In Nigeria, most companies don’t have insurance coverage. Though insurance coverage corporations have been round since 1918, only a few companies use them.
A research by Intelpoint discovered that about 96.4% of companies haven’t any insurance coverage in any respect. Let’s take a look at 5 primary the explanation why insurance coverage isn’t common amongst Nigerian enterprise house owners.
1. Lack of Consciousness
Lots of enterprise house owners don’t perceive insurance coverage effectively. They don’t know how one can begin getting insurance coverage or why it’s vital. Though insurance coverage corporations attempt to educate folks about insurance coverage, their efforts haven’t been very profitable. Many enterprise house owners nonetheless don’t see the necessity for insurance coverage or know the way it might assist them.
2. Excessive Value of Premiums
Insurance coverage prices some huge cash, and lots of small companies in Nigeria can’t afford it. Most small companies make much less cash than the bottom insurance coverage value they must pay. This makes it exhausting for them to even take into consideration shopping for insurance coverage.
3. Shortage of Gross sales Brokers
There aren’t sufficient folks working to promote insurance coverage. Many who begin promoting insurance coverage stop inside two years as a result of they don’t make sufficient cash, the job is hard, they usually can’t meet their gross sales targets. This implies there are fewer folks obtainable to elucidate insurance coverage to potential prospects, which makes it tougher for companies to study and purchase insurance coverage.
4. Cultural and Spiritual Beliefs
Some folks in Nigeria imagine that their religion will defend them from dangerous issues occurring, in order that they suppose they don’t want insurance coverage. These beliefs make them much less excited about shopping for insurance coverage as a result of they don’t see it as one thing crucial.
5. Distrust of the Insurance coverage Trade
Many Nigerians don’t belief insurance coverage corporations. They suppose insurance coverage doesn’t give them any actual advantages and that it’s too difficult. They’re frightened they received’t get the assistance they want once they want it, even when they pay for insurance coverage.