Moderating Effect of Internal Control Activities on Risk Assessment and Performance of Insurance Companies in Nigeria

Abstract

This study seeks to determine whether internal control activities moderate the effect of risk assessment on the  performance of insurance companies in Nigeria. The study uses a cross-sectional research design to collect quantitative  data. Primary data were collected from 232 employees of insurance companies in Nigeria through an online  questionnaire using a random sampling method. The two hypotheses were tested using Smart PLS 3 software and  partial least squares – structural equation modelling (PLS-SEM). The result shows that there is a positive and significant  effect of risk assessment on the performance of insurance companies in Nigeria. Furthermore, the findings show that  internal control significantly moderates the relationship between risk assessment and performance in Nigerian  insurance companies. The study recommends that internal control should be considered by Nigerian insurance  companies when implementing risk assessment programs. This may be achieved through adequate supervision and  employment of risk assessment officers.