Transforming the Nigerian Insurance Sector: A Study on Business Process Reengineering (BPR) Impact

This abstract provides an attempt to the practical implementation of Business process reengineering (BPR) in the Nigerian insurance industry. As BPR has emerged as a significant strategic tool for organizations seeking to enhance operational efficiency. It focuses on the application of BPR in the insurance industry in Nigeria, a sector that has funds you to 726.2 billiion naira as at 2022 faced numerous challenges in recent years. However, the insurance industry in Nigeria has traditionally been characterized by manual and paper-based processes, resulting in inefficiencies, delays, and increased costs. BPR offers an opportunity to fundamentally redesign and streamline these processes to improve customer service, reduce operational costs, and enhance overall business performance. The objective is not only to explore the potential benefits and challenges of implementing BPR in the Nigerian insurance industry but to investigated the effect of BPR in the insurance industry between the period of 2011 to 2022 using data for premium, claims and both for life and non-life businesses between the same period. The study used error correction model (ECM) to determine the effect of business process reengineering in the Nigeria insurance industry. The co-integration business process reengineering and insurance industry in Nigeria was also explored using the Johanson co-integration test. The study found that the coefficient of LPLIF and LINVY are negative and statistically not significant at 5% level of significance. This negative association further showed that a one percent increase in the coefficient of LPLIF and LINVY will result to (0.76) and (0.75) decrease in the dependent variable CLAM. This implies that a percentage increase in premium business life insurance and investment income will jointly decrease insurance claims. Therefore, by embracing BPR, insurance companies in Nigeria can transform their operations, streamline processes, and adapt to the evolving needs of customers and the market. This will no doubt improve profitability of the insurance sector and further inject funds to the Nigerian’s GDP. Ultimately, this study recommends that insurance companies should adapt to the reengineering of its business process especially its claim payment process.