Factors affecting insurance consumption in Akwa Ibom state, Nigeria

Abstract

Ebitu Ezekiel Tom, Ibok Nkanikpo Ibok ,Mbum Patrick Awo

This study examined factors within insurance institutional framework that affect insurance consumption in Akwa Ibom State in Nigeria. Primary data were collected from 80 insurance consumers judgmentally drawn from 10 insurance companies located in the state. Data were collected on: accessibility and prompt payment of claims, knowledge of the use and importance of insurance, professional activities by those selling insurance, nature of insurance policy statement and the overall corporate image. The data were analysed using both descriptive and inferential statistics. The socio-economic characteristics of insurance consumers revealed that most of them were literate, mostly public servants, married and were still in their active ages. In accordance with our theoretical framework, our empirical results support the established relationship between insurance consumption and institutional performance. Realising these problems as they affect insurance patronage and development in the state, the study recommends a general overhauling of insurance institution framework as a way forward for the development of a vibrant insurance market in Akwa Ibom State.

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