IMPACT ANALYSIS OF INFLATION AND NON-LIFE INSURANCE BUSINESS IN NIGERIA

C. P.  EHIOGU; H. A. DURUECHI

C. P. EHIOGU Department of Insurance and Actuarial Science Imo State University, Imo State-Nigeria.
H. A. DURUECHI Department of Banking and Finance Imo State University, Imo State-Nigeria.

Keywords: Inflation, Nonlife, Insurance, Premium, Claims, Asset

Abstract

This study investigated Inflation and its contribution to General Insurance Business in Nigeria from 1996-2018. The ex-post facto-experimental research design was adopted since we do not have control over the variables of interest. The secondary data used for the study were obtained from the Central Bank of Nigeria (CBN) statistical bulletin and the National Insurance Commission (NAICOM) statement of accounts for various years. The Ordinary Least Square (OLS) regression technique was employed to test the hypotheses of the study. The findings of the study revealed that the inflation rate did not significantly impact total premium, total claims, and total assets of the non-life insurance sector in Nigeria. Based on the findings of the study it modified into conclusion that the inflation rate did not significantly impact on nonlife insurance sector in Nigeria. It was recommended that insurance organizations can't conquer some of their inflationary traumatic conditions in isolation. The assistance of various economic institutions which includes banks, pensions, and capital markets is needed to allow the business enterprise to achieve its entire potential.