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ABSTRACT
The study empirically examined the relationship between insurancerisk and the performance of insurance companies in Nigeria for a period of 34 years (1986 to 2019). The study employed correlation coefficient and the ordinary least squared (OLS) method for the empirical analysis of data. The results from the analysis showed that while insurance penetration risk has significant negative relationship with insurance performance, insurance density risk is seen to have significant positive relationship with insurance industry performance. On the other hands, total insurance investment rate risk does not play significant role in the determination of insurance industry performance in Nigeria. The study therefore recommends among others that, since investment rate risk has an insignificant negative impact on insurance companies’ performance, it suggests a wake-up call to management to ensure efficient application of the company’s assets and total premium collected for better profitable and asset yielding investment. This will go a long way to ensure that investment risk have the much needed positive impact on insurance companies’ performance in Nigeria. Also, management should leverage information technology in risk management by installing information systems that can carry out risk assessment and measurement more accurately and for monitoring risk management programs for effectiveness and overall performance of insurance firms in Nigeria.
