General Insurance Operations and Real Sector Performance in Nigeria

Abstract

This study examined the significance of general insurance operations on real sector performance in Nigeria. The lack of commitment to policies that could strengthen the macro-economic environment to allow for viable insurance industry to thrive is a major obstacle which adversely affect real sector performance. Secondary data and multiple regression method were used in the study. The effect of general insurance was measured through five different proxies such as general insurance penetration, general insurance premiums, general insurance investment and general insurance claims paid and real sector output. Time series data for the period 2000-2021 (21 years) were collated through the Central Bank of Nigeria (CBN) statistical bulletin. The data was analyzed using line graph trend and multiple linear regression method. The findings of the study revealed that general insurance operations had a positive and substantial effect on real sector output in Nigeria during the period under study. The study recommends among others that insurance companies should offer products that are affordable to all class of individuals and businesses which would in turn, help boost insurance business and allow for wider market penetration. More awareness about the existence of insurance should be created, this will help expand the industry.  

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