Insurance Claim Settlement and Economic Growth in Nigeria

The study examined the impact of insurance claim settlement on economic growth in Nigeria. This study used an annual time series data ranging from 1990 to 2023. The variables in the model include gross domestic product (GDP) as the dependent variable while life assurance (LIA), fire insurance (FIN), motor insurance (MOI) and oil and gas insurance were captured in the model as the explanatory variables. The study employed autoregressive distributed lag (ARDL) model to analyze the time series data. Findings from the unit root test showed that GDP and FIN were stationary at level while LIA, MIO and OGI were stationary at first difference. The cointegration test result from the ARDL bounds test showed that the variables are cointegrated, which implies that the time series variables considered have long-run equilibrium relationship. Finding from the ARDL regression result showed that; the coefficients of life assurance (LIA) and fire insurance (FIN) were positive and insignificant to gross domestic product (GDP) while motor insurance (MIO) and oil and gas insurance (OGI) were positive and insignificant to gross domestic product. The study recommended among others that stable financial and economic policies like institutional monitoring mechanism should be put into cognize to monitor risks suffered by the insured, so as not to falsify and magnify risk indemnity that will jeopardize the future viability of the insurance sub-finance sector that will not affect the growth of Nigeria economy from the part of insurance sector.