FINANCIAL INCLUSION AND ECONOMIC GROWTH: THE ROLE OF INSURANCE SECTOR DEVELOPMENT
FINANCIAL INCLUSION AND ECONOMIC GROWTH: THE ROLE OF INSURANCE SECTOR DEVELOPMENT

Summary/Abstract: This paper extends the existing literature on financial inclusion by considering the role of the insurance sector. Attaining a desired level of financial inclusion has been a challenging issue confronting stakeholder across the globe. Reduced attention given to the insurance industry has, however, frustrated the financial inclusion target of the authorities, which formed the major focus of this study. Thus, this study investigated the influence of financial inclusion on economic growth by taking cognizance of the role of the insurance sector in Nigeria using the ARDL estimation technique from 1981 to 2018. The empirical results revealed that total insurance premium and non-life insurance premium are positively related to economic growth, while life insurance premium is negatively related to economic growth. However, credit to the private sector performs better and contributes positively significantly to economic growth in Nigeria. However, it is, therefore, important for the monetary authorities to give greater attention not only to the bank financial institutions but to other non-bank financial institutions like insurance, pensions, etc., in order to harness the targeted level of financial inclusion in Nigeria.

• Details
• Contents