ABSTRACT

The research looks empirically at the effect of insurance investment funds over a 32-year period on economic development in Nigeria (1990 to 2021). The real gross domestic product was regressed against four associated variables, including the insurance investment rate (TINVR), insurance premium (INPR), insurance penetration (INPEN), and insurance income (INCOM) (proxied for economic growth). The findings of the empirical research show that insurance premium (INPR) has a considerable negative impact on economic development in Nigeria, according to the fully modified least square (FMOLS) method. In contrast to the insurance investment rate (TINVR) and insurance income (INCOM), which have no discernible effects on economic development, insurance penetration (INPEN) shows a substantial positive link with economic growth. The study suggests, among other things, that the insurance management in Nigeria review their current model of premium charges to reflect modern premium ratios charged in other jurisdictions. By doing this, they will be able to prevent a situation where premium are under charged because insurance premiums have a significant negative impact on economic growth. In order to enhance present levels of revenue, they must also assure effective allocation of premium profits for lucrative projects.