Determinants of Insurance Adoption: Regional Disparities in Nigeria

Purpose: This study explores the determinants of insurance adoption , across Nigeria's six geopolitical zones, examining how regional disparities interact with these determinants. Design/Methodology/Approach: A cross-sectional survey was conducted with 615 adults across Nigeria's six geopolitical zones using stratified sampling. Data were collected through structured questionnaires. Analysis employed logistic regression, Chi-square tests, and Pearson correlation. Research Limitation: The study focuses on urban and peri-urban areas, limiting generalisability to rural populations. The cross-sectional design captures associations rather than causal relationships. Findings: Significant regional differences in insurance inclusion emerged (χ² = 52.3, p < 0.01), with South-West (Index = 4.2) and South-South (Index = 4.0) leading, while northern regions lagged. Key adoption determinants were digital readiness (OR = 2.51, p < 0.001) and trust (OR = 2.29, p < 0.001), while renewal was most influenced by trust (OR = 3.06, p < 0.001) and service quality (OR = 2.39, p = 0.002). Accessibility, affordability, education, and income also significantly shaped participation. Practical Implication: Findings highlight the importance of building trust, enhancing financial literacy, and expanding digital access to improve insurance uptake, especially in underserved northern regions. Social Implication: Addressing regional disparities can reduce household vulnerability to shocks and promote more equitable economic development across Nigeria. Originality/Value: This study develops and tests an integrated framework combining behavioural, structural, and technological perspectives with regional moderation, offering a deeper understanding of insurance inclusion in emerging markets.