The Influence of Inflation in Insurance Business in Nigeria

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Obinna Chilekezi

Abstract

Inflation plays very important role in the operations of an entity in any economy. The insurance industry is not an exception to the influence of inflation in its operations. Inflation could in no small way impact on the growth of the insurance industry. The main aim of this study is to examine the influence of inflation on this sector and how it affects the operations in the sector. The Methodology of the study is both doctrinal and qualitative whilst employing non-random sampling technique. The study used mainly secondary materials and it found from the reviewed literatures that inflation has significant influences on the operation of the insurance business. The study recommends that operators of insurance business should be mindful of the impact of inflation especially in determining the rate of premiums to charge for the non-tariffed products. The study concludes that there is a long run relationship between insurance operations and inflation in Nigeria and a rise in inflation will lead to a rise in cost of running insurance companies.

Keywords: Claim, Inflation, Influence, Insurance, Premium

Article Details

The Influence of Inflation in Insurance Business in Nigeria. (2024). African Journal of Management and Business Research, 13(1), 297-304. https://doi.org/10.62154/qahrt992
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Copyright (c) 2024 Obinna Chilekezi (Author)

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