Examining the Socio-Economic Factors Affecting the Choice of Insurance Products in Nigeria

Abstract

This study examined the socio-economic factors affecting the choice of insurance
products in Nigeria. Using the cross-sectional survey design and the convenience
sampling technique, a structured questionnaire was administered to 400 participants that
had contracted insurance policies in Lagos State, out of which 317 were deemed usable
for the study. An analysis was done using the t-test, and from the hypothesis tested, the
result revealed that family influence, religion, and income level influenced the choice of
insurance policy in Nigeria. Based on the findings, it is recommended that the federal
government should continue sensitizing the public on the need for insurance and enact
policies that will encourage low-income earners to participate in the purchase of
available insurance policies. Insurance companies on their own part should put in place
policies which allow for prompt payment of claims, making sure their policies are explicit
enough and they have employees with the right attitude.