Insurance Sector: A Prerequisite to a Sustainable Economic Growth and Development in Nigeria

The main objective of the study is to examine the effect of Insurance sector on the economic growth and development in Nigeria. The specific objective was to determine the effect of insurance premium, insurance investment and insurance assets on the real gross domestic product and human development index. Ex-post facto research design was utilized in the study. This study sourced secondary data from the Central Bank of Nigeria (CBN) statistical bulletin and United Nations Development Programme, spanning a time frame of 11 years, covering the period of 2012 to 2022. The study’s data were analyzed using the Co integrating regression method . The test of hypotheses conducted with the regression estimates from Co integrating regression showed the following results: Insurance premium has a negative and insignificant effect on the real gross domestic product (p-value = 0.6489); Insurance investment has a negative and insignificant effect on the real gross domestic product (p-value = 0.8909); Insurance assets has a positive and insignificant effect on the real gross domestic product (p-value = 0.0931). Insurance premium has a negative and insignificant effect on HDI (p-value = 0.6622); Insurance investment has a negative and insignificant effect on human development index (p-value = 0.9780); Insurance assets has a positive and significant effect on human development index (p-value = 0.0093).The study recommends that authorities in the insurance sector should review their reform policies and adopt strategies to enhance premium mobilization functions in Nigeria. Additionally, the insurance industry appears to have potential within the Nigerian economy, suggesting that insurance companies should focus their investments on more productive sectors.