RISK MANAGEMENT, INTEREST RATE AND PERFORMANCE

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ABSTRACT

Life insurance firms have long struggled to develop a simple satisfactory model of risk management and interest rate over time. As a result, this study aims to examine the impact of interest rates and risk management on the performance of life insurance firms in Nigeria. Panel data analysis was adopted using the Hausman test that specifies a random effect panel regression model to run the analysis of this study. The Panel regression model result shows that there is a significant relationship between interest rate and risk management regarding the performance of the life insurance firm. Furthermore, the interest rate, liquidity risk management and premium growth have a positive significant impact on the performance of the quoted life insurance firm under review while the firm size has a negative significant impact on the performance of the insurance firm. Therefore, regardless of the size of the insurance firm in Nigeria, the focus of the insurance company should be on having attractive premiums, and interest rates while ensuring risk management practices are incorporated into their daily operation to thrive and also have a favourable performance growth

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