In Nigeria there is low insurance patronage and the vast majority of citizens are exposed to various types of risks. The resulting effects are poverty, economic insecurity, insurgency, and social vices. Microinsurance is considered as one of the most effective means of reducing the vulnerability of the poor from the impacts of disease, theft, violence, disability, fire and other hazards. Microinsurance can break the cycle of poverty in Nigeria by providing low-income households, business and farmers with access to post disaster liquidity, thus protecting their livelihoods and providing for reconstruction. Therefore, insured households and firms are more credit worthy. These kinds of insurances can also promote investments in productive assets and higher risk yield crops. The study recommends the establishment of microinsurance in Nigeria, whilst ensuring that this is done in accordance with the social, cultural and religious settings of the local people, so it can gain recognition and acceptance.
Mediterranean Journal of Social Sciences