PSYCHOLOGICAL FACTORS MILITATING AGAINST USAGE OF INSURANCE OPPORTUNITY IN NIGERIA

Abstract

Many Nigerians are indifferent about insurance industry, services and the benefits. The research therefore appraises the psychological factors militating against usage of insurance opportunities in Nigeria. Theory of Needs by McClelland associated with Achievement Needs, Affiliation Needs, Power Needs served as the theoretical background. Insurance opportunities played an important role in reducing challenges in Nigeria’s socio-economic development by promoting financial stability, reduce anxiety, substituting for government security programmes, mobilizing national savings, and enabling risks to be managed. However, psychological factors such as attitude, motivation, perception, and personality militate against usage of insurance opportunities in Nigeria. It is recommended that there is the need to create awareness about opportunities that lies in usage of insurance policies among the general public. This awareness should be made in both rural and urban communities. With awareness, people will know of immense benefits associated insurance usage.