REINSURANCE UTILISATION AND DEPENDENCE ON THE FINANCIAL PERFORMANCE OF NON-LIFE INSURERS: EVIDENCE FROM NIGERIA
DOI:
https://doi.org/10.29358/sceco.v0i28.428Keywords:
Financial performance, loss ratio, premium growth rate, primary insurers, reinsuranceAbstract
Reinsurance is used by primary insurers as a device to cushion the effect of underwriting and solvency risks. However, an overdependence on reinsurance could cause depletion in the income of the primary insurer. The study examined the effect of reinsurance on the financial performance of non-life insurers in Nigeria. Secondary data used for this research were analysed with descriptive statistics, coefficient of determination (R2), and linear regression. Results showed a significant positive relationship between reinsurance utilisation and premium growth rate. Similarly, a significant positive relationship was found between reinsurance dependence and profitability (loss ratio). It was recommended that non-life insurers should embrace more of reinsurance facilities particularly for risks of high loss potentials in order to stabilise premium growth rate. In addition, Insurance firms in Nigeria should harness their claims management activities in order to minimise cost and exposure to underwriting risks.Downloads
Downloads
Additional Files
Published
Issue
Section
License
Authors who publish with Studies and Scientific Researches. Economics Edition (SCECO) agree to the following terms:
-
Copyright Retention
Authors retain full copyright over their work and grant the journal the right of first publication. The published article is simultaneously licensed under the Creative Commons Attribution 4.0 International License (CC BY 4.0). This license permits others to:-
Share — copy and redistribute the material in any medium or format
-
Adapt — remix, transform, and build upon the material
for any purpose, even commercially, as long as proper attribution is given to the original author(s) and source.
-
-
Additional Distribution
Authors may enter into separate, non-exclusive contractual arrangements for the distribution of the journal’s published version of the work (e.g., post it to an institutional repository, include it in a book), with clear credit to the initial publication in SCECO. -
Preprint and Open Posting Policy
Authors are encouraged to post their work online (e.g., in preprint archives, institutional repositories, or personal websites) before submission, during review, and after publication.
This practice supports academic exchange and can lead to earlier and broader dissemination and citation of published work.
(See: “The Effect of Open Access” – PLOS)
For further inquiries regarding copyright, licensing, or archiving, please contact the editorial office at Editorial Board