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Motor insurance is flagship insurance products that have become the “face of insurance” to the insuring public. Against the backdrop of the image and penetration problem facing the insurance industry and the need to achieve the lofty objectives of the Market Development Research Initiatives and enhance the contribution of Insurance to GDP, we have embarked on and concluded a major perception and pricing research on Motor Insurance.

The qualitative aspect of the just concluded research involves In-Depth Interviews/Focused Group Discussions with 65 sampled individual and corporate users of motor insurance services while the quantitative research involves field interviews with 300 individuals that are responsible for one or more motor vehicles in Lagos.

The aim of the study is to understand the usage and attitude of Nigerians towards Motor Insurance in particular and discover how much they are willing to pay for motor insurance covers.

The reasons for the study as stated in Section one of the reports are itemized as follows:

  1. Nigeria’s Insurance penetration index of 0.46% in 2008, one of the lowest in Africa and developing world, is a begging challenge to understudy and redress the perception problems of the Nigerian populace towards insurance;
  2. The study is an attempt to explore modern marketing concept in gaining market penetration in motor insurance rather than the compulsion approach of 3rd party policies and the tariff approach to comprehensive policies;
  3. This study will enable operators gain insight into the price elasticity of motor insurance and thereby derive optimal price that will drive highest revenue and profit for the industry.

Specific Objectives of the study are also stated in Section One as:

  1. Gain insight into perception and usage habits of Nigerians towards Motor Insurance;
  2. Establish the level of understanding of Nigerians about the principles underlying Motor Insurance;
  3. Ascertain level of knowledge of insurance companies and motor insurance covers available in the market;
  4. Establish issues and gaps in the value chain of Motor Insurance services in Nigeria;
  5. Determine areas of satisfaction and dissatisfaction of the insuring publics about Motor Insurance service delivery, especially claims;
  6. Discover how much Nigerians are willing to pay to insure their vehicles.  
The result of this study will enable Nigeria Insurance Companies and the regulatory bodies to clearly understand how Nigerians perceive motor insurance services and identify key issues on market penetration of motor insurance. It will also help discover clues to effective positioning and communication of Motor Insurance services.

 

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