IMPACT OF INSURANCE FUNDS IN NIGERIA CAPITAL MARKET

This study has developed a prudent chi-square model for the purpose of explaining and analyzing empirically, the impact of capital market on the growth of insurance sector in Nigeria. Using chi-square analyses to model development, the study estimates the relationship between four explanatory variables; market capitalization, total new issues, volume of transaction and listed equities and one explained variable. The study hypothesized a significant impact between the four explanatory variables and the findings of the research are based on the time series data collected from the NSE, SEC and CBN. The result of the study reveals that the four predictor variables market capitalizations, total new issues, volume of transaction have an aggregate significant impact at I per cent level of significance and listed equities is at 5 per cent level of significance on the GDP. The foregoing provided the justification for the rejection of the entire null hypothesis of the study. The study also reveals that market capitalization, has the highest impact on the insurance sector followed by total new issues and then the volume of transaction and finally listed equities.