ABSTRACT

The study empirically examines the impact of insurance and risk management in Nigeria insurance firms, using all listed insurance firms for the period 1987 to 2020. The Ordinary Least Square Regression method was used to analyze the data. The results from the empirical analysis revealed that risk management, total risk claims, exchange rate risk and inflation risk has significant negative relationship with insurance firm Performance in Nigeria. On the other hand, insurance premium had a positive and significant relationship with insurance firm in Nigeria while cash flow of insurance firm was positively and insignificantly related to insurance firm performance within the period of investigation. The study recommends that; sound risk management policies and practices are needed to enhance insurance firm performance in Nigeria; Robust institutional monitoring mechanism to properly monitor and manage risks are imperative to bolster insurance firm performance in Nigeria; strong and stable exchange rate management policies should be implemented to drastically minimize exchange rate fluctuation in Nigeria; increase premium-generating policies are necessary to enhance insurance firm performance in Nigeria; Proper and robust cash flow- enhancing policies should be adopted and implemented by management of insurance firms in order to stimulate performance in the insurance sector in Nigeria.