Competitive positioning and market share of selected insurance companies: case of Nigeria
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Received May 28, 2024;Accepted July 6, 2024;Published July 25, 2024
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Author(s)Link to ORCID Index: https://orcid.org/0009-0009-7549-239XLink to ORCID Index: https://orcid.org/0000-0002-0762-9931Link to ORCID Index: https://orcid.org/0000-0002-0023-9949Link to ORCID Index: https://orcid.org/0000-0001-8958-4767
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DOIhttp://dx.doi.org/10.21511/ins.15(1).2024.06
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Article InfoVolume 15 2024, Issue #1, pp. 70-82
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The insurance industry contributes to the smooth running of the economy. Unfortunately, not every country develops insurance at a high level; that is, the level of insurance penetration is low. This is happening in Nigeria. Therefore, this study aims to establish the effect of competitive positioning on the market share of selected insurance companies in Lagos State, Nigeria. The study adopts a survey research design. A structured instrument was used for data collection using the modified six-point Likert-type scale. The questionnaire was divided into three sections (about respondents’ demographic factors, competitive positioning, and market share). The population was 2,183 management-level employees from the 20 selected insurance companies. The sample size of 507 was determined using stratified random sampling and proportionate method. Test-retest method was used to validate the instrument, while the reliability was determined through internal consistency method. The Cronbach Alpha coefficients ranged from 0.71 to 0.88. Response rate of 86.7% was achieved. Descriptive and inferential statistics were used for analysis. Findings reveal that competitive positioning components have a significant effect on market share (Adj.R2 = 0.194, F(5. 434) = 22.097, p < 0.05). The results demonstrate that if all the competitive positioning components were set to zero, the market share of selected insurance companies in Lagos State would be 6.537, which is a positive value. Thus, competitive positioning components significantly affect market share. As a result, this study found that insurers would benefit from increasing their focus on developing the strategic asset and research and development aspects of competitive positioning to expand their market share.
Acknowledgments
The researchers acknowledge the contributions of the anonymous reviewers for the useful comments in making the article better. We acknowledge the management of the University that made it mandatory for the supervisee to publish two articles from their thesis, one in the name of the supervisor as the lead author, while another in the name of the supervisee as the lead author. The research assistants are acknowledged for the cooperation during the field work and the management of the insurance companies engaged for the study. The inputs of the supervisors are greatly acknowledged.
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JEL Classification (Paper profile tab)M21, G22, G52, D22
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References60
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Tables9
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Figures0
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- Table 1. KMO and Bartlett’s test for each variable in the research instrument
- Table 2. Reliability coefficients
- Table 3. Descriptive statistics analysis for continuous improvement
- Table 4. Descriptive statistics analysis for strategic leadership
- Table 5. Descriptive statistics analysis for the strategic asset
- Table 6. Descriptive statistics analysis for product differentiation
- Table 7. Descriptive statistics analysis for research & development
- Table 8. Descriptive statistics analysis for market share
- Table 9. Summary of multiple regression analysis for the effect of competitive positioning components on market share of selected insurance companies in Lagos State, Nigeria
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Conceptualization
Ajetunmobi Ololade A., Adesoga Adefulu, Nwankwere Idowu
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Data curation
Ajetunmobi Ololade A., Adesoga Adefulu
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Formal Analysis
Ajetunmobi Ololade A., Makinde Grace Olubisi
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Investigation
Ajetunmobi Ololade A., Makinde Grace Olubisi, Nwankwere Idowu
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Methodology
Ajetunmobi Ololade A., Adesoga Adefulu, Makinde Grace Olubisi
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Project administration
Ajetunmobi Ololade A., Adesoga Adefulu, Makinde Grace Olubisi, Nwankwere Idowu
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Resources
Ajetunmobi Ololade A., Adesoga Adefulu, Makinde Grace Olubisi
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Visualization
Ajetunmobi Ololade A., Makinde Grace Olubisi, Nwankwere Idowu
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Writing – original draft
