The Demand for Home and Property Insurance in Nigeria

The demand for insurance, notably home and property insurance in Nigeria, is unresearched and ignored, coupled with the low level of patronage and penetration rate amidst the numerous insurance scheme to boost the performance of the insurance industry. This study, therefore, contributes to the literature serving as a helpful guide to the insurance industry in Nigeria. The study examines Nigeria's home and property insurance determinants, focusing on Lagos Metropolis. The study adopts the positivist paradigm, a quantitative technique based on the primary data sampled from 500 legal tenants and landlords. The study employed the Logit regression and Maximum likelihood estimation technique for the investigation. Empirical results from the Maximum likelihood technique indicate that risk attitude and aversion and low education and literacy levels are positive and significant determinants of home and property insurance demand. In contrast, the non-performance of the insurance companies in managing primary risks shows a negative and significant impact on insurance demand purchase. Interestingly culture, religion, the quality of the service of the insurance operators, and other economic factors were not significant determinants of home and property insurance demand. The study's findings suggest that insurers must consider the different risk attitudes in the design of insurance packages and embrace accountability and transparency in fulfilling their obligations to reduce the expectation of non-performance and basis risk