ABSTRACT

The research looks at the influence of insurance companies in the development of the Nigerian economy during a 37-year period (1985 to 2021). Four related variables were regressed against real GDP: insurance premium (INPR), insurance investment rate (INIVR), insurance assets (INASS), and insurance penetration (INPEN) (RGDP). Using the ordinary least square approach, the empirical outcomes show that, although insurance premium has a large positive influence on economic development, insurance penetration has a considerable detrimental effect on Nigerian economic growth. However, throughout the research period, the insurance investment rate and insurance assets had no substantial influence on economic development in Nigeria. The report suggests, among other things, that insurance businesses in Nigeria adopt proper premium rates, which would not only attract more customers but will also increase total revenue for the firms, so contributing suggestively to the progress of the Nigerian economy. Furthermore, the mild negative consequence of insurance investment rate on economic development points to the urgent necessity for the insurance industry to focus on real estate business; they must pursue it energetically because of the potentials and vast rewards accruable in the area.