TITLE:
Performance Evaluation of Motor Insurance Companies: Panel Data Evidence from Nigeria
AUTHORS:
G. U. Ugwuanyim, D. E. Onwuegbuchunam, D. C. Bartholomew, C. C. Anikpe
KEYWORDS:
Motor Insurance, Premium Earned, Claims Settlement, Managerial and Tech-nological Performance, Fixed Effects Regression
JOURNAL NAME:
Journal of Transportation Technologies,
Vol.11 No.3,
May
19,
2021
ABSTRACT: This
paper evaluated performance of motor insurance companies in Nigeria. The
objectives were to determine the following: 1) significant effects of claims
settlements on motor insurance firms’ earned premium; 2) differences in
managerial/technological capabilities among the companies and 3) effects of
policy (or time effect) on insurance firms’ output within the study period. Panel data obtained for this study
comprised operational data on premium earned and direct claims
settlement by these companies over a period of
six (6) years. Using panel data statistical models, we found that direct claims settlement negatively affected insurance companies’ earned premium. Also, significant differences in technological and
managerial capabilities were found to exist among the companies, though
only one company exhibited this heterogeneity. Besides, there were no policy
impacts (or time effect) on vehicle insurance firms’ output in the study
period. Policy implications of the results were discussed.