ABSTRACT
This study examines the implication of
life assurance patronage on the Nigeria economy. The nature of life
insurance business should do with the indemnification of the insured or
the insured’s beneficiary on the maturity of the life insurance contract
or on the death of the life assured. Life insurance patronages in
Nigeria are confronted with several challenges that hinder its impact on
the Nigeria economy which include; inflation, political instability,
low domestic saving, customers lack familiarity with life assurance
products, interest rate and low income. However, the objective of this
study is to show the implication of life assurance gross premium on
insurance companies assets, to examine life assurance business in
Nigeria, to examine the implication of life assurance patronage and
hence its importance to the Nigeria economy. In order to achieve the
objectives of this study, data were collected from secondary sources and
analyzed descriptively. In testing the research hypotheses, the simple
linear regression was used. The result showed an R2 value of
0.754 which indicates that 75.40% of the variations in total assets of
insurance companies (TAIN) can be explained by the independent variable
which is life assurance gross premium (LAGP) while the remaining 24.60%
would be due to other factors not considered in the model. At 5% level
of significance and f-value of 24.562 which is greater than the table
value of 5.978, the null hypothesis was rejected and the alternative
hypothesis was accepted which established that there is a significant
relationship between life assurance gross premium and the total asset of
insurance companies (which is the economic indicator for this study),
which implied that there is a significant relationship between life
assurance patronage and the Nigeria economy. This study reveals that
life assurance patronage affects Nigeria economy positively through the
funds accumulated from life assurance patronage. It is recommended that
there should be; proper management of fraudulent activities, proper and
effective awareness of life insurance products, development of domestic
financial market, and provision of professional training for all life
insurance staffs.