Volume 4, Issue 2, July 2014, Pages 100–109
Obinna Darlington Madukwe1 and Dr. Mike Anyanwaokoro2
1 MSc Student, Department of Insurance Enugu State University of Science and Technology (Esut), Enugu, Nigeria
2 Senior Lecturer, Department of Banking and Finance Enugu State University of Science and Technology (Esut), Enugu, Nigeria
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study investigated the causality of the relationship between life insurance business and economic growth of Nigeria for the period 2000-2011. Pearson's Product Movement Correlation Coefficient was used to test the hypothesis to determine the extent of the causality of the relationship between life insurance business and economic growth. The researcher graphically measured the ratio of life insurance premium to Gross Domestic Product (GDP). The study revealed that there was significant causal relationship between life insurance business and economic growth of Nigeria. It was also discovered that despite the high degree of the causality of the relationship between life insurance premium and GDP, that life insurance premium has not been able to make a meaningful contribution to economic growth of the country. The study concluded that life insurance business has not effectively contributed to the growth of Nigeria economy due to low consumption, and that individual and corporate organizations have failed to embrace life insurance policies in Nigeria. The researcher therefore, recommended that National insurance commission (NAICOM) should enforce the compulsory group life insurance policy, and ensure that there is high level of transparency initiative and efficiency in Nigeria insurance industry. This would go a long way in mitigating the factors that hinder individuals and organizations in embracing life insurance policies in Nigeria.
Author Keywords: Life Insurance, Premium, Economic Growth.
Obinna Darlington Madukwe1 and Dr. Mike Anyanwaokoro2
1 MSc Student, Department of Insurance Enugu State University of Science and Technology (Esut), Enugu, Nigeria
2 Senior Lecturer, Department of Banking and Finance Enugu State University of Science and Technology (Esut), Enugu, Nigeria
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This study investigated the causality of the relationship between life insurance business and economic growth of Nigeria for the period 2000-2011. Pearson's Product Movement Correlation Coefficient was used to test the hypothesis to determine the extent of the causality of the relationship between life insurance business and economic growth. The researcher graphically measured the ratio of life insurance premium to Gross Domestic Product (GDP). The study revealed that there was significant causal relationship between life insurance business and economic growth of Nigeria. It was also discovered that despite the high degree of the causality of the relationship between life insurance premium and GDP, that life insurance premium has not been able to make a meaningful contribution to economic growth of the country. The study concluded that life insurance business has not effectively contributed to the growth of Nigeria economy due to low consumption, and that individual and corporate organizations have failed to embrace life insurance policies in Nigeria. The researcher therefore, recommended that National insurance commission (NAICOM) should enforce the compulsory group life insurance policy, and ensure that there is high level of transparency initiative and efficiency in Nigeria insurance industry. This would go a long way in mitigating the factors that hinder individuals and organizations in embracing life insurance policies in Nigeria.
Author Keywords: Life Insurance, Premium, Economic Growth.
How to Cite this Article
Obinna Darlington Madukwe and Dr. Mike Anyanwaokoro, “THE CAUSAL RELATIONSHIP BETWEEN LIFE INSURANCE BUSINESS AND ECONOMIC GROWTH IN NIGERIA,” International Journal of Innovation and Scientific Research, vol. 4, no. 2, pp. 100–109, July 2014.
