Social Capital and Cooperative Insurance Behavior in Rural Communities in North Central Nigeria

This study investigates the role of social capital in facilitating cooperative insurance behavior and informal risk-sharing arrangements among rural communities in North Central Nigeria, specifically in Nasarawa and Kogi states. Social capital theory posits that trust networks, community norms, and reciprocity mechanisms enable collective action in resource-constrained environments, creating a foundation for informal insurance equivalents. Understanding how social capital mediates formal insurance adoption and shapes community risk management practices is important for designing insurance products compatible with existing social structures. This research employs a mixed-methods design with a household survey of 420 rural residents and qualitative interviews with community leaders and cooperative society administrators across six rural communities. The survey measures bonding and bridging social capital dimensions, participation in informal risk-sharing groups, formal insurance ownership, and household loss experience and recovery. Structural equation modeling integrates quantitative findings, while thematic analysis contextualizes the community-level qualitative data. Preliminary findings are expected to indicate that strong bonding social capital is positively associated with informal insurance participation but has an ambiguous relationship with formal insurance adoption, depending on trust levels in external institutions. The research recommends community-based insurance delivery models that leverage existing social capital structures. Keywords: Social Capital, Cooperative Insurance, Risk-Sharing, North Central Nigeria, Rural Communities.