Does the Maslowian Theory of Hierarchy of Needs Explain the Perceived Insurance—Buying Apathy of Nigerians?

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.