THE EFFECT OF BUSINESS BEHAVIORS TOWARDS THE PURCHASE OF INSURANCE POLICIES IN NIGERIA

This study investigates the impact of business behavior on the purchase of insurance policies among businesses in Nigeria, with a focus on small and medium-sized enterprises (SMEs) and corporate organizations. Specifically, the study examines the effects of risk perception, trust in insurance companies, cost considerations, and awareness and education on insurance adoption. A descriptive survey research design was employed, and data were collected from 200 respondents using structured questionnaires. Descriptive statistics were used to summarize respondents’ demographic characteristics and perceptions, while inferential analysis, specifically multiple linear regression, was employed to test the hypothesized relationships. The results indicate that risk perception, trust in insurance companies, cost considerations, and awareness and education significantly influence the adoption of insurance policies among businesses. Risk perception and awareness were identified as strong positive predictors of insurance purchase, while high cost was a limiting factor. The study concludes that behavioral factors play a pivotal role in shaping businesses’ insurance decisions and recommends strategies for insurance providers and policymakers to enhance trust, improve awareness, and make insurance more accessible and affordable. The findings provide valuable insights for enhancing insurance penetration, promoting risk management, and supporting the sustainability of businesses in Nigeria