Assessing the Management of Life Insurance Funds: A case of SIC Life Company Limited.

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Insurance is one of the key sectors in the economic development of Ghana. The insurance market is made up of sellers of the insurance products that are, the insurance companies who provide covers for various risks and the intermediaries namely insurance agents and brokers. Life assurance contracts are usually for much longer periods. Life funds are therefore accumulated to long-term liabilities. The Ghanaian insurance industry has about twenty-two (22) companies underwriting life assurance. Life premium rose from GH¢ 10,679,000.00 in 2000 to GH¢ 82,044,000.00 in 2005. This constituted more than 100% growth rate. This study therefore is exploratory study designed to determine how life funds are properly managed. The population of the study comprises both staff and customers of SIC Life Unit. A sample size of fifty (50) was selected made up of 20 staff and 30 customers. Purposive and stratified sampling technique was used. Both primary and secondary data were collected. Questionnaire coupled with personal interviews were the main research instrument. The data was analyzed by the use of simple Microsoft Excel and SPSS. Descriptive statistics was used to summarize the information. The study came out that life insurance funds in Ghana are placed both in short and long-term investments. It was recommended that all the stakeholders, including management of insurance companies, policy makers and policy holders should collaborate and come out with conducive business climate to ensure effective investment of life funds for greater returns to investors.
A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters in Business Administration, June, 2011