International Business Management
ISSN: OnlineISSN: Print 1993-5250
Abstract
The aim of this study, is to examine performance efficiency of the insurance industry, the outcome of which may generally assist insurance managers, investors and especially the insurance regulators on how to evolve appropriate measures that would revamp insurance business in Nigeria. The specific objective of the study is to examine cost efficiency characteristics across various sizes of insurance companies’ vis-à-vis large, medium and small firms. The major data used in this study was obtained from the secondary source. The insurance financial data was obtained from Annual Reports and Accounts of each of the twelve sampled Nigeria insurance companies. The use of major model of functional form and profit function model were employed in this study and the multiple regression results was validated on the basis of F derived from Analysis of Variance (ANOVA) table. It was discovered from findings that there is an inverse relationship between labour input price and the firms’ profit. An urgent need for recapitalization process in the Nigerian insurance industry was thus recommended because it would be better to have fewer number of strong capital based firms than many whose cost of production are sub-optimal.
How to cite this article:
O.A. Usman and A.O. Salami . The Efficiency of Cost Characteristics in Selected Insurance Firms in Nigeria.
DOI: https://doi.org/10.36478/ibm.2008.78.84
URL: https://www.makhillpublications.co/view-article/1993-5250/ibm.2008.78.84