FINANCIAL DEVELOPMENT AND INSURANCE SECTOR PENETRATION IN NIGERIA

In this study, the effect of financial development on insurance penetration in Nigeria sector for the period 1995 – 2022 was investigated using ordinary least square (OLS) technique. Financial development indicators utilized in the study includes broad money supply and credit to private sector while insurance sector penetration rate was the dependent variable. We estimated a regression model and the result reveals that broad money supply has negative and insignificant impact on insurance penetration in Nigeria while credit to private sector was positively and significantly related to insurance penetration. The study recommends that regulatory authorities charged with the sole responsibility of ensuring the macroeconomic stability of Nigeria should ensure that more credit should be extended to the private sector in other to further deepen insurance penetration rate in Nigeria. Also, the negative and insignificant effect of broad money supply on insurance penetration in Nigeria calls for the strict reevaluation of the present monetary policy tools as regard the volume of money in circulation to ensure that it contribute significantly to insurance penetration rate in Nigeria.