INFLUENCE OF ADOPTION OF INDUSTRY 4.0 ON THE PERFORMANCE OF INSURANCE COMPANIES IN NIGERIA

Abstract

This study investigates the influence of Industry 4.0 adoption on the performance of insurance companies in Nigeria, employing a rigorous research approach incorporating both cross-sectional and survey methodologies. The research delves into the intricate relationship between the uptake of Industry 4.0 technologies and the expansion of the insurance market within Nigeria. Utilizing a comprehensive population pool comprising 504 managerial staff across 56 insurance companies, a sample size of 228 was meticulously crafted using Taro Yamane’s formula for finite populations. To enhance robustness, the initial sample size was prudently increased by 20% in line with Israel’s recommendation (2013), resulting in 208 meticulously completed questionnaires representing a commendable 78% response rate. The findings reveal that adoption of 4.0 significantly influences the performance of insurance companies in Nigeria. The study further recommends that insurance companies continue to invest in and prioritize the adoption of Industry 4.0 technologies to further enhance their operational efficiency, risk management capabilities, and overall profitability in the dynamic and competitive Nigerian insurance market.