young man becomes a wizard and figths an evil wizard, he end ups in an asylum

Hi i really need help to find the name of the movie
it should be an 80’s low budget thriller movie since i saw it on the late 90’s, here’s what i remember:
-at the beginning of the movie the protagonist visits an asylum and meets a man that claims that insects tell him secret stories (he doesnt buy it, but looks intrigued), he also meets a woman
-he soon start fighting a secret organization which leader has magic powers and wants to kill him
-the girl helps him and tells him that he is kind of the chosen one and his magic powers would be stronger than anyone’s
– he fights the leader and when the leader magically crates an pistol he magically put the pistol on his hand to defeat him
– in the end of the movie both the protagonist and the woman are patients in the asylum and he pick ups an insect and claims that it’s telling him an history
it was a really weird movie but i watched it as a kid and ill really like to watch it again so please, ill appreciate your help.

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