IMPLICATIONS OF SELECTED MACROECONOMIC INDICATORS ON INSURANCE CLAIMS COMPENSATION IN NIGERIA, 1983-2024

This paper study’s the implications of macroeconomic indicators on Insurance Claims payment in Nigeria 1983-2024. Precisely the study surveyed the implications of inflation rate on insurance claims payment in Nigeria, Investigate the implications of interest rate on insurance claims payment in Nigeria, Assess implications of foreign exchange rate on insurance claims payment in Nigeria, find out the effect of poverty rate on insurance claims payment in Nigeria. The study adopted ex-post facto research design and data used for the study was the year account statements of National Insurance Commission (NAICOM), Nigerian Insurance Digest and Central Bank of Nigerian within the period of 1983 to 2024. Ordinary lease square method (OLS) was used in testing the hypotheses formulated. The study revealed that Inflation rate with (pvalue=0.0655>0.05) have positive and non significant effect on total claims paid by insurance industry in Nigeria; Interest rate with (pvalue=0.0042 < 0.05) have positive and significant effect on total claims paid by insurance industry in Nigeria. Foreign exchange rate with (pvalue=0.0061<0.05) have positive and significant implications on total claims paid by insurance firms in Nigeria, Poverty rate with (pvalue= 0.1061>0.05) have positive and non significant implications on total claims paid by insurance firms in Nigeria. The study recommended among others that Insurers should be advised to have different investment portfolio. Government must always make use of its fiscal and monetary policies to maintain a low interest rate to support investors in insurance companies. Foreign exchange risk can be mitigated by ceding higher percentage of large risk or risks with high influence on foreign re-insurers.