ABSTRACT

Thisstudyreviewedthe impact of insurance sector development on stock market performance in Kenya, over  the  period  of  1985 to 2022.  The study’s objectiveisassess the impact of Insurance Penetration Ratio (IPR) on the performance of the stock market in Kenya, specifically focusing on its influence on market capitalization, to examine the relationship between Claims Ratio and stock market performance (market capitalization) in Kenya, to investigate the compact of Insurance Density on stock market performance (market capitalization) in Kenya and to ascertain the relationship between Technical Insurance Index and stock market performance (market capitalization) in Kenya. Theresearchstudy adopted the longitudinal research design to examine the relationship between the dependent and independent variables.Theanalysisofthe data revealed that there is a statistically significant impact of Insurance Penetration Ratio (IPR) on the performance of the stock market in Kenya, that there is no statistically significant relationship between Claims Ratio and stock market performance (market capitalization) in Kenya, that at 5%, 1% and 10% significance level, insurance density exerts a statistically significant influence on stock market performance (market capitalization) in Kenya, and that at 10% significance level, there is a statistically significant relationship between technical insurance index and stock market performance (market capitalization) in Kenya. Thestudy concluded that these insights underline the importance of strategic development within the insurance sector to bolster overall financial market stability and growth in Kenya.