Nigerian Journal of Banking and Financial Issues (NJBFI)

RELIGIOUS BELIEFS AND PROPENSITY TO PURCHASE INSURANCE POLICY AMONG MSMES IN LAGOS STATE

Abstract

This study examined the relationship between religious beliefs and the propensity to purchase insurance among Micro, Small, and Medium Enterprise (MSME) owners in Lagos State. Using a descriptive survey design, 396 questionnaires were administered to selected MSMEs’ owners in Lagos State with the use of simple random sampling technique. Data for the study was analysed through the use of descriptive and inferential statistical tools. The hypotheses were tested with Pearson Product Moment correlation and linear regression analyses. Findings reveal that religious beliefs significantly but moderately influence MSMEs owners’ insurance purchase decisions in Lagos State. Specifically, the results indicate that spirituality significantly influences intention to purchase insurance while religious commitment was found to significantly affect willingness to buy insurance. Also, morality was found to be significantly related to MSMEs owner’s readiness to pay for insurance. For some MSME owners, faith provides a sense of security, reducing reliance on formal risk management while others resist insurance due to religious misconceptions. These insights highlight the need for insurance companies to develop culturally sensitive marketing strategies. Also, policymakers can implement educational programs to address religious concerns and promote insurance as a business sustainability tool.