Effect of Insurance Funds on Human Development Index in Nigeria

The main objective of this study was to evaluate the effect of insurance funds on human development index in Nigeria between 2012 and 2022. The design adopted for this study was ex-post-factor; data used for analysis were elicited from Central Bank Statistical Bulletin, World Bank Developmental Indicators Data base and National Insurance Commission Annual Reports. To achieve this objective, a model was formulated based on empirical and theoretical reviews. The model used human development index in Nigeria as the dependent variable, while life insurance funds, pension funds and deposit administration funds were the independent variables in the model. This study employed the Fully Modified Least Squares (FMOLS) Model to analyze data.The findings elicited from this study revealed that life insurance funds and pension funds recorded significant positive effect on human development index, while deposit administration funds had a significant negative effect on human development index in Nigeria. From the inferential result, the researcher concluded that insurance funds have significant effect on human development index in Nigeria. From the foregoing, the researcher recommended that the National Insurance Commission, in conjunction with the government should efficiently work together to ensure that the premium collected, and the income generated by the industry through pension funds and life insurance are diversified into economic and productive investment, in order to boost human development in Nigeria.