An Exploratory Study of the Awareness and Accessibility of Microinsurance Products in Selected Insurance Companies in Lagos, Nigeria

Abstract

Microinsurance is crucial for a developmental stride in Nigeria's insurance industry. This research therefore presents an investigation of the awareness and accessibility of microinsurance products with selected insurance firms a research ground for its empiricality. Essentially, two hypotheses were tested. They are to determine whether: (i) aggressive awareness drive towards microinsurance products has not been genuinely encouraged among insurance companies in Nigeria; and (ii) the accessibility of microinsurance products created by insurance companies have not significantly reflected in the lives of many insuring populace. The survey research design for this study was exploratory in nature. The study sample consisted of sixty (60) respondents from whom data were gathered through the use of an interview technique. A Kolmogorov-Smirnov technique was used for data analysis. The findings from the study revealed that awareness creation towards microinsurance products has been genuinely encouraged among insurance companies, while the accessibility has not yet reflected significantly in the lives of many insuring populace. The study thus recommends that adequate awareness, education and enlightenment programmes be introduced especially for low income earners. Also, Government should promote "financial literacy" through educational programmes using the mass media;Greater attention should be given to reducing operating cost and enhancing efficiencies amongst microinsurance service providers; and investment and continuous improvement in technology is highly essential for effective relationship management between customers and the insurance firms.

Indicators of having a micro-family takaful plan amongst low-income earners

“…Incidentally, Azhar (2015) focussed on takāful as a whole rather than specific to micro-family takāful plans only. The previous studies also highlighted the importance of knowledge on the purchase decision regarding takāful products (Churchill, 2006; Arun and Steiner, 2008; Akotey et al , 2011; Ajemunigbohun and Iyun, 2014). The average of the variable of the tendency of having a micro-family takāful plan approaches the value of 3 (2.528), indicating uncertainty amongst the respondents as to whether to have a micro-family takāful protection.…”

Social capital and health micro-insurance uptake by the informal sector workers in Kenya

“…Duru (2012) opined that the whole insurance industry have to uphold trust, failure to which will impede the advancement of micro-insurance. HMI operators have to earn, retain and sustain customer's trust to remain in business (Ajemunigbohun et al, 2015). Lower levels of demand in developing countries may be as a result of weaker formal trust-building institutions that governs insurance transactions.…”

“…Therefore, the retention and sustainability of customer's confidence and trust to remain in business is integral to SC. Trust levels on the product on offer by insurers in Kenya was found to have significant influence on the uptake (Duru, 2012;Ajemunigbohun et al, 2015;Dercon et al, 2012). In all the regions except Nairobi, SC was found to influence uptake of HMI this was in agreement with the empirical literature which stated that when individuals, groups, or organizations establishes network that ties with other individuals, groups and organizations.…”

Does Government Intervention Moderate the Effects of Financial Literacy Into Buying Microinsurance Among the Marginalized? A Literature Review

“…The Government is strongly urged to make use of financial literacy via educational programs particularly the use of mass media since it was revealed in the study that the creation of awareness has significantly reflected in the lives of the insuring public (Ajemunigbohun et al, 2015). Moreover, because of the inability of both microinsurance and social protection to stand alone to be sustainable and more efficient in its desire to reach the excluded segment of the population, the Government must link microinsurance and other social protection components in the national social protection strategies in order to make a developmentally rational, consistent, well-organized and equitable system (Jacquier et al, 2006).…”