The Impact of Financial and Internet Access on Insurance Penetration in Nigeria


  • Funso Tajudeen Kolapo


Financial Access, Internet Usage, Insurance Penetration


African countries have relatively low insurance penetration rate when compared with the
Asian market, this may be linked to the low level of financial and internet access in the
region. Therefore, this study assesses the impact of financial and internet access on Nigeria’s
insurance penetration for the period of 1990 to 2021. Secondary data was obtained from the
World Bank databases and the Heritage Foundation. Adopting the ARDL framework, the
results showed that financial access and internet access affect insurance penetration
positively and significantly. Financial freedom and remittances are also positively related to
insurance penetration. The study concludes that insurance penetration is driven by financial
access, internet access, financial freedom, and remittances. Decision-makers should
understand the crucial significance that internet penetration plays, therefore, insurance
providers can benefit from policies and programmes geared exclusively toward them with the
intention of promoting ICT adoption by helping insurers create innovative and robust
strategies. The Nigerian government should take steps to encourage financial access because
doing so will also result in a rise in insurance penetration. The catalytic role of remittances
for insurance penetration also suggests the need to develop more migrant transfer related
policies which could provide insurance against domestic output shocks.