Does Insurance Promote Economic Growth: Evidence From Nigeria

Insurance plays an essential role in economic growth. This study analyses the contribution of insurance to economic growth in Nigeria. The research utilised an ex-post facto design, using 28-year time series data (1992 - 2019). The study's dependent and independent variables were gross domestic product (GDP) and insurance (life and non-life) premiums. The long-run co-integration result indicated that non-life premium (NLP) positively impact GDP. The coefficient shows that a percentage increment in NLP results in a 5.63 increase in GDP. The long-run co-integration results suggested that life premium (LP) positively impacts GDP. The co-efficient also shows that a percentage increment in LP results in a 4.25 increase in GDP. The results revealed a significant positive contribution of insurance to economic growth. It indicates a significant positive impact of insurance (life and non-life) premiums on economic growth in Nigeria. The results suggest that insurance contributes positively to a nation's economic activities and promotes economic growth. The government should formulate and implement economic policies to stimulate insurance activities, enforce statutory insurance and sound corporate governance.