Investor’s Demand For Insurance Valuation: The Estate Surveyors & Valuers’ Perception
Volume 3 - Issue 3, March 2019 Edition
[Download Full Paper]
Ernest O. Alohan
Perception, Investors, Insurance, Valuation, Insurance valuation,
The study demonstrated the perception of estate surveyors and valuers on the demand for insurance valuation by real estate investors in Nigeria. It sought to establish the rationale for seeking insurance valuation, ascertain whether estate surveyors and valuers provides advice to their client on insurance cover against damages/losses, investigate the client’s level of response to insurance cover, level of demand for insurance valuation and the factors influencing such level of demand. To achieve this, relevant information were sourced from estate surveyors and valuers through the use of structured questionnaire and personal interview. The study adopted the use of total enumeration of the study population of estate surveying and valuation firms, representing 100% of the study population. A total of 51 questionnaire were distributed to heads of Estate Surveying and Valuation firms, out of which 46 were retrieved and analysed for the study, representing a response rate of 90.20%. The questionnaire contains information on the number of insurance valuation done per month, purpose of valuation, whether estate surveyors and valuers advice their clients on the importance and need of insuring their property and their response, and also to rank each factor influencing demand for insurance valuation as perceived by them. Data collected were analysed using descriptive statistics. Findings revealed that valuation for mortgage was more prominent with 36.96%. It further revealed that estate surveyors and valuers advise their clients on the need for insurance cover and that most real estate investors do not consent to their advice. The study further established that poor attitude towards insurance services, lack of trust for insurance and lack of adequate knowledge of insurance by investors with mean rating of 4.522, 4.196 and 4.174 respectively ranked highest among the factors influencing the demand for insurance valuation. The study recommends prompt response and payment of claims to clients by insurance companies to build trust and confidence, embark on public enlightenment programmes to create more awareness and provide adequate knowledge to property investors to increase patronage of estate surveyors and valuers for valuation on insurance purpose.
. Akinbola, O. E. & Isaac, L. T., (2010). Ethical Issue: A Problem in Nigeria Insurance Companies (Master’s Thesis). Retrieved from https://www.diva-portal.org/smash/get/diva2:828307/FULLTEXT01.pdf
. Buckham, D., Wahl, J., & Rose, S., (2010). Executive's Guide to Solvency II. Chapter 1: The Evolution of Insurance. Cary, North Carolina, USA, SAS Institute Inc. Retrieved from https://support.sas.com/content/dam/SAS/support/en/books/.../62823_excerpt.pdf
. Insurance Act (2004). Chapter I18. Laws of the Federation of Nigeria. An Act to Provide a New Insurance Act. Enacted by the National Assembly of the Federal Republic of Nigeria. Retrieved from https://www.lawyard.ng/wp-content/uploads/2015/11/INSURANCE-ACT-2004.pdf
. Kuye, O., (Ed). (2003). Principles and Practice of Property Valuation Volume Two (Revised and enlarged ed.). Lagos: Olusegun Kuye & Associates.
. Masci, P., (2011). The History of Insurance: Risk, Uncertainty and Entrepreneurship. Journal of the Washington Institute of China Studies, 5(3), 25-68
. Oke, M. O., (2012). Insurance sector development and economic growth in Nigeria. African Journal of Business Management, 6(23), 7016-7023. DOI: 10.5897/AJBM11.2853. http://www.academicjournals.org/AJBM
. Oloke, C. O., Durodola, D. O., & Emeghe, J. I., (2015). Behavioural Analysis of Insurance Companies in Real Estate Investment in Nigeria. Journal of Economics and Sustainable Development, 6(16), 1-7.
. Onafalujo, A. K., Abass, O. A., & Dansu, S. F., (2011). Effects of Risk Perception on the Demand for Insurance: Implications on Nigerian Road Users. Journal of Emerging Trends in Economics and Management Sciences, 2 (4), 285-290. jetems.scholarlinkresearch.org.
. Onaolapo, O., (2001). Valuation for Insurance Purpose “The Perspective of an Insurer”. Being text of the paper delivered at the In-House Seminar organised by Jide Taiwo & Co.
. Ozuomba, C. V., (2013). Impact of Insurance on Economic Growth in Nigeria. International Journal of Business and Management Invention, Volume 2(10), PP.19-31. Retrieved from www.ijbmi.org
. Salman, A. S., Ab. Rashid, M. H., & Htay, S.N., (2016). The Progressive Development of India’s Insurance Industry from Ancient to Present Times. Human Resource Management Research, 6(4), 91-98. DOI: 10.5923/j.hrmr.20160604.02
. United Nations Conference on Trade and Development. (1994). Agricultural insurance in developing countries. Retrieved from unctad.org/en/PublicationsLibrary/unctadsddins1Rev.1_en.pdf
. Ujunwa, A., & Modebe, N. J., (2011). Repositioning Insurance Industry for Operational Efficiency: The Nigerian Case. Journal of Applied Finance & Banking, 1(3), 15-32.