Fundamental Analysis of Insurance Industry Operations and GDP Increase in Nigeria

Abstract

This study evaluated Insurance Industry Operations (IIO) and GDP Increase in Nigeria. Insurance company core functions, namely: ‘Offering of financial protection to Consumers ‘Investment of Funds from Premium charged’ and ‘Provision of Foreign Insurance Services’ served as proxies for IIO. Survey design was adopted for the collection of data which were analyzed using Pearson Product-Moment Correlation Coefficient (r). The findings showed that the models for hypotheses one and two passed the test of significance but hypothesis three failed it. Thus we concluded that the variables ‘Offering of financial protection to Consumers’ and ‘Investment of funds from Premium’ can be considered relevant to policies formulated to affect GDP Increase in Nigeria but the variable ‘Provision of Foreign Insurance Services’ cannot. We therefore recommend that Managers of Insurance companies should seek to employ innovative strategies in service delivery and sustained efforts should be made by stakeholders to export insurance products across borders to other countries.