Investigation of Marine Insurance Uptake Among Vessel Operators in Ondo State Coastal Waters

Marine insurance is a critical risk management instrument for vessel owners and operators, providing financial protection against loss from marine perils. This study investigates the extent of marine insurance uptake and the factors influencing insurance behaviour among vessel operators in the coastal waters of Ondo State, South West Nigeria. A descriptive survey design was adopted, using structured questionnaires administered to ninety-five vessel operators including artisanal fishermen, passenger ferry operators, and small cargo boat owners at Igbokoda, Okitipupa, and Ilaje coastal communities. In-depth interviews were conducted with five marine insurance brokers serving the area. Findings indicate that marine insurance uptake among the sampled operators is extremely low, with fewer than eight percent carrying any form of marine hull or liability coverage. The primary barriers identified are affordability of premium payments, lack of awareness of available marine insurance products, distrust of insurance companies based on negative claims experiences, and the predominantly informal business registration status of vessel operators which precludes access to formal financial services. The research finds that uninsured vessel losses result in permanent exit from the maritime trade for a significant proportion of affected operators, exacerbating poverty in coastal communities. Recommendations include development of micro-insurance products tailored to artisanal maritime operators, outreach programmes by the National Insurance Commission in coastal communities, and linkage of vessel registration to a mandatory minimum third-party liability insurance requirement. Keywords: marine insurance, vessel operators, Ondo State, artisanal fishing, risk management