Analysis of Bancassurance as a Strategy for Insurance Penetration in Ibadan, Oyo State

This study analyzes bancassurance as a distribution strategy for improving insurance penetration in Ibadan, Oyo State, South West Nigeria. Bancassurance, the practice of selling insurance products through commercial banking channels, has gained regulatory support from both NAICOM and the Central Bank of Nigeria as a mechanism to leverage existing banking relationships for insurance market development. Ibadan, as a major urban center in South West Nigeria with a sizeable banked population and active commercial sector, presents a suitable context for evaluating the effectiveness of this model. The research employs a survey design involving 300 bank customers and 50 bank relationship officers across five commercial banks in Ibadan metropolis. Structured questionnaires and in-depth interviews capture data on customer awareness of bancassurance products, purchase intentions, cross-selling effectiveness, and barriers to conversion from banking to insurance services. Descriptive and inferential statistics, including Pearson correlation, are employed to assess the relationship between customer trust in banks and willingness to purchase bank-packaged insurance products. Preliminary results suggest that existing trust in banking institutions positively influences insurance uptake through this channel, although product complexity and inadequate staff training remain limiting factors. The study recommends targeted staff development programs and simplified product designs to enhance bancassurance outcomes in the Ibadan market. Keywords: Bancassurance, Insurance Penetration, Oyo State, Distribution Strategy, Bank Customers.