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Insurance & Actuarial Science

Evaluation Of Factors That Affect The Demand For Insurance Products In Nigeria: A Case For Life Insurance Products

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ABSTRACT

This research work tends to focus on the Socio-cultural study of Osu-caste system in Mbieri Mbaitoli Local Government Area of Imo State. The study has four research questions which includes giving an expository view-point of Osu caste system as a method of social stratification in Mbieri town, highlights the history of Mbieri and within that context, to unravel the Osu caste system among the people of Mbieri. The study also aims at demonstrating how the Osu caste system operates among the people of Mbieri. It discusses the various ways the practice has impacted on the town and people of Mbieri. The finding of this study has it that the Osu caste system is a socio-cultural phenomenon that has had a profound impact on the lives of those affected by it. Igbo-Africans are multi-cultural and multi-religious group of people, having their peculiar methods of carrying out and performing all their activities. If Christians felt contempt for the Igbo funeral rites, if Christians neglect the traditional Igbo titles, if Christians make marriage a private affair, the problem of Osu Caste System will not only persist but the Osu will soon loose confident on the Christians. Based on the findings, the study recommends that, the Osu caste system is a socio-cultural phenomenon that has had a profound impact on the lives of those affected by it. Igbo-Africans are multi-cultural and multi-religious group of people, having their peculiar methods of carrying out and performing all their activities. Their interpretation and understanding of issues vary according to their culture and religion. Their funeral rites, traditional titles, marriage rites, even in their agricultural activities, all these vary both in time, season and method. Unless there are common and general accepted ideas or policy by both Christians and non-Christians, the problem of Osu will continue to persist. If Christians felt contempt for the Igbo funeral rites, if Christians neglect the traditional Igbo titles, if Christians make marriage a private affair, the problem of Osu Caste System will not only persist but the Osu will soon loose confident on the Christians. Then the Osu problem instead of being eradicated will continue getting worse dimensions.

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CHAPTER ONE

INTRODUCTION

This chapter is the overview of this study. It is presented under the following subheading: background to the study, statement of the problem, scope of the study, purpose of the study, significance of the study and research question.

1.1     Background of Study

Insurance products are crucial for managing risks associated with financial loss arising from unforeseen events. The insurance industry plays an important role in mitigating risks and providing financial security to individuals and organizations. In Nigeria, the insurance industry has experienced significant growth in recent years, with the life insurance sector recording a surge in demand (Adegbaju & Ogunjobi, 2018). However, the factors that affect the demand for insurance products in Nigeria are complex and multifaceted.

One significant factor that influences the demand for life insurance products is the economic conditions in Nigeria. The country’s economic environment is characterized by high inflation rates, currency devaluation, and low GDP per capita, which has a direct impact on the disposable income of individuals and their ability to purchase insurance products (Ezeigwe et al., 2019). Additionally, the cultural beliefs of Nigerians towards insurance products can also affect demand. The traditional belief that insurance is unnecessary and that one should rely on fate can limit the uptake of insurance products (Osuji & Eneh, 2017).

Nigeria’s insurance industry ranked fifth highest in Africa in terms of penetration after South Africa, Namibia, Kenya and Mauritius. The insurance industry in Nigeria consists of a number of players namely; 51 insurance companies (including foreign reinsurance companies’ operating liaison offices in Nigeria) and 4 reinsurance companies, 460 registered insurance brokers and about 15,000 insurance agents (NIA digest, 2019). The ratio of the total annual gross insurance premium underwritten in a given year to the Gross Domestic Product (GDP), measures the insurance penetration for Africa as 3% (A.I.O, 2019). This is relatively higher than the average emerging markets average of 2.65%, but much lower than the advanced market of 8.07% and a global average of 6.13% (Pricewaterhouse, 2019). The uptake of insurance products in Nigeria is impacted by several factors. These include awareness, access, cost and complexity of the products. Additionally, buyer behaviour is influenced by socialisation, economic status, social status, age, gender, educational level and religion. When investigating the uptake of insurance products in the  market in Nigeria, it iscritical to reflect on the  factors affecting the  buying behaviour of certain age group towards insurance services.

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Furthermore, the level of awareness about insurance products among Nigerians is also a crucial factor. A significant percentage of the population is unaware of the benefits of insurance products and the role they play in managing financial risks (Adebayo et al., 2018). Lack of awareness can lead to a lack of trust in insurance providers, limiting the demand for insurance products.

1.2     Statement of problem

Despite the potential benefits of life insurance products in providing financial protection for individuals and their families, the demand for these products in Nigeria remains relatively low compared to other countries. This poses a significant challenge for insurance companies that offer life insurance products, as well as for policymakers who are interested in promoting financial inclusion and stability. Therefore, the problem that this study aims to address is the low demand for life insurance products in Nigeria and the factors that contribute to this phenomenon. Specifically, the study will evaluate the factors that affect the demand for life insurance products in Nigeria and examine how these factors can be addressed to increase uptake of life insurance products.

1.3     Purpose of the study

The aim of this study is to evaluate the factors that affect the demand for life insurance products in Nigeria.

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Objectives:

  1. To identify the factors that influences the demand for life insurance products in Nigeria to analyze the relationship between the identified factors and the demand for life insurance products in Nigeria.
  2. To assess the level of awareness and understanding of life insurance products among Nigerians.
  • To determine the impact of cultural and societal factors on the demand for life insurance products in Nigeria.
  1. To provide recommendations for improving the demand for life insurance products in Nigeria.

1.4     Research Questions

  1. What are the factors that influence the demand for life insurance products in Nigeria?
  2. What is the relationship between the identified factors and the demand for life insurance products in Nigeria?
  • How aware and understanding are Nigerians about life insurance products?
  1. What is the impact of cultural and societal factors on the demand for life insurance products in Nigeria?

1.5     Scope of Study

This study will focus on the evaluation of the factors that affect the demand for life insurance products in Nigeria. The study will be limited to life insurance products and will cover major cities across the six geopolitical zones in Nigeria.

1.6     Significance of Study

This study is significant in the following ways:

  1. It will provide insight into the factors that influence the demand for life insurance products in Nigeria, which can be useful for insurance companies and policymakers.
  2. The findings of this study can help insurance companies to design appropriate products that meet the needs and expectations of Nigerians.
  • This study will contribute to the body of knowledge on the factors that influence the demand for life insurance products in Nigeria.
  1. The study can serve as a reference point for further research on the demand for insurance products in Nigeria.

    Pages:  68

    Category: Project

    Format:  Word & PDF               

    Chapters: 1-5                                          

    Source: Imsuinfo                            

    Material contains Table of Content, Abstract and References.

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