ABSTRACT

This work discusses the Nigerian capital market and the development of the insurance sector in Nigeria, using time series data on the variables understudy from 1986 to 2020. The Ordinary least square regression method was used to analyze the data. The results from this analysis revealed that the All Share Index(ASI), stock market capitalization and stock market liquidity has a positive and significant relationship with the development of the insurance sector while volume trade is negative but significant relationship with the development of the insurance sector within the period of the investigation.

This study recommends among others that, the regulatory authorities take critical regulatory and supervisory steps to institute strong measures against sharp, unwholesome and window-dressing trading activities. Also, measures to enhance stock price/asset valuation should be institutionalized and implemented through greater international competition and stock market liberalization. Finally, market capitalization stimulating policies and strategies should be adopted to enhance the development of the insurance sector.