Abstractthis project is on the role of insurance companies in nigeria economic development the insurance industry, from all indication plays a vital role in nigeria economic development as well as in the problem of risk management in nigeria it is very obvious that the majority of the public who are ignorant of the. 1department of economics, adeyemi college of education, ondo, nigeria 2department nomic growth in sub-saharan africa which means that a well- developed insurance sector is necessary for the economic the results also show that human capita has positive significant impact on economic growth. The study population comprises 56 insurance companies in nigeria reinsurance and performance of the ceding companies: the nigerian insurance industry experience impact of insurance market activity on economic growth in nigeria (doctoral thesis), university of nigeria, nsukka, nigeria. Get free research paper on role of insurance company in the economic development of ghana project topics and materials in nigeria this is approved for students in accountancy, business, computer science, economics, engineering, arts the importance, effect, causes, relationship, comparison, history, role, solutions. Despite its importance for economic development, the gross premium collected by insurance companies in nigeria is about 19 billion united states dollars compared to the 38 billion united states dollars collected in south africa in the united kingdom, the insurance industry contributes about 20% of the. To 1918, when marine insurance was dominant in the economy the paper 16 repositioning insurance industry the nigerian case 1 introduction prior to the introduction of insurance, there were some forms of traditional from the current 6% to 30% in 2012, grow insurance contribution to gdp from. Nigerian gdp at purchasing power parity (ppp) has almost tripled from $170 billion in 2000 to $451 billion in 2012, although estimates of the size of the informal sector (which is not included in official figures) put the actual numbers closer to $630 billion correspondingly, the gdp per capita doubled from $1400 per person. With a growing population of 170m and penetration still low, nigeria's insurance sector holds much latent potential in demographics alone for investors for now, penetration stands below 1% and has not kept pace with gdp growth the impact in 2014 should be substantial through improved cash flow and margins.
Nigeria's economy, underpinned by oil (the country is the world's 10th largest oil role in the future development of nigeria's life insurance market that takaful has the potential to become a strong segment of nigeria's insurance sector, says mr ezamshah ismail of rga global reinsurance co nigeria abuja lagos 58. According to nigeria's there have been 12 acquisitions of insurance companies in the last three years and standard alliance insurance is one of them the insurance company has merged with its sister company standard life assurance advertisement tags bode akinboye closing bell economy. This work examined the contributions of the insurance industry to the gross domestic product (gdp) in nigeria the researcher recommended an increased supervisory role of naicom (national insurance commission), prompt payment of premiums, effective utilisation of insurance funds, research,.
Impact of insurance on economic growth is discussed third, we discuss the methodology adopted in the work and then provide the empirical results the last section contains the concluding remarks overview of insurance sector in nigeria the british colonial government introduced insurance business into nigeria in 1910. The discoveries were that insurance sector growth has contributed significantly to the economic growth in nigeria within the period of the study premium income of insurance industry has a positive influence on gdp but behaves insignificantly in explaining the changes in the contribution of insurance industry to the.
Download citation | the impact of insura | in the last decade, most studies on the interaction between the financial sector and economic growth has focused mainly on the banks and the stock market recently, growing attention has shifted to the interaction between the non-bank financial inter. Industry babalola(2008) stated that nigerian economic planning and development which started after independence in 1960 has experienced setbacks and difficulties due to poor performance of most important sectors of the economy especially the financial service sectors of which insurance plays a central role economic. Insurance fraud as a global economic problem threatens the financial strength of insurers and threatens the survival of the insurance institution summit that will discuss effects of insurance fraud on the industry with a view to identifying specific roles and responsibilities of each stakeholder group in tackling the problem. Abstract insurance arises from a contract between an insurer and an assured/ insured, whereby the former undertakes to provide against a risk on behalf of the latter the main function of insurance companies is to provide compensation against risk and also to provide long-term capital to government and.
Stakeholders in the nation's insurance sector have called on governments at all levels, and the private sector to support the insurance industry to play its role in galvanising the economy the chairman, the nigerian insurers association (nia), eddie efekoha, argued that for any meaningful economic. Nigeria re enjoys, has today outlived its usefulness legal cession is however not the only issue in reinsurance in nigeria also of importance is the need for the government to create a conducive, macro-economic environment for the practice of insurance (and reinsurance) in nigeria it is the lack of this that has led to the.
The indigenisation of the insurance industry in the early 1970s and the promulgation of the insurance decree of 1976 had streamlined the activities of the industry that will enable it to have enough retention capacity and thereby play a critical role in the growth and development of the economy (otive, 2010) since then, the. Technological progress will not have significant and substantial impact on the economic development and growth the main objective of this article is to investigate the link between the insurance sector development and economic growth of nigeria and hence to fill a gap in the current finance-growth nexus.
The insurance industry is a highly specialized industry that gives greater security to the fortunes of common people and among the whole society it is one of the financial institutions in nigeria today that aid economic development and growth egeria (1996:5) describes insurance as handmade of commerce. Although, the literature (skipper, 1997) has highlighted the contribution to life insurance sector on economic growth, it has hardly been studied empirically especially in developing countries and those with low-income the empirical studies on impact of the development of life insurance sector on growth are. The importance and roles of insurance industry in nigerian economy insurance industry is a very vital aspect of nigeria economy, and its importance.