An Assessment of the Impact of Insurance Investment on Nigeria’s Economic Growth

Abstract

This paper is titled “An Assessment of the Impact of Insurance Investment on Nigeria’s Economic Growth".  Assessing the impact of insurance investment on Nigeria's economic growth is crucial because insurance mobilizes significant long-term capital (premiums) for productive investments, facilitates risk management for businesses, promotes financial stability, and contributes to GDP, with studies showing a positive link, though its full potential is hampered by low penetration and regulatory gaps, necessitating policy focus on deepening insurance uptake for sustained growth. It Investigates the impact of insurance sector development and the Nigerian economy from 1990 to 2022. The study employed time series data sourced from CBN statistical bulletin and using ARDL model to analyze the data. The empirical results indicate that insurance investment does have a significant impact on the overall growth and development of the Nigerian economy, also insurance premium does have a significant impact on the overall growth and development of the Nigerian economy, and total insurance transaction does have a significant impact on the overall growth and development of the Nigerian economy. Based on the findings of this study, the following recommendations are made: Policymakers should encourage inclusive insurance practices through regulatory measures promoting accessibility and affordability for a broader Nigerian population, fostering competition, innovation, and consumer protection. Policymakers and regulators must carefully balance premium regulation to ensure profitability for insurance companies and affordability for consumers, preventing excessive premiums that could hinder economic growth. Regular collaboration among policymakers, industry stakeholders, and researchers is crucial for continuous monitoring and research of the insurance sector's performance and economic impact, facilitating evidence based decision-making.