Assessment of Insurance Adoption in Management Properties in Ilorin, Nigeria

Abstract

This study investigates the level of insurance adoption and its influencing factors in the management of income-generating properties in Ilorin, Nigeria, a rapidly urbanizing city with a dynamic real estate market. The research assessed the extent of insurance coverage among properties managed by estate surveying and valuation firms and identified key determinants influencing its adoption. A descriptive survey research design was employed, targeting registered estate surveying and valuation firms and property owners. Valid responses were obtained from 24 firms and 83 property owners. Data were collected using structured questionnaires and analyzed through descriptive statistics, weighted mean scores, factor analysis, and binary logistic regression. Findings reveal low insurance adoption, with 83.3% of residential and 75.0% of commercial properties having no form of insurance, and even the properties noted to have insurance cover in each management portfolio of the estate surveying and valuation firm are categorized within a range of 1 – 10 properties, highlighting a significant risk exposure gap. The weighted mean score analysis revealed that awareness of insurance benefits, access to credit and mortgage requirements, and cost of insurance premiums were key factors influencing adoption levels. Factor analysis identified four key determinants, which are Economic and Financial Considerations, Socio-Cultural and Relational Influences, Regulatory and Institutional Environment, and Risk and Experience Factors. Economic and Financial Considerations, and Regulatory and Institutional Environment were statistically significant predictors, with odds ratios of 5.937 and 3.083, respectively. The study concludes that economic incentives and robust regulatory frameworks are critical to enhancing insurance uptake, while socio-cultural and risk-related factors play secondary roles. To improve adoption, it is recommended that stakeholders develop affordable insurance products, strengthen regulatory enforcement, and intensify public awareness campaigns to promote insurance literacy and trust. Future research should explore longitudinal trends in insurance adoption and the impact of emerging insurtech solutions in Nigeria’s real estate sector.