Nigerian Journal of Banking and Financial Issues (NJBFI)

IMPACT OF REINSURANCE UTILISATION ON THE CLAIMS’ EFFICIENCY OF NON-LIFE INSURANCE COMPANIES IN NIGERIA

Authors

  • Olufemi Adebowale Abass Author
  • Abibat Olubukonla Shomuyiwa Author
  • Temidayo Jerry Olubusade Author
  • Rashidat Abiodun Sulaimon Author

Keywords:

Reinsurance utilisation, claims management, gross claims ratio, net claims ratio, reinsurance dependence, reinsurance recoveries

Abstract

The study investigated how the use of reinsurance affects the efficiency of claims processing among non-insurance companies in Nigeria. Ex-post facto research design was adopted, using secondary data from the financial reports of non-insurance companies. Data were analyzed using regression analysis through E-views. The study revealed that reinsurance utilisation (reinsurance dependence and reinsurance recoveries) has a significant combined impact on gross claims and net claims ratios with P value of 0.0000. The paper concluded that non-life insurance companies in Nigeria are inefficiently utilising reinsurance arrangements. Hence, claims management is compromised, highlighting the need for proper measures to ensure reinsurance fulfills its intended purpose. Therefore, study recommended that insurers adopt a balanced approach to reinsurance and conduct regular reviews of their reinsurance strategies to ensure they effectively mitigate risks.

Cover page

Downloads

Published

2026-01-22

Issue

Vol. 11 No. 1 (2025): Nigerian Journal of Banking and Financial Issues (NJBFI)

Section

Articles