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Article Title:
The Effect of Insurance Business on Economic Development in Nigeria
by Anthony Adekunle Owojori and Luke Olusola Oluwagbuyi

Abstract:
This study investigates the contribution of insurance to economic development in Nigeria. As a descriptive survey, the study comprised all the 50 insurance companies in Lagos State, Nigeria out of which a sample of 10 companies were selected. Out of the 20 life and 30 non-life insurance in the sample, 4 life and 6 non-life insurance were selected using random sampling techniques. The instrument used for the study was a questionnaire designed, validated and found reliable for the study. The findings showed that problem among insurance companies were lack of funds which leads to claim avoidance. There was no significant difference between performance of insurance policy in urban and rural areas. The findings also revealed insurance companies provide financial services to some substantial number of people in the economy. The findings further revealed that insurance helps in capital accumulation than payment of reparation of loses. Based on findings, it was recommended that there should be a cheap means of handling risks to the insured in view of the fact that the principle of large number is brought to bear in the practice and operations of insurance. The state government should enhance the participation of individuals and corporate bodies by generating incentives strategy, upgrading infrastructures enhance human capital development and creating a favourable climate for insurance investment.

Keywords: insurance, premium, risk, insurance policy, risk management.

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