Analysis of Sum Insured And Co-Operators’ Contribution to Naic Products in Oyi and Ayamelum Local Government Areas of Anambra State, Nigeria (Published)
The study investigated NAIC products and the performance of farmers focusing on the sum insured and farmers’ contribution to NAIC products in Oyi and Ayamelum LGAs of Anambra State. Major objectives were to ascertain whether time has significant impact on total sum insured and co-operators’ contribution over the observed period, to determine whether there exist significant difference between sum insured and farmers contribution for Oyi and Ayamelum LGAs and to ascertain the extent of relationship between sum insured and co-operators’ contribution for the two local government areas. Secondary data was used for this case study research. Data for Oyi and Ayamelum LGAs were extracted sfrom NAIC Annual Reports 2010-2013, and were statistically analyzed, using time series models, paired sample T-test analysis and Pearson’s product moment correlation coefficient. Result showed that time (month) has significant impact on monthly co-operators’ contribution and time contributed significantly to the behavior of sum insured in the two local government areas. Thus, the seasonal analysis found sum insured to be least in the month of May and highest in October. Analysis showed that co-operators’ contribution to NAIC products was least in the months of May and December. Paired sample T-test revealed the existence of a significance difference in sum insured for Oyi being greater than sum insured for Ayamelum with a mean difference of N3,190,690. 65.8% correlation was found to exist between sum insured for Oyi and Ayamelum LGAs. Paired Sample analysis revealed a significance difference between co-operators’ contribution to NAIC products for Oyi and Ayamelum LGAs. Ayamelum co-operators contributed more to NAIC products than Oyi co-operators with an average contribution, difference of N5,727,550. It is suggested that governments should make effort to adequately fund the financial intermediaries through which credits associated with NAIC insurance cover are provided so as to make the distribution system efficient. Premium paid by Nigerian farmers at 50% for an insurance cover should be reduced to 25% by the federal and state governments to encourage and boost food security in Nigeria.