IJBFMR 6 (2018) 22-33 ISSN 2053-1842 Effect of insurance industry performance on economic growth in Nigeria Baba Yaro Iyodo 1 , Sunday Eneojo Samuel 2 * and Sunday Joseph Inyada 3 1 Department of Banking and Finance, Faculty of Management Sciences, University of Jos, Nigeria. 2 Dundee Business School, Abertay University, United Kingdom, DD1 1HG. 3 Department of Accounting, Faculty of Management Sciences, Kogi State University, Anyigba, Kogi State, Nigeria. Article History ABSTRACT Received 17 October, 2018 Received in revisedform 19 November, 2018 Accepted 27 November, 2018 Keywords: Insurance, Economic growth, Insurance performance, Regression analysis. Article Type: Full LengthResearch Article This study explored the effect of insurance industry performance on economic growth in Nigeria. Insurance is a cover from financial loss. The study sought out to examine the impact of non-life insurance penetration on the economic growth of Nigeria. The ex-post facto study design was adopted for this study. Time series data for the period 1988-2014 were collated from the Central Bank of Nigeria (CBN) Statistical bulletin. Data were analysed using regression. The ARDL bound test was adopted in the testing of hypotheses formulated for the study. The findings of the study revealed that non-life insurance penetration had a positive and substantial effect on the economic growth in Nigeria during the period. The study recommends among others that life insurance companies come up with life products mainly designed for the low-paid earners as the target which will enhance penetration and deepen the market, more awareness is created to improve the participation of product industry and firms as this will intensify the activities of the insurance industry in Nigeria. Furthermore, it is recommended that an increased diversification of insurance products mostly in non-life businesses be embanked upon. For insurance industry in Nigeria to exert a significant and positive influence on the Nigeria economy, government insurance policies covering compulsory insurance for all Nigerian, mainly non- life and, health insurance cover should be strictly enforced and implemented. ©2018 BluePen Journals Ltd. All rights reserved INTRODUCTION The increasing stake of the insurance industry in the cumulative global financial sector in developed and developing countries have shifted concentration to the insurance-growth relationship. Studies revealed that the development in the insurance activities witnessed between 2000 and 2008 (175%) globally indicates a tremendous increase in the sector which significantly overtake global economic growth (Outreville, 2011; 2013). For instance, the global insurance premium volume for the year 2009 was US $4.06 trillion; this is equivalent to 7% of the world GDP. Between 2010 and *Corresponding author. E-mail: aglowsam@gmail.com. 2011, the insurance premium rosed from $4.3trillion to $4.57 trillion (that is, 6% increase). Subsequently, it rose from $4.57 trillion to $4.61 trillion and $4.64 trillion in 2012 and 2013 respectively (IIF, 2010; Swiss Reinsurance Company, 2015). These advances have redirected the focus of research scholars towards an investigating into the connection between insurance and economic growth. Undoubtedly, numerous studies revealed that the advancement of the insurance industry is linked to the economic growth of a country (Arena, 2008; Curak et al., 2009; Ward and Zurbruegg, 2000; Avram et al., 2010; Din et al., 2017a). In Africa, studies like Mojekwu et al. (2011), Akinlo (2013), Onyekachiand Okoye (2013), Cristea et al. (2014) and Alhassan and Fiador (2014) have equally examined