Impact of E-Insurance Platforms and Customer Trust on Risk Mitigation Strategies in Nigeria’s Insurance Industry

Ayegbajeje Samsom Osuolale¹ and Ginika Chima Emmanuel²

Abstract

This study investigated the impact of e-insurance platforms and customer trust on risk mitigation strategies in Nigeria’s insurance industry. A quantitative survey design was adopted, and data were collected from 150 respondents drawn from 10 insurance firms across Lagos, Ogun, and Oyo States. A structured questionnaire measured e-insurance platform quality, customer trust, and risk mitigation strategies using validated Likert-scale items. Reliability was confirmed with a Cronbach’s alpha of 0.834. Data were analyzed using descriptive statistics, correlation analysis, and simple regression models. Findings revealed that perceptions of e-insurance platforms were high, while customer trust and risk mitigation strategies were moderate. Correlation results showed significant positive relationships among the variables. E-insurance platforms exhibited a weak but significant influence on risk mitigation strategies (r = .200, p < .05), explaining 4% of the variance (R² = .040). Customer trust demonstrated a stronger effect (r = .486, p < .01), accounting for 23.6% of the variance in risk mitigation strategies (R² = .236). Both regression results led to the rejection of the null hypotheses. The study concluded that although e-insurance platforms contributed to improved fraud detection, operational efficiency, and digital process monitoring, customer trust played a more substantial role in enhancing effective risk mitigation. It was recommended that insurers strengthen platform reliability, improve transparency, enhance data security, and invest in customer education to build trust and optimize risk management outcomes in Nigeria’s digital insurance landscape.