IMPACT OF INSURANCE SECTOR DEVELOPMENT ON THE GROWTH OF NIGERIA ECONOMY
MONOGBE TUNDE GABRIEL
Department of Finance and Banking,
University of Port Harcourt,
This study empirically investigates the effect of insurance sector development on the growth of the Nigeria economy. The Augmented Dickey Fuller Test, Ordinary lease Square Method, Descriptive Statistic, Co Integration and granger causality test was applied to annual Nigeria data spanning from 1981 – 2013. The result indicated that there exists a long run equilibrium association between insurance sector development and economic growth. Total insurance investment has a positive and significant association to economic growth while insurance premium is also positively and significantly correlated to economic growth. It was founded that causality flows from GDP to some insurance sector development indicator (TIP, TIN TIR). It was further reveal in the study that insurance claims has a significant but negative association to economic growth and based on the above findings, we hereby recommended that law makers, authority and NAICOM should look into the claims payment policy of the insurance companies so as to ensure transparency, avoid extortion and ensure fair dealings in order to actualize the sectors objective and hence, promote economic growth of our country Nigeria.
Economic growth insurance sector indicator, co–integration, granger causality.