Abstract
Research Objective: This study investigated the implications of sustainability reporting on trade openness for insurance business activities in Nigeria from 1996 to 2023. Specifically, it examined the impact of trade openness on insurance premium, insurance investment, and insurance assets.
Methodology: The study adopted an ex-post facto research design, sourcing data from the Central Bank of Nigeria Statistical Bulletin (2023). Augmented Dickey-Fuller tests were used to determine the diagnostic treatment of variables, and the normality of distribution was confirmed using the Jarque-Bera test. Ordinary Least Squares (OLS) regression analysis was conducted, using Real Gross Domestic Product (GDP) as a proxy for insurance business activities, while insurance premium, insurance investment, and insurance assets served as explanatory variables.
Findings: The results revealed that trade openness positively but non-significantly impacted insurance premium (10%, p-value = 0.22), insurance assets (9%, p-value = 0.21), and insurance investment (4%, p-value = 0.75) in Nigeria. These findings suggest that while trade openness contributes positively to insurance business activities, its effects are not statistically significant.
Conclusion: Trade openness, as an indicator of international trade capacity, significantly influences the growth potential of insurance business activities. Increased openness fosters a conducive environment for insurance activities to thrive, enhancing economic growth.
Recommendation: The study recommends that the government adopt enhanced sustainability reporting measures to maximize the positive impacts of trade openness on insurance business activities. These measures are crucial for capacity building and promoting economic growth in Nigeria.
Key words: Trade openness, Insurance activity, Insurance premium, Insurance investment, Insurance Assets.
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