The Relationship Between Income Level and Insurance Ownership in Akure, Ondo State

This study examines the relationship between household income level and insurance policy ownership in Akure, Ondo State, South West Nigeria. Income is widely hypothesized as a primary determinant of insurance demand, as higher-income households theoretically have greater financial capacity to pay premiums and greater asset value to protect through formal insurance mechanisms. In Akure, a semi-urban administrative capital with diverse income profiles, the empirical verification of this relationship in the Nigerian context provides important data for product pricing and market segmentation decisions. This research employs a cross-sectional survey design with 300 household heads selected through multistage random sampling from five residential wards in Akure. Questionnaires assess total monthly household income, current insurance policy holdings across all categories, number of policies owned, and annual premium expenditure. Spearman rank correlation and multiple regression analysis are applied to establish the strength and direction of the income-insurance relationship while controlling for education, household size, and employment type. Preliminary findings are expected to confirm a positive and significant correlation between income levels and insurance ownership rates. The study further examines the income thresholds at which household insurance demand transitions from single mandatory to multiple voluntary insurance products. Keywords: Income Level, Insurance Ownership, Akure, Ondo State, Insurance Demand.