Ajetunmobi Ololade A., Makinde Grace Olubisi
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Writing – review & editing
Ajetunmobi Ololade A., Adesoga Adefulu, Makinde Grace Olubisi, Nwankwere Idowu
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Supervision
Adesoga Adefulu, Makinde Grace Olubisi
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Validation
Adesoga Adefulu, Makinde Grace Olubisi, Nwankwere Idowu
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Software
Makinde Grace Olubisi, Nwankwere Idowu
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Conceptualization
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Financial sustainability management of the insurance company: case of Ukraine
Ruslana Pikus , Nataliia Prykaziuk , Mariia Balytska doi: http://dx.doi.org/10.21511/imfi.15(4).2018.18Investment Management and Financial Innovations Volume 15, 2018 Issue #4 pp. 219-228 Views: 3506 Downloads: 293 TO CITE АНОТАЦІЯIn the current conditions of the Ukrainian economy, which is characterized by crisis phenomena and frequent changes in legislation, the insurance organizations are facing a number of difficulties in maintaining their financial sustainability. Moreover, these processes take place under the increased requirements for solvency of insurers. However, a significant part of domestic insurance companies is financially unstable, which is conditioned not only by the lack of funds, but also by the low level of management. This situation hinders the further development of the insurance market in Ukraine and has a negative impact on all areas of the domestic financial system and prevents it from successful integration into the European financial field. In order to address this problem, it is necessary to distinguish the key groups of risks that affect the financial sustainability of insurance organizations, among which there are the following: insurance, strategic, market risk, risk of inefficient capital structure, risk of limiting the insurance company’s liquidity, tax risk, investment risk, operational risk, the risk of ineffective organizational structure of the enterprise, and information risk. It should be noted that under conditions of changing environment, the impact of these risks only increases, and therefore the task of minimizing the impact of these risks on the activities of insurance companies is highly important. Accordingly, the authors of the article proposed a four-stage strategy to manage the financial sustainability of the insurance company, the purpose of which is to identify the risks of limiting the insurer’s financial sustainability, their qualitative and quantitative assessment, as well as the development and implementation of appropriate measures to minimize and eliminate unacceptable consequences.
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Service quality, customers’ satisfaction, and profitability: an empirical study of Saudi Arabian insurance sector
Investment Management and Financial Innovations Volume 15, 2018 Issue #2 pp. 232-247 Views: 3419 Downloads: 571 TO CITE АНОТАЦІЯFinancial performance is the fundamental aspect to test the performance of the companies. The performance of insurance sector, like any other service industry, is supposed to depend significantly on customers. When it comes to customers, it is an established fact that customer satisfaction would be an important element. Customer satisfaction primarily depends on the quality of service it gets. It can be safely hypothesized that better service quality would lead to higher satisfaction, which would ultimately lead to higher profits for the company. Studies on this relationship in the insurance sector for Saudi Arabia are missing. Hence, this study aims at studying both the profitability of companies and quality of service and tries to relate it to customer satisfaction. The results are quite surprising, as the study establishes that although the qualities of services are found wanting in many areas, companies are earning good profits. A probable reason could be the statutory nature of the services. Nevertheless, this study recommends improving the quality of services and differentiating services between age groups for further improvement.
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Optimal control of continuous life insurance model
Viktor Oliynyk , Fedir Zhuravka , Tetiana Bolgar , Olha Yevtushenko doi: http://dx.doi.org/10.21511/imfi.14(4).2017.03Investment Management and Financial Innovations Volume 14, 2017 Issue #4 pp. 21-29 Views: 1956 Downloads: 216 TO CITE АНОТАЦІЯThe problems of mixed life insurance and insurance in the case of death are considered in the article. The actuarial present value of life insurance is found by solving a system of differential equations. The cases of both constant effective interest rates and variables, depending on the time interval, are examined. The authors used the Pontryagin maximum principle method as the most efficient one, in order to solve the problem of optimal control of the mixed life insurance value. The variable effective interest rate is considered as the control parameter. Some numerical results were given.