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ABSTRACT
The study empirically examines the impact of financial development on insurance penetration in Nigeria using ordinary least square (OLS) technique. Financial development indicators utilized in the study includes broad money supply and credit to private sector from 1990 – 2022. With insurance sector penetration rate as the dependent variable, we estimate regression estimate of the model. The OLS result reveals that broad money supply has positive and significant impact on insurance penetration in Nigeria while credit to private sector was negatively and insignificantly related to insurance penetration. The study recommends that regulatory authorities charged with the sole responsibility of ensuring the macroeconomic stability of Nigeria should ensure that broad money supply should continue to be properly managed in other for it to continue to improve the insurance penetration rate in Nigeria. Also, the negative and insignificant effect of credit to private sector on insurance penetration in Nigeria calls for the strict supervision by the banks to ensure that the credit are used for productive activities in the economy
