JEFMS Journal

ABSTRACT:

The study aims to analyse the effect of claims management on firm performance of insurance companies through marketing factors. The data was collected from 776 of management, senior and junior (frontline) staff of selected Insurance companies in Lagos State using a questionnaire as a data collection tool. This research uses a quantitative approach with a survey method. Respondents were selected from the the 20 registered insurance companies across composite, general and life Insurance businesses in Lagos State through a stratified ransom sampling technique. The collected data were analysed using hierarchical regression analysis (HRA) to test hypothesis and evaluates the regression model specified. The collected data were analysed using hierarchical regression analysis (HRA) to test hypothesis and evaluates the regression model specified. The findings indicates that marketing factors significantly moderated the effect of claims management practices on firm performance of selected Insurance Companies (β = -0.009, R2∆ = 0.002; F∆ = 17.928, p < 0.05). The study concludes that marketing factors moderated the effect of claims management practices on firm performance of selected Insurance Companies in Lagos State. The study therefore recommends that the management of selected insurance companies in Lagos State focus on creating a positive marketing factor that bolsters claims management practices to achieve a sustainable performance in the industry. This may involve developing marketing policies and training that encourage employee involvement, job satisfaction, and a positive working environment.

KEYWORDS:

Claims Management Practices, Claims Process, Risk Management, Marketing Factors, Firm Performance

REFERENCES:

1) Adetunji, A.L., E. Nwude, C. & Udeh, S.N. (2018). Interface of insurance and economic growth: the Nigerian experience. International Journal of Economics and Financial Issues, 8(4), 16-26. www.econjournals.com

2) Adusei, C., & Senyah, M. M. (2022). Staff knowledge on records management in the local governments of Ghana: A Case Study. Expert Journal of Business and Management, 10(1). https://business.expertjournals.com/23446781-1001/

3) Alrowwad, A. A., Obeidat, B. Y., Tarhini, A., & Aqqad, N. (2017). The impact of transformational leadership on organizational performance via the mediating role of corporate social responsibility: A structural equation modeling approach. International Business Research, 10(1), 199-221. www.researchgate.net/publication/311855116.

4) Angima, C. B., & Mwangi, M. (2017). Effects of underwriting and claims management on performance of property and casualty insurance companies in East Africa. European Scientific Journal, 13(13), 358 – 373. doi.org/10.19044/esj.2017.v13n13p358.

5) Angima, C., & Jebiwott, J. (2022). Effect of claims digitalization on service delivery by insurance companies in Kenya. African Journal of Emerging Issues, 4(13), 111-127. https://www.ajoeijournals.org/sys/index.php/ajoei/article/view/369.

6) Aremu, M. Ayodele, R., & Aremu, M. (2016). Environmental factors and strategic marketing planning in Nigerian insurance industry. DBA Africa Management Review, 6(1), 17-30. journals.uonbi.ac.ke/damr.

7) Ayuba, B., Isyaka, M. S., & Agugua, G. A. (2020). Impact of claim settlement on performance of general insurance businesses: Evidence from federal capital territory, Abuja. IJMSR, 4(1), 329 -347. https://www.researchgate.net/publication/344176811.

8) Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120. journals.sagepub.com.

9) Barry, R. (2011). Transforming claims management with communication and collaboration technology. An insurance industry thought- leadership paper on behalf of Cisco. www.cisco.com/web/strategy/docs/finance/ClaimsManagementWhitepaper.pdf .

10) Carton, R.B. (2004). Measuring organizational performance: An exploratory study. Unpublished PhD Thesis, University of Georgia, Athens. /www.scirp.org/(S(i43dyn45teexjx455qlt3d2q).

11) Chang, Y., Siew, F. W. & Park, M-C. (2014). Determinants of user satisfaction in internet use among socio-economically advantaged and disadvantaged groups: The role of digital access and government policy, 25th European regional conference of the international telecommunications society (ITS): "Disruptive innovation in the ICT industries: challenges for European policy and business”, Brussels, Belgium, 22nd-25th June, 2014, International Telecommunications Society (ITS), Calgary. hdl.handle.net/10419/101432.

12) Chong, H. G. (2008). Measuring performance of small and medium scale sized enterprises: The grounded theory approach. Journal of Business and Public Affairs, 2(1), 1 - 10. www.researchgate.net/publication/312803976

13) Covin, J., & Slevin, D. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1), 75-87. doi/10.1002/smj.4250100107.

