Credit Risk Modelling Techniques For Life Insurers

This study was intended to study credit risk modeling techniques for life insurers. This study was guided by the following objectives; to know the best techniques of credit risk modeling for life insurers. To examine the impact of credit risks on life insurers. To examine the benefits of credit to life insurer. To examine the relationship between credit and performance of insurers. To know if credit facilities are readily made available to insurers.
The study employed the descriptive and explanatory design; questionnaires in addition to library research were applied in order to collect data. Primary data sources were used and data was analyzed using the chi-square statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 32 employees of the African Alliance Insurance company, Abuja.
The study findings revealed that credit risks taken by insurance companies are high, credit risks negatively affect insurance institutions; based on the findings from the study, efforts should be made by the Nigerian government and stakeholders in ensuring a less risk model when it comes to credit facilities