Interest rate is an important economic factor that can determine the level of investment in any economy, hence, the need for any organization or economy that wishes to grow to pay attention to it dynamism. This study was conducted to examine the effect of interest rate on the growth of insurance industry in Nigeria. Total insurance investment, and gross premium income which represents the insurance industry growth constitute the dependent variables while interest rate was the independent variable. The researcher employed a pooled ordinary least square (OLS) regression using secondary data drawn from audited annual financial statements of insurance industry in Nigeria from 2003-2023, a period of twenty-one years. The results show that interest rate (INTR) has significant effect on Total Insurance Investment (TII), while it has no significant effect on Gross Premium Income (GPI). It was concluded that there is a statistically significant of interest rate on total insurance investment, indicating that interest rate is very important in determining the growth of insurance companies in Nigeria. The second hypothesis shows insignificant effect of interest rate on the gross premium income of insurance, this could be attributed to low patronage of the insurance business, or by factors that enhanced premium collection such as compulsory insurances, among others. Therefore, it was recommended that premium income generated should be put into viable investment as it is not significantly influence by interest rate, this will help in increasing total insurance investment. Also, the government through the insurance regulatory authority should implement the compulsory insurance mechanism, to enables more patronage, while also mandating the insurance companies to follow the doctrine of interest rate set by the Central Bank of Nigeria (CBN) when pricing their products so as to avoid unfair, deceptive and abusive practices of overpriced policies which consequently affect the industry growth.