Insurance Premium and Investment On Indemnity in The Uganda Insurance Industry-A Case Study of National Insurance Corporation in Kampala District

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The research was purposed to investigate the relationship between insurance premiums and investment in NIC-Uganda (2007-2016),Its objectives were; to establish the trend of Investment in NIC- Uganda (2007-2016), to establish the trend of Premium in NIC- Uganda (2007-2016), to investigate the relationship between insurance premiums and investment in NIC-Uganda (2007-2016) The hypothesis of the study was; there is no significant relationship between insurance premium and investment in NIC-Uganda, Time series analysis such as Correlation analysis, regression analysis mechanisms were used. The trend of investment and premiums had shown a general increase with percentage change of 63.6 and 63.7 percent respectively. Using the correlation, regression approach, there was a strong positive correlation between the relationship between insurance premiums and investment in NIC-Holdings Limited (r=0.9709), there was also significant relationship between investigative relationship between insurance premiums and investment in NIC-Uganda at 0.05 level of significance. In conclusion therefore both insurance premiums and investment has a general increase, there is a positive relationship between insurance premiums and investment in NIC-Uganda which agreed with Boose (1993), Smith (1989) study on insurance premiums and investment and found a significant relationship this implies that the investment plays a very important role in the premiums of the insurance companies of Uganda.

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