Insurance Risk Management: A Correlate of Economic Growth in Nigeria

Abstract

This study empirically investigate the impact of insurance risk management through the window of claims payment on the growth in the output level of Gross Domestic Product in Nigeria. Claims payment-economic growth model patterned after multivariate regression, causality and dynamic model of linear formation were estimated and analyzed. The analysis reveal that, in the long run, insurance claims paid on fire, Accident, motor vehicle, employers’ liability and marine policies significantly impact on the output level of Gross Domestic Product in Nigeria. Indemnification successes ginger up the productive quality of existing stock of capital and ensure the continuity of businesses in the economy thereby boosting output performance. The author recommend improved insurance awareness, patronage and prompt claims payments.

Keywords: Risk Management, Economic Growth, Nigeria.