Motor insurance business portfolio and the gross premium of insurance industry: A case of Nigeria

Soye Yinka Augustine, Momoh Omowumi Ayoni

Abstract


Purpose of the Research: This study examines the contribution of motor insurance business to the gross premium income of Nigeria insurance industry. Methodology: The research design used for this study is ex-post-facto design. Ordinary least square (OLS) regression model used to analyze the secondary data extracted from statistical bulletin of the Central Bank of Nigeria (CBN) from 1981 to 2011, and Nigeria Insurers Association (NIA) digest from 2012 to 2018. The population for this research is the entire quoted insurance companies in Nigeria. The sample size for the study is 38 years (from 1981 to 2018). Findings: The result of the findings shows that insurance premium of motor has no significant effect on insurance gross premium of Nigeria. In the same vein, insurance premium income of general accident has no significant effect on gross premium income of insurance companies in Nigeria. Implications: The government and insurance regulatory bodies should develop more strategies to ensure high compliance to third-party motor insurance buying in Nigeria. Originality: The originality of study is no doubt because there are very few of studies on motor insurance in Nigeria

Keywords


Fraud, general accident insurance, gross premium, motor insurance, risk

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