Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between digital insurance platforms (insurtech) and profitability of insurance companies has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Selected Federal Government Parastatals in Nigeria where operating conditions differ markedly from more developed markets.

Within the context of Selected Federal Government Parastatals in Nigeria, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of digital insurance platforms (insurtech) on profitability of insurance companies, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on digital insurance platforms (insurtech), there remains limited consensus on the precise nature of its relationship with profitability of insurance companies, particularly within Selected Federal Government Parastatals in Nigeria. Many organizations continue to make decisions about digital insurance platforms (insurtech) without a clear, evidence-based understanding of how those decisions ultimately affect profitability of insurance companies. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Digital Insurance Platforms (Insurtech) on profitability of insurance companies in Selected Federal Government Parastatals in Nigeria.
2. To assess the extent to which digital insurance platforms (insurtech) influences profitability of insurance companies within the study area.
3. To identify the challenges associated with digital insurance platforms (insurtech) in relation to profitability of insurance companies.
4. To recommend strategies for optimizing digital insurance platforms (insurtech) in order to improve profitability of insurance companies.

1.4 Research Questions

1. What is the effect of digital insurance platforms (insurtech) on profitability of insurance companies in Selected Federal Government Parastatals in Nigeria?
2. To what extent does digital insurance platforms (insurtech) influence profitability of insurance companies within the study area?
3. What challenges are associated with digital insurance platforms (insurtech) in relation to profitability of insurance companies?
4. What strategies can be adopted to optimize digital insurance platforms (insurtech) in order to improve profitability of insurance companies?

1.5 Significance of the Study

Beyond its academic contribution to the field of insurance, this study has practical value for management teams within Selected Federal Government Parastatals in Nigeria seeking to understand how digital insurance platforms (insurtech) translates into measurable outcomes around profitability of insurance companies. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

In terms of scope, this study confines itself to Selected Federal Government Parastatals in Nigeria, focusing specifically on how digital insurance platforms (insurtech) relates to profitability of insurance companies within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.