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Underwriting Risk on the Profitability of General Insurance Companies in Nigeria

Ipigansi, Pretoria, Biewari, Gboloko Moses

Abstract

This study investigated the effect of underwriting risk on the profitability of general insurance companies in Nigeria, focusing on claim frequency risk, claim severity risk, and underwriting pricing adequacy. The study adopted an ex-post facto research design and employed secondary panel data covering the period from 2018 to 2024. The population consisted of ten registered general insurance companies, resulting in seventy observations across seven years. Profitability was measured using return on assets, while underwriting risk was captured through the three specified dimensions. Descriptive statistics were used to summarise the data, and inferential analysis was conducted using panel regression techniques, with the Fixed Effects model adopted following the results of the Redundant Fixed Effects and Hausman tests. The results revealed that claim frequency risk has a significant negative effec...

References

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