In Nigeria, most companies don’t derive insurance. Though insurance firms had been round since 1918, very few companies use them.
A look by Intelpoint discovered that about 96.4% of companies could perchance perchance peaceful no longer derive any insurance in any appreciate. Let’s stumble on at 5 major causes why insurance isn’t widespread amongst Nigerian trade owners.
1. Lack of Awareness
Hundreds of trade owners don’t perceive insurance well. They don’t know inaugurate getting insurance or why it’s critical. Even supposing insurance firms try and educate folk about insurance, their efforts haven’t been very a hit. Many trade owners peaceful don’t respect the want for insurance or know the strategy it may perchance support them.
2. High Cost of Premiums
Insurance protection costs fairly various money, and heaps microscopic companies in Nigeria can’t give you the money for it. Most microscopic companies create much less money than the bottom insurance model they’d must pay. This makes it arduous for them to even judge about shopping insurance.
3. Shortage of Sales Agents
There aren’t sufficient folk working to promote insurance. Many who inaugurate promoting insurance stop inside of two years on fable of they don’t create sufficient money, the job is tricky, and to permit them to’t meet their gross sales targets. This implies there are fewer folk readily accessible to display insurance to capability customers, which makes it more difficult for companies to construct up out about and aquire insurance.
4. Cultural and Spiritual Beliefs
Some folk in Nigeria mediate that their faith will defend them from deplorable things happening, in snarl that they judge they don’t want insurance. These beliefs create them much less drawn to shopping insurance on fable of they don’t respect it as one thing well-known.
5. Mistrust of the Insurance protection Industry
Many Nigerians don’t belief insurance firms. They judge insurance doesn’t give them any accurate advantages and that it’s too advanced. They’re afraid they won’t salvage the support they want after they want it, even within the event that they pay for insurance.
