This study investigated the causality of the relationship between life insurance business and economic growth of Nigeria for the period 2000-2011. Pearson's Product Movement Correlation Coefficient was used to test the hypothesis to determine the extent of the causality of the relationship between life insurance business and economic growth. The researcher graphically measured the ratio of life insurance premium to Gross Domestic Product (GDP). The study revealed that there was significant causal relationship between life insurance business and economic growth of Nigeria. It was also discovered that despite the high degree of the causality of the relationship between life insurance premium and GDP, that life insurance premium has not been able to make a meaningful contribution to economic growth of the country. The study concluded that life insurance business has not effectively contributed to the growth of Nigeria economy due to low consumption, and that individual and corporate organizations have failed to embrace life insurance policies in Nigeria. The researcher therefore, recommended that National insurance commission (NAICOM) should enforce the compulsory group life insurance policy, and ensure that there is high level of transparency initiative and efficiency in Nigeria insurance industry. This would go a long way in mitigating the factors that hinder individuals and organizations in embracing life insurance policies in Nigeria.

This study examined the significance relationship that exists between insurance investment and the Nigeria capital market, and the significance relationship that exists between total insurance business and economic growth of Nigeria for the period 2000-2011. The Pearson's Product Movement Correlation Coefficient was used to test the hypotheses to determine the extent of correlation, while the t-test was used to find out the significance of the relationship that exists between the variables. The study discovered that there was a significant relationship between Nigeria Insurance market investment and capital market, and there was also a significant relationship between Insurance business and economic growth. The study concluded that Insurance business is a business that have allowed different risk to be managed more efficiently, boosting financial stability, mobilization of domestic saving and accumulation of new capital that enhance the performance of the Nigeria Capital market and Economic Growth. The researchers therefore recommended that National insurance commission (NAICOM) should make policy that will enhance effective growth and development of insurance business in Nigeria and ensures that cooperate organizations and individual embraces the compulsory insurance business in Nigeria.