ABSTRACT
The main objective of this study is to examine the insurance risk management and economic growth in Nigeria. The specific objectives are to: find out if changes in claims payment by insurance companies important in explaining changes in the output level of Gross domestic products in Nigeria, examine the impact of deposit insurance companies on economic growth in Nigeria, determine the impact of insurance firm credit on economic growth in Nigeria, and investigate the relationship between insurance firms investment and economic growth in Nigeria. To facilitate this study, various hypotheses were proposed on the relationship that seems to exist between insurance risk management and economic growth in Nigeria. The study covers the period 2008 to 2018. Secondary source of data was used in this study.
Analytical techniques employed to empirically examine the relationship between four variables include: descriptive statistical analysis, correlation matrix, unit root test, diagnostic test, ordinary least square regression method, vector error correction mechanism (VECM), co-integration test, granger causality test, impulse response analysis, variance decomposition analysis.
The study concludes that that the specific part of the insurance business which affect the growth of the economy in Nigeria is those one that have sufficient patronage from the consumers of insurance product in the economy. Base on the empirical findings of this study, the following recommendations are suggested for policy action; the regulators of the insurance firms should ensure that more laws are established to increase the insurance product that will cover more consumers, Industry players and government economic policy makers should ensure compliance in doing their business that require some purchases of some of the insurance product to ensure effective confidence for businesses in the economy, insurance firm should ensure that there are liquid assets and other needed assets sufficient for claim payment that may not hinder the growth of the insurance business and the body responsible for regulating and educating the public should ensure effective enlightenment campaign and information for the public to create awareness and encourage patronage of insurance products in the economy.
