MARKETING MOTOR INSURANCE POLICY AND ECONOMIC GROWTH IN NIGERIA

Abstract

This of this study is to examine: marketing motor insurance policy and its effect on the Nigeria economy using times series data for the period 1980-2020 sourced from CBN statistical bulletin and NAICOM. The Error Correction Model (ECM) technique was adopted. The study's findings demonstrated that revenue from auto insurance had a statistically significant, beneficial effect on Nigeria's GDP growth. It was also determined through this analysis that insurance investment has a positive, significant effect on economic growth in Nigeria, while motor vehicle insurance claims, as a component of measuring insurance activities in Nigeria, had a negative effect. Based on these results, the study concludes that companies have two options for responding to a surplus in demand. Either prices should be raised, hopefully reducing demand, or investments should be increased to meet that demand. The majority of insurance firms would rather increase their market share and earnings than slow down their expansion as a result of investor fatigue. Based on the results of this research, the National Insurance Commission (NAICOM) is urged to enforce the mandatory group life insurance policy in the workplace and take legal action against companies that ignore this regulation. Prudence dictates that reforms be maintained that foster growth in the financial sector, particularly the life insurance industry, which has the potential to serve as a captive source of long-term financing option for the economy. The insurance business in Nigeria needs the help of the National Insurance Commission (NAICOM) to become more open and productive. This would significantly reduce the barriers that prevent Nigerian people and businesses from purchasing life insurance.