Analysis of Insurance Products and Services Effectiveness in Rural Areas (Case Study of Lagos State, Nigeria)

Abstract

Providing insurance services in rural areas is beneficial to improve insurance penetration. This paper analysed the effectiveness of insurance products and services in rural Lagos State, Nigeria. It assessed the ability of the Nigerian insurance sector in providing insurance services to rural areas, and identifying how geographic conditions and lack of infrastructure amenities affect the location of insurance companies. The data used for the study was collected through interviews. The findings show that rural dwellers' lack of knowledge about the insurance and insurance industry prevents them from engaging in the industry. The findings also show that while non-settlement of insurance claims discouraged rural dwellers from purchasing insurance products and services, there is no affordability of insurance products and services mainly for rural dwellers in Nigeria. The results suggest that the government and the insurance sector should develop insurance products and services to meet the needs of rural dwellers to ensure insurance growth and deepened insurance penetration in Nigeria.