Microinsurance and Its Untapped Economic Development Potentials in Nigeria

Frank Bassey Ime; Acha Ikechukwu

doi:doi:10.11648/j.jbed.20170201.13

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Microinsurance and Its Untapped Economic Development Potentials in Nigeria

Frank Bassey Ime, Acha Ikechukwu

Published in Journal of Business and Economic Development (Volume 2, Issue 1)

Received: 30 October 2016 Accepted: 25 November 2016 Published: 3 January 2017

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Abstract

This study highlights the potential contributions of microinsurance business to the growth and development of the Nigerian economy. It noted the low levels of insurance coverage where only 1% of the adult population is insured and insurance penetration of 0.68%. The contribution of insurance to GDP is put at a paltry 0.72% and poverty is so high that about 70% of the population live on less than $1.00 a day. The paper therefore examines the fundamental issues that bedevil the Nigerian economy and the insurance industry and the impact of the issues on the country’s economy. The inadequacy of data and relative newness of the microinsurance arrangement encouraged documentary review in this study, with extensive employment of secondary sources of information. Using a descriptive research design and employing tables, graphs, charts and percentages to analyze the data, the study shows that development of microinsurance business in Nigeria has the potential to undo some of the country’s economic woes, and ensure more insurance penetration and financial inclusion. It shows there are developmental gaps in the operation of insurance business in Nigeria which microinsurance business arrangement can effectively fill. The study therefore recommends, amongst other things, extensive information dissemination about microinsurance products, development of tailored microinsurance products for the target market of poor and low income earners and the employment of appropriate channels, like mobile network operators, market and farming associations etc, as payment platforms to disseminate information and collect premiums.

Published in	Journal of Business and Economic Development (Volume 2, Issue 1)
DOI	10.11648/j.jbed.20170201.13
Page(s)	22-30
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Financial Inclusion, Insurance Penetration, Economic Growth, Nigerian Economy, Insurance

References

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APA Style

Frank Bassey Ime, Acha Ikechukwu. (2017). Microinsurance and Its Untapped Economic Development Potentials in Nigeria. Journal of Business and Economic Development, 2(1), 22-30. https://doi.org/10.11648/j.jbed.20170201.13

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ACS Style

Frank Bassey Ime; Acha Ikechukwu. Microinsurance and Its Untapped Economic Development Potentials in Nigeria. J. Bus. Econ. Dev. 2017, 2(1), 22-30. doi: 10.11648/j.jbed.20170201.13

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AMA Style

Frank Bassey Ime, Acha Ikechukwu. Microinsurance and Its Untapped Economic Development Potentials in Nigeria. J Bus Econ Dev. 2017;2(1):22-30. doi: 10.11648/j.jbed.20170201.13

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@article{10.11648/j.jbed.20170201.13,
  author = {Frank Bassey Ime and Acha Ikechukwu},
  title = {Microinsurance and Its Untapped Economic Development Potentials in Nigeria},
  journal = {Journal of Business and Economic Development},
  volume = {2},
  number = {1},
  pages = {22-30},
  doi = {10.11648/j.jbed.20170201.13},
  url = {https://doi.org/10.11648/j.jbed.20170201.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20170201.13},
  abstract = {This study highlights the potential contributions of microinsurance business to the growth and development of the Nigerian economy. It noted the low levels of insurance coverage where only 1% of the adult population is insured and insurance penetration of 0.68%. The contribution of insurance to GDP is put at a paltry 0.72% and poverty is so high that about 70% of the population live on less than $1.00 a day. The paper therefore examines the fundamental issues that bedevil the Nigerian economy and the insurance industry and the impact of the issues on the country’s economy. The inadequacy of data and relative newness of the microinsurance arrangement encouraged documentary review in this study, with extensive employment of secondary sources of information. Using a descriptive research design and employing tables, graphs, charts and percentages to analyze the data, the study shows that development of microinsurance business in Nigeria has the potential to undo some of the country’s economic woes, and ensure more insurance penetration and financial inclusion. It shows there are developmental gaps in the operation of insurance business in Nigeria which microinsurance business arrangement can effectively fill. The study therefore recommends, amongst other things, extensive information dissemination about microinsurance products, development of tailored microinsurance products for the target market of poor and low income earners and the employment of appropriate channels, like mobile network operators, market and farming associations etc, as payment platforms to disseminate information and collect premiums.},
 year = {2017}
}

