INSURANCE

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.

This study examined the effect of corporate governance mechanisms on the performance of listed insurance firms in Nigeria over the period 2015 to 2024. The main objective was to investigate how board independence, board diversity, board size, and CEO duality influence firm performance measured by return on assets. The study adopted an ex-post facto research design and relied on secondary data obtained from the published annual reports of ten purposively selected insurance companies listed on the Nigerian Exchange Group. The population comprised twenty-eight listed insurance firms as of December 2024. The study employed panel data analysis using both the Fixed Effects and Random Effects models. The Hausman specification test was conducted to determine the most appropriate model for estimation, and the test result favoured the Fixed Effects model. Descriptive statistics and correlation analysis were used to summarise the data and examine the relationships among the variables, while regression analysis was applied to test the study hypotheses. The findings revealed that board independence, board diversity, and board size each have a positive and statistically significant effect on firm performance, whereas CEO duality has a negative and significant effect. The results imply that firms with more independent and diverse boards and optimal board sizes perform better financially, while those combining the roles of CEO and board chair tend to underperform. The model explained approximately 61.1 percent of the variation in firm performance, indicating a strong explanatory power. The study concludes that effective corporate governance mechanisms are crucial for improving profitability and ensuring the long-term sustainability of insurance firms in Nigeria. It recommends that companies should strengthen board independence, promote gender diversity, maintain optimal board sizes, and separate leadership roles in order to enhance accountability, transparency, and performance. The study contributes to existing literature by providing empirical evidence from the Nigerian insurance industry and by demonstrating the applicability of panel data techniques in assessing governance–performance relationships in emerging markets.

In this study, the effect of financial development on insurance penetration in Nigeria sector for the period 1995 – 2022 was investigated using ordinary least square (OLS) technique. Financial development indicators utilized in the study includes broad money supply and credit to private sector while insurance sector penetration rate was the dependent variable. We estimated a regression model and the result reveals that broad money supply has negative and insignificant impact on insurance penetration in Nigeria while credit to private sector was positively and significantly related to insurance penetration. The study recommends that regulatory authorities charged with the sole responsibility of ensuring the macroeconomic stability of Nigeria should ensure that more credit should be extended to the private sector in other to further deepen insurance penetration rate in Nigeria. Also, the negative and insignificant effect of broad money supply on insurance penetration in Nigeria calls for the strict reevaluation of the present monetary policy tools as regard the volume of money in circulation to ensure that it contribute significantly to insurance penetration rate in Nigeria.