INSURANCE PENETRATION AND ECONOMIC GROWTH IN NIGERIA

ABSTRACT
This study investigates the impact of insurance penetration on economic growth in Nigeria applying the multivariate ordinary least square (OLS) technique using time series data from 2000 to 2023. Gross domestic product (GDP) is the dependent variable and proxy for economic growth while insurance penetration was proxy non-life insurance penetration (NLP), life insurance penetration (LP) and insurance density (IND). Overall, findings from the study indicate that non-life insurance penetration, life insurance penetration and insurance density stimulate economic growth in Nigeria within the period under study. From the foregoing, the study concluded that insurance penetration play a pivotal role in the growth of the Nigerian economy for the period studied. The study recommends that insurance firms in Nigeria should ensure that they pay claims as and when due as this will encourage more people to take up insurance policies which will in turn deepen the penetration of insurance sector in Nigeria. Also, vigorous strengthening and policies to steer the deepening of the insurance market should be encouraged. Such measures include the introduction of new and innovative products to encourage more people to take up insurance policy in Nigeria.