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Author
Obodo, Chukwuebuka Valentine 1 & Prof. Ifeoma Okwo 2
1 & 2 Department of Insurance and Risk Management,
Faculty of Management Sciences,
Enugu State University of Science and Technology, (ESUT), Enugu
Abstract
Research Objectives: The study examined the effect of macroeconomic variables on the purchase of insurance policies in Nigeria. Specifically, the study examined the effect of inflation rate on the purchase of insurance policies in Nigeria; the effect of unemployment rate on the purchase of insurance policies in Nigeria; and the effect of poverty rate on the purchase of insurance policies in Nigeria.
Methodology: The data employed for the study were time series data, and were sourced from CBN statistical bulletin, NAICOM industry report, World Bank indicator and Macrotrend. The Auto regressive Distributed lag model (ARDL) was used in analyzing the data.
Findings: The study found out that: Inflation rate has no significant effect on the purchase of insurance policies in Nigeria; Unemployment rate has no significant effect on the purchase of insurance policies in Nigeria; and Poverty rate has no significant effect on the purchase of insurance policies in Nigeria.
Conclusion: The implication of these findings is that inflation rate, unemployment rate and poverty rate have no significant effect on the purchase of insurance policies in Nigeria.
Recommendation: The study recommends amongst others that there should be diversifying of insurance products to meet the needs of different categories of Nigerians.
Key words: Macroeconomic variables, Insurance policies, Inflation rate, Unemployment rate, Poverty rate.
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