This was disclosed in a report which was presented during the Annual National Insurance Consumers Colloquium.
The programme was organise by the Insurance Consumers Education Foundation, and Pastures Consult Limited in Lagos.
The report also showed that 20 million uninsured Nigerian adults were interested in microinsurance, had the required identity for microinsurance, and owned mobile phones.
Part of the report showed that in 2018, nearly half of adults in Nigeria said that they had experienced at least one event over the past year that caused unexpected expenses and made it very difficult to pay for things.
Eighteen per cent of all adults, or 18 million adults, said that serious illness of a household member had caused unexpected financial strain.
The most common coping mechanisms were using savings, borrowing from friends/family, cutting down on expenses and selling assets.
It showed that many uninsured adults said that they did not use insurance because they had not thought about it or did not know much about insurance.
The report said that less than two per cent of Nigerian adults were insured.
When many adults were asked why they did not have insurance, many responses indicated that Nigerians were not necessarily opposed to purchasing insurance policies; rather they had not thought about insurance or were unclear about the policies/benefits.
Some also cited concerns about affordability, which demonstrated the opportunity for microinsurance products that were inexpensive and possibly bundled with other services that Nigerians used.
The research proffered recommendations to boost the growth of microinsurance.
It mentioned that it was cogent to create an enabling environment, promote a regulatory approach that encouraged widespread deployment of microinsurance, and provide enabling conventional insurance providers to also provide microinsurance.
EFInA said it was important to review bancassurance model, explore new delivery channels, develop appropriate products, take a customer-centric design approach, build customers’ understanding and trust, provide simple terms, clearly communicated and ensure a fast claims processing system.