THE ROLE OF REINSURANCE IN THE PERFORMANCE OF INSURANCE INDUSTRY IN NIGERIA

ABSTRACT

This research was carried out to study the role of reinsurance in the performance of Insurance Industry in Nigeria. The main objective of the study is appraising the contributions of reinsurance to the performance of insurance companies in Nigeria. The research methodology used was the descriptive research design. Tables and percentages were the tools of analysis employed. Also, inferential statistical analysis was conducted to examine the relationship amongst the variables studied. Regression analysis method was adopted for this purpose. T-statistics as well as F-statistics were used for test of hypotheses and the method of data collection was based on secondary sources in which data were collected from the Statistical Bulletin of the Central Bank of Nigeria (CBN) 2011, Nigeria Insurance Digest and NIACOM reports. The estimation period covers the period 1987 to 2011. The Statistical Package for Social Science (SPSS) was used in carrying out the analysis.  Findings revealed that there is a significant relationship between Reinsurance industry and the Insurance industry in Nigeria. It also revealed that there is a significant contribution of reinsurance to the Nigeria Insurance industry. Based on the findings, it was recommended that the activities of reinsurance should be encouraged to protect and aid the performance of other insurance companies.

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