Insurance plays a vital role in the development of the Nigerian economy and in recent years especially since the establishment of the Nigerian Reinsurance Corporation and the African Reinsurance Corporation Center for African and to some extent for the entire insurance world. In addition to its traditional role of giving insurance protection cover to individuals and corporate bodies against damages or losses arising from an insured event, the insurance industry in Nigeria has played and will continue to play subsidiary roles which helps in the development of the Nigeria economy and in the improvement of the economic and social welfare of the people of Nigeria.
As a financial institution the insurance industry plays a major role in granting of loans for industrial development in the country and most of the insurance companies have invested in the absence of adequate insurance protection.
Over the years insurance companies accumulated a lot of premiums in their insurance funds and services. These premiums are invested in different aspects of the national economy either in government sponsored or private enterprises.
In Nigeria insurance companies are required by law to invest part of their funds in government securities and these investments plays very crucial roles in the development of the national economy.
Insurance company encourage savings, saving is a major development factor of any modern economy and Nigerians in general find it difficult to save. Life assurance is one important method of saving for the rainy day. Life assurance indirectly encourages thriftiness and accordingly the number of thrifty persons within an economy is strengthened.
Insurance increases the risk awareness of the member of the public these industries especially in recent time has played a vital role creating risk awareness to the public. They have reasonably accomplished this through symposia, publications, advertisement etc.