Abstract:
In the world of business, the availability and provision of adequate cover and protection for insurable risks cannot be wished away, as such, insurance remains the risk transfer mechanism of choice which boost, build, and sustain investor's confidence in any economy. This is because in pursuit of their core business objectives, businesses are confronted with a number of risks which have far reaching implications on their profitability, market share, growth, survival, and sustainability. The paper adopted a descriptive survey research design to investigate the catalytic effect of the insurance market on business performance in Nigeria. A review of extant literature was conducted for secondary data while simple random sampling technique was used to select a sample size of 385 respondents and the research hypotheses were tested with Logit Binary Regression statistical test. The findings revealed that a relationship existed between business performance and insurance market activities. It was thus concluded, that a functional insurance market was key to improved business performance as could be seen in the increased economic activities in Nigeria. Subsequently, the study recommended that the government should encourage the growth of the insurance sector through regulations which are aimed at increasing insurance market penetration in the country.
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