INSURANCE PENETRATION RATE AND ECONOMIC GROWTH IN NIGERIA: 1981-2017
Authors:
Okonkwo, Ikeotuonye Victor and Eche, Ann Uzoamaka
Abstract:
This study examined the Insurance Penetration Rate and Economic Growth in Nigeria: 1981-2017. The insurance markets globally have witnessed tremendous growth in the last decade with the world insurance premium in US dollars increased by 175% between the year 2000 and 2010. How has the Nigerian insurance industry contributed to this growth and insurance penetration in particular? The work proposed that the insurance penetration rate has no significant relationship with the economic growth of Nigeria. Data were sourced from the Central Bank of Nigeria statistical bulletin and using regression techniques the work established that there a no significant relationship between insurance penetration rate and economic growth of Nigeria; and that the insurance industry in Nigeria did not respond favourably to government financial systems reforms and policies. The government economic policies have not been sustainable and transformational as expected and the insurance industry seemed battling to regain the trust of the insuring public. Therefore, the industry is expected to explore packaging group insurances, creating risk awareness and streamline effective and efficient prompt claims administration.