TITLE:
Does the Maslowian Theory of Hierarchy of Needs Explain the Perceived Insurance—Buying Apathy of Nigerians?
AUTHORS:
Cosmas Ogobuchi Odo, Chinedu Crescent Okeke, Nneka Betty-Jean Agu
KEYWORDS:
Nigerian Insurance, Maslowian Theory of Hierarchy of Human Needs, Poverty, Quasi-Insurance Institutions
JOURNAL NAME:
Journal of Financial Risk Management,
Vol.12 No.3,
September
18,
2023
ABSTRACT: The paper seeks to establish whether Maslowian theory of hierarchy of
human needs, in concert with other factors, could be a valid explanation for
the observed poor insurance buying behaviour of most Nigerians. Relying mainly
on literature evidence it was observed that, given the poverty level in the
country, an average Nigerian would be concerned more with his existential needs
than bother about security needs, to which insurance buying decision relates.
Therefore the paper contends that Maslowian theory, might have partly explained
the observed apathy towards insurance products. Furthermore, the study noted
that the fatalistic attitude of the adherents of the country’s dominant faiths,
Islam and Christianity, together with the autochthonous age-long
quasi-insurance institutions in the country jointly undermine
insurance-appetite of the insuring public. The paper therefore concludes that
stimulating demand for insurance will not come easily just by increased
legislations as has been done hitherto by the regulatory body. Rather, this
would require a mix of strategies including, improving the image of insurance
companies in public consciousness via prompt settlement of all genuine claims,
creatively aligning the local insurance institutions into the mainstream
insurance system and finally putting in place an effective public policy
framework that not only reduces governance-induced corruption but also would
encourage income redistribution to the poor.