International Journal of Advanced Research in Management and Social Sciences
  • Year: 2018
  • Volume: 7
  • Issue: 5

Financial deepening reform and insurance premium in Nigeria, 1986-2016-VECM Approach

  • Author:
  • Clifford Anene Ezema1, Kenneth Chukwudi Ezekwe2
  • Total Page Count: 17
  • Page Number: 57 to 73

1Department of Insurance and Risk Management, Faculty of Management Sciences, Enugu State University of Science and Technology, (ESUT)

2Department of Insurance, School of Financial Studies, Federal Polytechnic, Oko, Anambra, Anambra State, Nigeria

Online published on 5 December, 2019.

Abstract

The study measured the Impact of Financial deepening reform to Insurance Premium in Nigeria, 1986 to 2016 using Vector error correction model as the method of estimation. The analyses of residuals of the Johansson co-integration reveal evidence in favour of co-integration between Financial deepening reform to Insurance Premium in Nigeria, Similarly, estimates from the error correction model provide evidence to show that Financial deepening reform to Insurance Premium in Nigeria, converge to a long-run equilibrium at a reasonably slow rate. The result points to the fact that the financial deepening reform stimulate Insurance Premium in Nigeria, and if well managed can engineer the economic growth positively and significantly. It was recommended that Insurance companies should employ financial deepening reforms to improve the financial status of their company and as well the economy by allowing insurance sector to embrace the benefits.

Keywords

Insurance premium, Broad Money Supply, Credit, Private Sector, Co-integration, Error Correction Model, Financial depth