Risk Attitude and Demand for Motor Insurance: An Examination of Selected Motorists in Lagos State, Nigeria

Aims: This research aimed at drawing the attention of motorists and insurance practitioners in Nigeria to risk occurrences, drivers’ risk attitude, and demand for motor insurance. For this reason, the researchers have evaluated the significant influence of drivers’ risk attitude on risk occurrence and thus, examined the significant relationship between motorists’ risk attitude and motor insurance demandStudy design: The study employed cross-sectional survey designPlace and duration of study: Study was carried out in Lagos Metropolis. Duration of study was from December, 2012 to February, 2014.Methodology: The research commenced with gathering of literature survey. The study employed stratified random sampling technique and also, gathered data through the use of structured questionnaire. The sample population consisted of 270 respondents made up of motorists of private, commercial and company-used drawn from Six Local Government Council Areas of Lagos State. The statistical instruments employed for this study were Kolmogorov-smirnov test and Multiple regression.Results: Two hypotheses were tested in this study. For hypothesis 1, the use of Kolmogorov-smirnov test evidenced that driver’s attitude has significant influence on risk occurrence. For hypothesis 2, the Multiple regression presented that risk attitude of motorists has significant but negative relationship with the demand for motor insurance.Conclusion: The research evidenced a significant interrelationship between the understudied constructs .i.e. drivers’ risk attitude, risk occurrence and motor insurance demand Keywords: Drivers’ risk attitude, motorist income level, insurance pricing, risk occurrence, Government regulation, Lagos State, Nigeri

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

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. Keywords: Microinsurance products, awareness, accessibility, service providers, Lagos, Nigeri