MACROECONOMIC DETERMINANTS OF LIFE INSURANCE PENETRATION IN NIGERIA

ABSTRACT

The study examines the macroeconomic determinants of life insurance penetration rate in Nigeria for the period 2000 - 2023. The specific objectives of the study were to ascertain the effect of income (INCM), carbon emission (CARB), inflation rate (INFL), interest rate (INTR) and money supply (MNYS) on life insurance penetration rate in Nigeria. Secondary data were extracted from the Central Bank of Nigeria Statistical Bulletin. The study adopted a multivariate OLS analysis for the estimation process and the data were regressed and analysed with the aid of Eviews 9.0 econometric software package. The findings of the study indicate that income (INCM), carbon emission (CARB), inflation rate (INFL), interest rate (INTR) seems not to be key macroeconomic determinant of life insurance penetration in Nigeria. However, money supply (MNYS) seems to be the only macroeconomic factor that exerts a significant positive effect on life insurance penetration in Nigeria. We therefore recommend that the adoption of macroeconomic policies like increase in money supply which will further stimulate life insurance penetration in Nigeria. Also, the ongoing domestic insurance sector reform should be continued and strengthen to conform to the requirement of globalization and global competition Government should always properly maintain macroeconomic stability. Finally, the regulatory and supervisory framework should be further strengthened to ensure stability and promote public confidence in the insurance sector.