Socio-Economic Factors and the Demand for Insurance: A Study of Selected Sole-Proprietorship in Lagos Metropolis

Purpose: Insurance holds different meanings to various categories of people. Hence, the aim of this study is to examine the attitude of sole proprietors towards insurance and explore the relationship between socio-economic factors and the demand for insurance using sole proprietors in Lagos metropolis, Nigeria, as a case study. Design/Methodology/Approach: Hypotheses were formulated and tested using the chi-square and Pearson correlation statistical tool to examine the relationship between the variables, while the simple percentage method was used for the data analysis. Findings: The findings of this study therefore showed that a significant relationship existed between socio-economic factors and sole proprietors’ demand for insurance. Consequently, there is the need for insurance companies to embark on a massive public awareness program in educating sole proprietors on the importance of insurance at the same time as endorsing the right insurance product to meet prospective individual needs. These would boost the image of the industry and guarantee increased demand for insurance by sole proprietors. The finding highlights the importance of insurance in management practices, emphasizing that it is beyond conventional perception as a risk-transfer mechanism; it also serves as a strategic investment tool for managing contingencies and ensuring financial stability. Practical Implications: Socioeconomic factors are subjectively broad, but this study focused specifically on five variables, which include educational background, income and savings attitude, age differences, health, lifestyle, and gender. Originality value: This study is purely a survey-designed research, and the primary data was collected through structured questionnaires and interviews while the secondary data was gotten from textbooks and journals.