ABSTRACT

For a period of 27 years, the research empirically explores the link between insurance industry expansion and economic growth in Nigeria (1995 to 2021). The unit root test was performed using the Augmented Decay Fuller test to determine the stationarity state of the variables utilized in the research. The data was analyzed using the ordinary least squares (OLS) econometric approach. The empirical study findings show that insurance premium (IP) and claim settlement are important determinants in determining economic development in Nigeria throughout time. Other factors, such as insurance investment rate (INVR) and insurance penetration (TP), were shown to have a negligible negative connection with Nigerian economic development. According to the research, managers of Nigerian insurance businesses should efficiently manage their firms' claims procedures in order to lower the quantity of claims for every earned premium and improve the country's total economic activity. Furthermore, the government and regulatory authorities should develop suitable policies to oversee insurance businesses' investment patterns and ensure that the proper productive and asset-bearing investments are undertaken. This will help to develop the industry and will have a good influence on the country's growth and development.