INSURANCE RISK MANAGEMENT AND GROSS FIXED CAPITAL FORMATION IN NIGERIA

This study examines the impact of insurance risk management on gross fixed capital formation in Nigeria. The research objectives are to evaluate the impact of life, motor, fire, and accident insurance claims on gross fixed capital formation in Nigeria, determine the factors that influence insurance risk management, and investigate the relationship between insurance risk management and gross fixed capital formation in Nigeria. The study employs an ex-post facto research design, targeting all registered insurance companies in Nigeria and using secondary data collected over a period of 23 years. The findings suggest that motor and fire insurance claims have a significant impact on gross fixed capital formation in Nigeria, while life and accident insurance claims do not have a significant impact. It was recommended, among others, that the Nigerian government should invest in creating an environment that encourages proper risk management practices within the insurance industry. This could include incentivizing companies to conduct risk assessments, develop risk management strategies and invest in risk management technologies.