCE COMPANY: An organization chartered to‘  operate as an insures which in exchange for a fee (known as a premium) agree to pay all legitimate claims that may arise  under the policy. 

UNDER WRITER: A person who selects risk for insurance  and determining in that amount and in what terms the  insurance company will accept the risk. 

ASSUMPTION: The subject of the study and the research  method used is assured should give a maximum and needed  co-operation to the researcher through completing and  returning of the questionnaire return need will reach the  researcher within a stipulated period in order to aid the early  completion of the research. It is also expected that at least 80% of the questionnaires sent would be returned, the researcher assumed that the management of Anchor Insurance would co-operate with the researcher and would release useful information about the organization.  It was assured: that the data gathered were reliable and that both the personal interview and questionnaires answers were correct, and that the research after completion will be successful and useful.