ABSTRACT: This study investigated the efficacy of insurance reforms on the performance of insurance industry in Nigeria. Prior to the reforms in insurance sector, insurance contribution to Gross Domestic Product (GDP), Gross Premium and Underwriting Profit Margin were poor and inadequate. The objective of this study was to find out the potency of insurance reforms on the growth rate of Gross Domestic Product (GDP) in Nigeria and to assess the Underwriting Profit Margin and Gross Premium of selected insurance firms in Nigeria. The study adopted a descriptive approach and data were collected from secondary sources. Simple regression model was used in testing the hypothesis. The result of the hypothesis revealed that insurance reforms have increased Gross Domestic Product (GDP) in Nigeria and also that the Underwriting Profit Margin and Gross Premium of Insurance firms have improved after the reforms. Above, all it was established that there is a significant relationship between insurance reform and the Underwriting Profit Margin of insurance firms in Nigeria. Findings of the study revealed that the reforms have increased insurance penetration, improved products distribution and increased the capital base of insurance firms in Nigeria. The study recommend that there should be an effective enforcement mechanism put in place to check compliance and activation of legal reforms and regulatory framework as these would benefit the players and other stakeholders in the insurance industry.