ABSTRACT

Insurance is one of the cornerstones of modern day financial services sector. In addition to its traditional role of managing risk, insurance market activity, both as intermediary and as provider of risk transfer and indemnification, may promote growth by allowing different risks to be managed more efficiently, promoting long term savings and encouraging the accumulation of capital. The main objectives of this work it to examine the impact of insurance market activities on financial sector development in the Nigeria economy. Secondary data were applied in carrying out this research work, ordinary least squares and unit test was used to analyse it. The results showed and unit root test was used to analyse it. The results showed a positive and significant impact. This is to say that the magnitude of the estimated co-efficient reveals that insurance market operation significantly contributes to the financial sector development in Nigeria.We recommend therefore that government through the monetary authourities should sustain the efforts geared towards deepening the financial sector as this will greatly improve the performances of the insurance market activities.