CHALLENGES AND PANACEA TO THE GENERAL INSURANCE PENETRATION IN THE 21ST CENTURY: A STUDY OF LAGOS STATE

Abstract

In Nigeria, very few individuals buy legitimate insurance plans. Many Nigerian drivers do not have valid insurance, thereby constituting a valid threat to the lives and property of other road users. Small business owners in Nigeria are unaware of the significance of real insurance coverage in spite of the myriad of risks lurking in the business environment such as the frequent fire catastrophes in a number of our markets and constant motor accident on the Nigeria road. The study looks at the difficulties in selling real insurance and suggests policies that might boost general insurance sales in Nigeria.  A sample of n = 97. This study found that most prominent among the difficulties in selling genuine insurance in Nigeria are insurance companies' tardy payment of legitimate claims, the sheer number of clauses in insurance policies, absurd rate cuttings, limited access to insurance companies by rural residents, and poor understanding of the significance of buying legitimate insurance among potential insureds. According to the findings of this study, insurance companies should use grassroots marketing to educate Nigerians about the value of buying legitimate insurance plans. Products for microinsurance should be developed, Nigeria government should encourage it citizens to take up insurance policies while performing financial transactions, enrollment in schools, and the purchase of legitimate insurance by Nigerian motorists.