Effects of Insurance Business Operation on Economic Growth: A Study of Plateau State: An Analytical Approach

Abstract

The main objective of this study was to examine the effects of insurance business operation on economic growth in Plateau State. The paper used a descriptive research design; the population of the study was 121.Data was analyzed using descriptive statistics (which include means and standard deviations) and the Ordinary Least Square (OLS) regression method through the use of E-Views. Findings from the study revealed that there was a significant and positive relationship between insurance policies effectiveness on business expansion and operation in Plateau State. It was also confirmed that Insurance service providers have indeed significantly enhanced customer's patronage in Plateau State. The study further showed that Insurance industry has impacted significantly and positively to pool of savings in Plateau State. The study recommended that more efforts should be made to increase transparency and efficiency in insurance industry through adequate legislation and policy formulation targeted at providing institutional improvement, especially in risk management and product innovations in insurance industry to sustain business operations and growth; through effective risk transfer mechanism and financial intermediation, insurance industry should contributes to the growth of Plateau State economy and at the same time, the insured will concentrate their attention and resources on core insurance business that can lead to pooling of savings meant for real investment and high economic growth; and finally, the regulatory authorities should look into the activities of insurance company and come up with well-defined and clear statement that will increase the level of patronage in insurance industry in Plateau State.