Chidiebere Best KALU

The study investigates the effect of risk management and investment rate risk on the performance of insurance industry in Nigeria for the period 1991 to 2021. The cointegration analysis and the fully modified ordinary least squared (FMOLS) econometric analysis was employed. The findings from the analysis showed that insurance premium risk (PREMR) and claims settlement risk (CLAIMSR) have insignificant positive relationship with the performance of the Nigerian insurance industry; Insurance penetration risk (PER) and inflation rate risk have significant positive impact on insurance industry performance; while investment rate risk (INVR) has significant negative impact on performance. The study recommends that management and relevant policy makers should formulate the right policy that will deliberately encourage the rate of investment among investors in the industry and by so doing, it will help to minimize the associated negative risks. In addition, the government and relevant regulatory authorities of insurance firms in Nigeria should evolve a multifaceted approach to risk management in order to derive greater benefits from their risk management.