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TY  - JOUR
T1  - Microinsurance and Its Untapped Economic Development Potentials in Nigeria
AU  - Frank Bassey Ime
AU  - Acha Ikechukwu
Y1  - 2017/01/03
PY  - 2017
N1  - https://doi.org/10.11648/j.jbed.20170201.13
DO  - 10.11648/j.jbed.20170201.13
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 22
EP  - 30
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20170201.13
AB  - This study highlights the potential contributions of microinsurance business to the growth and development of the Nigerian economy. It noted the low levels of insurance coverage where only 1% of the adult population is insured and insurance penetration of 0.68%. The contribution of insurance to GDP is put at a paltry 0.72% and poverty is so high that about 70% of the population live on less than $1.00 a day. The paper therefore examines the fundamental issues that bedevil the Nigerian economy and the insurance industry and the impact of the issues on the country’s economy. The inadequacy of data and relative newness of the microinsurance arrangement encouraged documentary review in this study, with extensive employment of secondary sources of information. Using a descriptive research design and employing tables, graphs, charts and percentages to analyze the data, the study shows that development of microinsurance business in Nigeria has the potential to undo some of the country’s economic woes, and ensure more insurance penetration and financial inclusion. It shows there are developmental gaps in the operation of insurance business in Nigeria which microinsurance business arrangement can effectively fill. The study therefore recommends, amongst other things, extensive information dissemination about microinsurance products, development of tailored microinsurance products for the target market of poor and low income earners and the employment of appropriate channels, like mobile network operators, market and farming associations etc, as payment platforms to disseminate information and collect premiums.
VL  - 2
IS  - 1
ER  -

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Author Information

Frank Bassey Ime

Department of Banking, Finance and Insurance, University of Uyo, Uyo, Nigeria
Acha Ikechukwu

Department of Banking, Finance and Insurance, University of Uyo, Uyo, Nigeria

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Plain Text BibTeX RIS

APA Style

Frank Bassey Ime, Acha Ikechukwu. (2017). Microinsurance and Its Untapped Economic Development Potentials in Nigeria. Journal of Business and Economic Development, 2(1), 22-30. https://doi.org/10.11648/j.jbed.20170201.13

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ACS Style

Frank Bassey Ime; Acha Ikechukwu. Microinsurance and Its Untapped Economic Development Potentials in Nigeria. J. Bus. Econ. Dev. 2017, 2(1), 22-30. doi: 10.11648/j.jbed.20170201.13

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AMA Style

Frank Bassey Ime, Acha Ikechukwu. Microinsurance and Its Untapped Economic Development Potentials in Nigeria. J Bus Econ Dev. 2017;2(1):22-30. doi: 10.11648/j.jbed.20170201.13

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@article{10.11648/j.jbed.20170201.13,
  author = {Frank Bassey Ime and Acha Ikechukwu},
  title = {Microinsurance and Its Untapped Economic Development Potentials in Nigeria},
  journal = {Journal of Business and Economic Development},
  volume = {2},
  number = {1},
  pages = {22-30},
  doi = {10.11648/j.jbed.20170201.13},
  url = {https://doi.org/10.11648/j.jbed.20170201.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20170201.13},
  abstract = {This study highlights the potential contributions of microinsurance business to the growth and development of the Nigerian economy. It noted the low levels of insurance coverage where only 1% of the adult population is insured and insurance penetration of 0.68%. The contribution of insurance to GDP is put at a paltry 0.72% and poverty is so high that about 70% of the population live on less than $1.00 a day. The paper therefore examines the fundamental issues that bedevil the Nigerian economy and the insurance industry and the impact of the issues on the country’s economy. The inadequacy of data and relative newness of the microinsurance arrangement encouraged documentary review in this study, with extensive employment of secondary sources of information. Using a descriptive research design and employing tables, graphs, charts and percentages to analyze the data, the study shows that development of microinsurance business in Nigeria has the potential to undo some of the country’s economic woes, and ensure more insurance penetration and financial inclusion. It shows there are developmental gaps in the operation of insurance business in Nigeria which microinsurance business arrangement can effectively fill. The study therefore recommends, amongst other things, extensive information dissemination about microinsurance products, development of tailored microinsurance products for the target market of poor and low income earners and the employment of appropriate channels, like mobile network operators, market and farming associations etc, as payment platforms to disseminate information and collect premiums.},
 year = {2017}
}

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TY  - JOUR
T1  - Microinsurance and Its Untapped Economic Development Potentials in Nigeria
AU  - Frank Bassey Ime
AU  - Acha Ikechukwu
Y1  - 2017/01/03
PY  - 2017
N1  - https://doi.org/10.11648/j.jbed.20170201.13
DO  - 10.11648/j.jbed.20170201.13
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 22
EP  - 30
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20170201.13
AB  - This study highlights the potential contributions of microinsurance business to the growth and development of the Nigerian economy. It noted the low levels of insurance coverage where only 1% of the adult population is insured and insurance penetration of 0.68%. The contribution of insurance to GDP is put at a paltry 0.72% and poverty is so high that about 70% of the population live on less than $1.00 a day. The paper therefore examines the fundamental issues that bedevil the Nigerian economy and the insurance industry and the impact of the issues on the country’s economy. The inadequacy of data and relative newness of the microinsurance arrangement encouraged documentary review in this study, with extensive employment of secondary sources of information. Using a descriptive research design and employing tables, graphs, charts and percentages to analyze the data, the study shows that development of microinsurance business in Nigeria has the potential to undo some of the country’s economic woes, and ensure more insurance penetration and financial inclusion. It shows there are developmental gaps in the operation of insurance business in Nigeria which microinsurance business arrangement can effectively fill. The study therefore recommends, amongst other things, extensive information dissemination about microinsurance products, development of tailored microinsurance products for the target market of poor and low income earners and the employment of appropriate channels, like mobile network operators, market and farming associations etc, as payment platforms to disseminate information and collect premiums.
VL  - 2
IS  - 1
ER  -

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