Diagnosis of Life and Non-Life Insurance Sector on Economic Growth in Nigeria: Impact and Feasibility

Vollständiger Abstract

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The research focused its attention on life and non-life insurance activities independently regarding their economic impact in Nigeria from 1990 to 2024. The empirical study was conducted using descriptive statistics. The descriptive statistics indicate that both the dependent and independent variables exhibit a normal distribution, as evidenced by the Jarque-Bera probability value. The unit root analysis reveals that the series are integrated of order one (1), whereas the Johansen cointegration test confirms a long-term relationship among life insurance, non-life insurance, and economic performance. The long-run and short-run dynamics (ECM) indicate a positive and significant effect between life insurance gross premiums and gross domestic product. The gross premium of non-life insurance exerts a positive yet insignificant influence on gross domestic product. Total assets in general insurance demonstrate a positive butinsignificant effect on gross domestic product. The research therefore concludes that life and non-life insurance activities independently influence economic performance in Nigeria. y, insurance companies should contemplate the repackaging and rebranding of their life and nonlife insurance offerings to effectively target low-income earners which can significantly increase market penetration and deepen the market overall. This promotes financial inclusion and stimulate saving amongst a wider segment of the population.