Nigerian opinion polling and research organisation, NOI Polls Limited, says the lack of awareness and public enlightenment on the benefits of insurance are the major factors hindering the growth of the sector in the country.
NOI’s recent survey titled "Poor Enlightenment Hinders Insurance Penetration among the General Public," reveals that 9 in 10 Nigerians (86 percent) do not have any form of insurance cover while vehicle/car insurance (63 percent) is the most commonly purchased insurance cover compared to a much smaller 20 per cent of the population that had life assurance.
Of the 86 percent who do not have any form of insurance cover, nine percent of them do not trust insurance service providers, the research firm said.
The research which sought to review the insurance culture in Nigeria also identified cultural and religious factors as essential factors leading to the slow growth of the insurance sector.
Previous studies have shown that low awareness and lack of knowledge about insurance products characterised people’s opinions about the insurance sector.
The recent poll however indicated that despite the poor insurance culture, there are huge potentials for insurance companies and practitioners, particularly in the area of designing new products that will be attractive to youths across the country.
The firm however said that "It is imperative to note that only nine percent stated that they do not trust insurance companies, compared to some decades ago when insurance practitioners were considered fraudulent for use of hidden clauses and non-payment of claims."
Insurance companies (42 percent) and agents (41 percent) were identified as the key channels of insurance purchase.
Source: Ventures Africa
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