Determinants of Insurance Adoption: Regional Disparities in Nigeria (African Journal Of Applied Research)

Summary

• A cross-sectional survey of 615 adults across Nigeria's six geopolitical zones evaluated the determinants of insurance inclusion.p.1
• Insurance penetration in Nigeria remains below 1% of GDP, with as few as 1.5% of adults covered by an insurance policy.p.2
• Among the study respondents, 61% possessed tertiary education, 68% owned smartphones, and 47% earned at least ₦100,000 monthly.p.7
• Digital readiness was identified as the strongest predictor of insurance adoption with an Odds Ratio of 2.51 (p < 0.001).p.1
• Policy renewal was most strongly driven by trust in insurance providers, showing an Odds Ratio of 3.06 (p < 0.001).p.1
• The Composite Insurance Inclusion Index ranged from a high score of 4.2 in the South-West to a low of 2.1 in the North-East.p.12

Key insights

1. Significant regional differences in insurance inclusion emerged across Nigeria's six geopolitical zones (χ² = 52.3, p < 0.01).p.1
2. Global insurance penetration hovers around 6–7% of GDP, whereas Nigeria's insurance penetration is estimated below 1% of GDP.p.2
3. South-West leads regional participation with an adoption rate of 63% and a policy renewal rate of 57%.p.8
4. Smartphone ownership demonstrates a high positive correlation with digital insurance engagement (r = 0.75).p.10