AN INVESTIGATION OF THE EFFECT OF PENSION FUNDS ON THE INSURANCE INDUSTRY IN NIGERIA

Abstract

Asides from its primary role of ensuring a comfortable standard of living to retirees at retirement, pension also serves as source of premium income for insurance companies. This research set out to examine how Nigeria's insurance industry have been affected by pension funds. Through the use of an ex-post facto study design, data of sixteen (16) year period (2006-2021) was extracted from the PenCom and NAICOM annual reports, multiple regression analysis via the SPSS was used to analyzed the extracted data. The gross premium income of Nigeria's insurance market was found to be significantly impacted by both public and private pension funds. The study recommend that the Pension Commission (PenCom) should make sure that firms obtained the group life insurance policy as required by section 4(5) of the PRA 2014 as economic experts believe that the contributory pension scheme is yet to maximize its ability to enhance the insurance industry growth. The National Insurance Commission (NAICOM) as well as the insurance companies should also educate people on the benefit of choosing the life annuity option of retirement benefit.