Abstract
Research Objective: This study examined the impact of insurance premiums on economic growth in Nigeria from 1996 to 2023. Specifically, it investigated the impact of both general insurance premiums and life insurance premiums on the country’s economic growth.
Methodology: An econometric model was developed using the Ordinary Least Squares (OLS) estimation technique. Gross Domestic Product (GDP) was regressed on fire, accident, motor, marine, oil and gas, miscellaneous, and life insurance premiums.
Findings: The results showed a positive but insignificant relationship between GDP and life insurance premiums, fire insurance premiums, accident insurance premiums, and oil and gas insurance premiums. In contrast, motor insurance premiums, marine insurance premiums, and miscellaneous insurance premiums displayed a negative but insignificant relationship with GDP.
Conclusion: The study concluded that while insurance premiums, particularly life and general insurance premiums, show a positive relationship with economic growth, this impact is statistically insignificant. The findings suggest that the role of insurance premiums in fostering economic growth in Nigeria may need further strengthening.
Recommendation: It is recommended that individuals and organizations be encouraged to subscribe to both general and life insurance policies to support economic growth. Regulatory agencies should ensure the transparent and efficient management of premium income by insurers. Legislation, policy formation, and product innovation should be promoted to support the growth of fire insurance. Finally, the study advocates for greater government participation in the insurance sector to improve the operating environment and further enhance economic growth.
Key words: Insurance premium, General Insurance, Life Insurance, Economic Growth.
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