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International Journal of Innovation and Scientific Research
ISSN: 2351-8014
 
 
Saturday 15 August 2020

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THE CAUSAL RELATIONSHIP BETWEEN LIFE INSURANCE BUSINESS AND ECONOMIC GROWTH IN NIGERIA


Volume 4, Issue 2, July 2014, Pages 100–109

 THE CAUSAL RELATIONSHIP BETWEEN LIFE INSURANCE BUSINESS AND ECONOMIC GROWTH IN NIGERIA

Obinna Darlington Madukwe and Dr. Mike Anyanwaokoro

Original language: English

Received 14 April 2014

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.