Assessments of Socio-Economic and Demographic Factors Influencing Insurance Buying Behaviour among Small and Medium-Sized Enterprises in Lagos, Nigeria

Socio-economic and demographic metrics are important yardsticks in the behaviour pattern of an individual. They influence the behavioural attitude of people to perceive the image of insurance as an intangible, inseparable, variable, and transferable product. Therefore, this study aimed at assessing the effects of socio-economic and demographic factors on insurance buying behaviour, with specific reference to the perceptions of selected SMEs in Lagos, Nigeria. The study adopted a cross- sectional survey research design. The study population consisted of the total number of registered SMEs recorded in Lagos State at 11,666. Thus, a single-stage cluster sampling technique was employed in the questionnaire distribution and data collection processes. A total of 386 copies of questionnaire were distributed, of which 243 were found usable which represented a 63% response rate. The major statistical technique employed was multivariate regression. This study confirms the importance of socio-economic and demographic factors in the behavioural evaluation of insurance purchases in Lagos, Nigeria. This study recommended that insurance providers in Nigeria should attempt to tailor insurance products in a lovable and affordable manner to SMEs’ operators/owners in a bid to sharpen their socio-economic and demographic risk attitudes. More so, SMEs operators should try to shift their desire to manage the thrust of risk-off to the insurance providers for adequate business, economic and financial security. Given this implication, similar studies should be carried out in other industries in this country.