Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
The Empirical Analysis of the Impact of Inflation on the Nigeria Insurance Industry
by Festus M Epetimehin and Obafemi Fatoki

Abstract:
The recent contribution of high rate of inflation and a general poor economic performance of Nigeria has presented a serious problem to the insurance industry. This paper uses the Insurance Industry to show that the persistent high rate of inflation in the Nigeria economy are creating serious problem for the rapid growth of the Insurance Industry. This study focused on the Life Insurance product of the Industry which provides a unique product of Insurance Protection and the effect on the product over the years. It is an aspect that provides savings plans and in direct competition with other investment assets from the commercial banks, savings associations, mutual funds, real estate, and also whole life policies. The study covers the period from 2003-2007 The first part of this paper discusses the types of life insurance products and the effect inflation has on the demand and costs of the policies. The second part looks at the historical performance of the Insurance Industry during the high inflationary period of 2003-2007. Finally, conclusions and corporate policy implications for the insurance industry are presented

Keywords: inflation, insurance, investible funds, developed economy, life insurance

Download full paper