Reviving Economic Recession and the Role of Insurance Companies in Nigeria
Akeem Oladeinde RAJI; Ayodeji Najeem ISIAKA & Olufawo Henry Siji
Department of Insurance, Federal Polytechnic, Ilaro.Ogun State.
Department of Banking and Finance, Federal Polytechnic, Ilaro.Ogun State.
Department of Insurance and Actuarial science, Lagos State Polytechnic,Ikorodu lagos. Email: akeemraji02@yahoomail.com; aolarewaju76@yahoo.com & olufawohenry@gmail.com
ABSTRACT
The persistent reoccurring of poor economic condition during economic recession has put the policy maker on the appropriate approach to tackle the economic problem. Despite the efforts to curb the menace, the economy is still vulnerable to shocks; therefore, this study investigated the role of insurance companies in reviving economic recession in Nigeria. The study covers the period of 25 years from 1996 toData on economic recession was proxied with dummy when 0 represents the period of positive economic growth rate while 1 represent the period of negative growth rate. Data on insurance investment, insurance asset, number of insurance
companies and insurance contribution to GDP that measured with insurance performance were considered as independent variables. Ordinary Least Square method was employed and the result revealed that insurance asset does not capable of reducing
economic recession while insurance investment, insurance performance and number of insurance companies proven to be sufficient to reduce economic recession. Based on the findings, the study concluded that insurance companies played a significant role in reviving economy from recessionary issues. The study recommended that
adequate attention should be given to insurance companies in to fulfill their full potential. Keywords: Insurance, Recession, Gross Domestic Product, employment opportunities.