14) Crook, T. R., Ketchen Jr, D. J., Combs, J. G., & Todd, S. Y. (2008). Strategic resources and performance: a meta-analysis. Strategic management journal, 29(11), 1141-1154. www.researchgate.net/publication/45402440.

15) Fashagba, M.O. (2019). Implementing marketing strategies to penetrate insurance market in Nigeria. www.researchgate.net/publication/353368482.

16) Geringer, J., & Hebert, L. (1991). Measuring performance of international joint ventures. Journal of International Business Studies, 22(2), 249-263. https://econpapers.repec.org.

17) Gessese, Y.B. (2018). The effect of motor insurance claim management on customer satisfaction at Ethiopian insurance corporation. Master of business administration (MBA) Thesis of St. Mary’s university, Ethiopia. hdl.handle.net/123456789/4342.

18) Goddard, J., Molyneux, P. & Wilson, J. (2004). The profitability of European banks: a cross-sectional and dynamic panel analysis. Manchester School, 72(3), 363-381. doi:10.1111/j.1467-9957.2004.00397.x.

19) Grant, A. M. (2008). The significance of task significance: Job performance effects, relational mechanisms, and boundary conditions. Journal of applied psychology, 93(1), 108. psycnet.apa.org.

20) Hernaus, T., Bach, M. P., & Vukšić, V. B. (2012). Influence of strategic approach to BPM on financial and non-financial performance. Baltic Journal of Management, 7(4), 376-396. doi:10.1108/17465261211272148.

21) Hitt, M. A., Bierman, L., Shimizu, K., & Kochhar, R. (2001). Direct and moderating effects of human capital on strategy and performance in professional service firms: A resource-based perspective. Academy of Management journal, 44(1), 13-28. journals.aom.org.

22) Ironkwe, U. I., & Osaat, A. S. (2019). Risk asset management and financial performance of insurance companies in Nigeria. International Journal of Advanced Academic Research/Accounting Practice, 5(4), 18-46.www.ijaar.org/articles.

23) Katou, A. A., & Budhwar, P. S. (2007). The effect of human resource management policies on organizational performance in Greek manufacturing firms. Thunderbird international business review, 49(1), 1-35. www.researchgate.net/publication/40498717.

24) Kazungu, J. S., & Barasa, E. W. (2017). Examining levels, distribution and correlates of health insurance coverage in Kenya. Tropical medicine & international health: TM & IH, 22(9), 1175–1185. doi.org/10.1111/tmi.12912 25) Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological

Measurement, 30(3), 607–610. doi.org/10.1177/001316447003000308 26) Maseke, B. F. & Iipinge, D. N. (2021). Factors influencing clients in choosing insurance companies. Open Access Library Journal, 8, e6944. .doi.org/10.4236/oalib.1106944.

27) Mathur, D. & Tripathi, A. (2014). Factors influencing customer’s choice for insurance companies—a study of Ajmer City. IOSR Journal of Business and Management, 16, 35-43. scirp.org/reference/referencespapers.aspx?referenceid=2422507.

28) Monday, J. U., Akinola, G. O., Ologbenla, P., & Aladeraji, O. K. (2015). Strategic management and firm performance: A study of selected manufacturing companies in Nigeria. European Journal of Business and Management, 7(2), 161-171. www.researchgate.net/publication/47619063.

29) Newbert, S. (2008). Value, rareness, competitive advantage and performance: a conceptual-level empirical investigation of the resourced-based view of the firm. Strategic Management Journal, 29, 745-768. doi.org/10.1002/smj.686.

30) Newbert, S. L. (2014). Building theory in social entrepreneurship. Journal of Social Entrepreneurship, Taylor & Francis Journals, 5(3), 239-242. doi: 10.1080/19420676.2014.948748.

31) Ngui, D. L., & Maina, J. R. (2019). Organizational resources and strategy implementation in non-profit organizations; a case of Kenya medical research institute, Kenya. International Journal of Current Aspects, 3(VI), 33-51. journals.ijcab.org.

32) Ntwali, A. (2020). Claims management and financial performance of insurance companies in Rwanda (Doctoral dissertation, Mount Kenya University Rwanda). erepository.mkuit.ac.rw/bitstream/handle/123456789.

