Insurance Sector Development and Economic Growth in Nigeria, 1980 –2014

Abstract

This study was carried out to determine the effect of insurance sector development on the economic growth of Nigeria. Consequently, three hypotheses were designed to guide the researcher and data were drawn from the Central Bank of Nigeria (CBN) statistical bulletin which covered a thirty five (35) years period between 1980 to 2014. The hypotheses were tested using ordinary least square regression analysis and the econometrics co integration test and the result revealed that; there is a positive and significant relationship between insurance premium and economic growth in Nigeria; there is a positive and significant relationship between insurance claims and gross domestic product of Nigeria; there is a positive and significant relationship between insurance investments and economic growth in Nigeria. Based on the results, the researcher thus recommended the following amongst others; Government should Provide institutional improvements by making better laws and policies that will not only encourage fair play but also help to attract international players in the industry; Government should also provide information and education to the populace on the importance of acquiring insurance cover in order to be protected; Increasing efficiency, especially in risk management, and product development.