IMPACT OF LIFE INSURANCE BUSINESS ON ECONOMIC GROWTH IN NIGERIA

Abstract

The study investigated the impact of life insurance business on economic growth in Nigeria, using time-series data from 2007 to 2024. The specific objectives of the study were to: find out the impact of total life insurance premiums on the gross domestic product of Nigeria; determine the impact of total life insurance claims on the gross domestic product of Nigeria; and examine the impact of total life insurance assets on the gross domestic product of Nigeria. An ex post facto research design was adopted because the study was secondary research. While the Autoregressive Distributed Lag (ARDL) technique was applied in assessing each hypothesis. Results of hypotheses test show that: total life insurance premiums, total life insurance claims, and total life insurance assets had a significant impact on gross domestic product in Nigeria. Based on the findings, it was concluded that the life insurance business has a significant impact on Nigeria's economic growth within the framework of the adopted model from 2007 to 2024. The study recommended that, to increase the total premium income of the Nigerian insurance industry, the National Insurance Commission (NAICOM) and other market associations in the Nigerian insurance industry should embark on an aggressive awareness campaign and enforcement of all compulsory insurances in Nigeria. Through this synergy, the life insurance sector will definitely generate more premium income and contribute significantly to economic growth in Nigeria. Insurance companies should endeavor to settle genuine claims promptly and should employ competent asset managers to oversee the management of their assets to help maximize returns on assets and also improve the financial intermediation role of the Nigerian insurance sector, which will, in the long run, translate into economic growth.