Effect of exchange rate on total premium of nigerian insurance industry: A managerial perspective

The study investigated the effect of exchange rate on insurance premium of Nigerian insurance industry. Ex-post facto research design was used in the study. A hypothesis was formulated and tested. The data were subjected to a Unit root test to test for stationarity. Afterwards Ordinary Least Square Regression analysis technique was used to test the hypothesis. The test of significance of result of the study was at 5 percent level of significance. It was found that exchange rate had a negative but non-significant effect on insurance premium of the Nigerian insurance industry. The following respective implication of the finding shows that exchange rate had a decreasing effect on total premium. The study based on the aforementioned finding we concluded that the insurance business premium was not significantly and positively influenced by themacro-economic variables (exchange rate). The study recommendedthat investments of the insurance industry should not be limited to the Nigerian economy;financial instruments in more advanced economies with possibility of high returns should be invested in by the industry as itwould help to offset the effect of the devaluation of Naira on their local investments.