33) Ntwali, A., Kituyi, A., & Kengere, A. O. (2020). Claims management and financial performance of insurance companies in Rwanda: A case of SONARWA general insurance company Ltd. Journal of Financial Risk Management, 9, 190-210. www.scirp.org/journal.

34) Olanipekun, W., Abioro, M. & Arulogun, O. (2015). Impact of strategic management on competitive advantage and organizational performance – Evidence from Nigerian bottling company. Journal of Policy and Development Studies, 9, 185-198. doi:10.12816/0011216.

35) Oluwaleye, T. O., Shoyemi, O. S., & Edewusi, D. G. (2020). Effects of claims management on profitability of insurance companies In Nigeria. British Journal of Management and Marketing Studies, 3(4), 106-114. abjournals.org/bjmms/papers.

36) Oteh, O. (2016). Deepening insurance penetration and marketing: demographic factors and healthcare insurance acceptability among rural people in Abia state, Nigeria. 3. 30-45. www.researchgate.net/publication/332523264.

37) Oyedokun, G. E., & Gabriel, F. G. (2018). Effects of claims management on profitability of listed insurance companies in Nigeria. American Journal of Management, 18(5), 37-45. doi.org/10.33423/ajm.v18i5.252.

38) Puiji, P., Ayyu, et al. (2018). The effect of risk management on financial performance with good corporate governance as a moderation variable. Management and Economics Journal 2(3), 308. doi:10.18860/mec-j.v0i0.5223

39) Rajkumar, M. & Kannan, N. (2014). Factor affecting preferences for selection of life insurance companies: an empirical study with reference to Tamilnadu. International Journal of Accounting and Business Management, 2, 19-27. www.scirp.org/(S(vtj3fa45qm1ean45 vvffcz55).

40) Richard, P., Devinney, T., Yip, G., & Johnson, G. (2008). Measuring organizational performance as a dependent variable: Towards methodological best practice. ssrn.com/abstract=814285.

41) Sandberg, W., & Hofer, C. (1987). Improving new venture performance: The role of strategy, industry structure and the entrepreneur. Journal of Business Venturing, 2(1), 5-28. doi/10.1177/104225878701200101.

42) Triraharjo, J., Aima, H. & Sutawidjaya, A. (2019). The effect of servant leadership and breakthrough leadership on organization performance with employee satisfaction as intervening variable at IDX-listed (Indonesia Stock Exchange) coal mining companies in Indonesia. International Review of Management and Marketing, 9(3), 166-172. doi:10.32479/irmm.8159.

43) Ugwu, C. (2022). Insurance companies in Nigeria that paid the most claims in Q1 2022. Retrieve on 17 August, 2022 from nairametrics.com/2022/06/21/insurance-companies-in-nigeria-that-paid-the-most-claims-in-q1-2022/

44) Victor, O.C. (2013). Impact of insurance on economic growth in Nigeria. International Journal of Business and Management Invention, 2(10), 19-31. www.ijbmi.org.

45) Waiganjo, E. W., Mukulu, E., & Kahiri, J. (2012). Relationship between strategic human resource management and firm performance of Kenya’s corporate organizations. International Journal of Humanities and Social Science, 2(10), 62-70. ir- library.ku.ac.ke.

46) Waititu, J. W. (2016). Relationship between strategy implementation and performance in commercial banks in Nairobi County Kenya. International Journal of Business and Management, 11(9), 230. doi.org/10.5539/ijbm.v11n9p230

47) Yusuf, T. O., Ajemunigbohun, S. S., & Alli, G. N. (2017). A critical review of insurance claims management: A study of selected insurance companies in Nigeria. SPOUDAI Journal of Economics and Business, 67(2), 69-84. www.econstor.eu/handle/10419/195195.

48) Zaidi, F. I., Zawawi, E. M. A., Nordin, R. M., & Ahnuar, E. M. (2018). An empirical analysis of strategy implementation process and performance of construction companies. IOP Conference Series: Earth and Environmental Science, 117, 012026. doi.org/10.1088/1755-1315/117/1/012026

49) Zaneldin, E. (2006). Construction claims in United Arab Emirates: Types, causes, and frequency. International Journal of Project Management, 24(5), 453-459. doi:10.1016/j.ijproman.2006.02.006.