This study examined the effect of macroeconomic variables on the growth of insurance industry in Nigeria, for the period, 1981 – 2018. Specifically the study examined the effect of exchange rate on total insurance premium; the effect of inflation rate on total insurance premium; the effect of poverty rate on total insurance premium as well as the effect of gross domestic product on total insurance premium. Unit roots of stationary and descriptive statistics of normality were used to treat the variables of interest. Autoregressive Distributive Regression Lag was used to analyze the hypotheses in the study. Result reveals that: Poverty rate and exchange rate have negative and non significant impact on Insurance premium in Nigeria; Inflation rate has negative and significant impact on Insurance premium in Nigeria; while economic growths have positive and non significant impact on Insurance premium in Nigeria. It was concluded that macroeconomic variables play a serious negative implication on the level of insurance premium in Nigeria. The study recommends that efforts should be made by the government to increase employment and reduce poverty by encouraging small and medium sector and real sector development so as to embrace insurance products. Management of exchange rate and increase in export as well as our foreign reserve will help to stabilize our currency so that insurance business will flourish. Government should embark on ban on the importation of foreign goods to encourage our indigenous companies and stabilize inflation. Economic growths affected every sphere of the real sector activities such as production, distribution and reserve. Therefore real sector and financial sector activities should be reviewed so that economic growth will improve. This improvement is associated with an increase in insurance business activities and insurance premium improvement.