Research on Developing Nigeria Cargo Insurance Market for International Trade Facilitation through the comparative analysis with U.K.

Abstract

This thesis aims at providing a comprehensive description and analysis of some of the policies and activities of Nigeria's cargo insurance market with respect to international trade. More so, this study intends to confirm the existence of a positive and significant relationship between cargo insurance activity, international and ultimately economic growth in Nigeria. Clearly, the insurance industry contributes positively and significantly to Nigeria's economic progress. Based on the findings, it is suggested that the government should implement economic policies capable of stimulating insurance industry activity, such as the enforcement of statutory insurance industry stakeholders should improve the insurance image and market awareness activity by promoting systematic educational campaigns in the media and other publicity channels to reach out to the general public; and insurance industry stakeholders should improve the insurance image and market awareness activity by promoting systematic educational campaigns in the media and other publicity channels to reach out to the general public. This is because the Nigerian insurance industry's performance has been rated below global norms, which has implications for risk management in the marine sector.

Cargo insurance is used to safeguard Cargoes (commodities) from physical damage or theft in Nigeria and other countries in the world. The flow of commodities through Nigeria's international trade entails various hazards and perils (such as fire, war perils, pirates, rovers, thieves, captures, seizures, restraints, detention, and so on), necessitating the need for cargo insurance. Given that there is no guarantee that damage or loss will not occur, these risks are mitigated through cargo insurance coverage.

Cargo transportation has long played a critical role in the growth of economies all over the world. Air and maritime freight now carry about 90% of global trade. Despite developments in safety and technology over the years, cargo transit in Nigeria and other parts of the world is still very risky. More specific legislative interventions should be geared to completely removing operating hurdles to ease and enhance freight (cargo) insurance transactions, according to this research. To expand the insurance network and subscriber base in Nigeria, grassroots publicity, penetration, and awareness are required. This would help the Nigerian insurance business to become more consolidated and competitive with the rest of the world.

Keywords : Insurance, Cargo Insurance, International trade, Trade, economy, cargo, freight. market, Freight Forwarder, Nigerian Cargo Insurance, UK Cargo insurance, Trade Facilitation