The Impact of Life Insurance Consumption on Economic Growth in Nigeria.
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Abstract
This research work titled, an assessment ofthe impact of insurance industiy on economic growth in Nigeria was embarked upon to ascertain the impact of insurance industry on economic growth in Nigeria, 1980-2012. Despite the population and increased economic activities, Life insurance penetration in Nigeria remains among the lowest globally The study employed ex-post facto design and data from CBN was used to analyse the data. Descriptive and Ordinary Least square (OLS) methods were used for analysis. The results from the descriptive analysis of the normality test revealed that the error term in the model of life insurance consumption is not normally distributed as it is negatively skewed and showed instability in the year 2008. The results of life insurance consumption (PREMLIFE) as shown by the regression equation, shows less significance on economic growth, but maintain positive sign throughout its current and one lag value. In the third andfourth development stages ofthe currentform of the models, life insurance consumption impact positively on economic growth. The researchers concluded the study by making the following recommendations among them is that National Insurance Commission (NAICOM) should broaden the investment spectrum of the insurance industry to increase its contribution to the growth of Nigerian economy.