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ABSTRACT
The study empirically investigates the relationship between insurance sector development and economic growth in Nigeria for a period of 28 years (1995 to 2022). The Augmented Decay Fuller test was used to carry out the unit root test in order to ascertain the stationarity state of the variables used in the study. The ordinary least square (OLS) econometric technique was used in the analysis of data. The results from the empirical analysis indicate that insurance premium (IP) and claim settlement are significant factors in the determination of economic growth in Nigeria overtime. The other variables such as insurance investment rate (INVR) and insurance penetration (TP) were observed to have insignificant negative relationship with economic growth in Nigeria. The study recommends that, management of the Nigerian insurance firms should effectively manage their firm’s claims processes, in order to reduce the amount of claims for every earned premium and enhance the overall economic activities in the country. Also, government and regulatory authority should formulate appropriate policy that will monitor insurance firms’ pattern of investment by ensuring that the right productive and assets bearing investments are embark upon. This will in no small measure develop the sector and impact positively on the growth and development of the country.
