The layman calls insurance "what if?" money. Car insurance most times doesn't make sense because you pay "what if?" money periodically for the vehicle only for nothing to happen during its duration with you. End of the day you've thrown away a portion of income you'd've used on better things.
With health insurance it's never a guarantee you'd fall ill and even with it in mind the total amount one'd pay maintaining the policy agreement overtime would make paying a one-time 100k admission fee pale in comparison.

Many Nigerians don't simply understand this insurance thing and really don't give it a think at all.

I think trust is still the problem because Nigeria's like cheating one another

naijacutee:
I like your explanation, @charix. But people also "sow seed" in churches with no immediate (physical) benefits. How are people more ready to sow a seed at the compulsion of a preacher

People in general enjoy helping others. Don't forget the preacher most times reminds the congregation the money goes to charity. Couple the fact everybody wants to make heaven and sowing seeds is the cheapest method of reach to the common man on the street.

and remain unwilling to sow a seed for healthcare for them and their families?

A combination of my earlier post and ignorance on the part of people. I can count on one hand the amount of insurance advertisements I've come across on tv here, none of them give the slightest idea what insurance entails however during my stay outside the country I was bombarded with commercials upon commercials from insurance companies - most going into details of what type, how long and their benefits; many were a sentence or two away from defining what the word insurance meant to the layman. I guess the educational level and exposure of the common man plays a role.

infogenius:
Many Nigerians don't simply understand this insurance thing and really don't give it a think at all.

True, Some Nigerians are skeptical about insurance as a whole, don't want to hear about it at all, let alone buy into it, I don't know how you can benefit from sth without having a knowledge of it. in this present economic dispensation, it is actually wise for every citizen to have all the necessary insurance policy with a reputable insurance company. it's that simple, transfer your risk at a token and enjoy peace of mind knowing the insurance is there to reinstate or replace to the position you were before any uncertainties, and if there is no uncertainty at the end of the policy term, give thanks to God and renew your policy for the next term, you sha enjoy peace of mind.

Actually, insurance should be encouraged at every sector of Nigeria's economy, public and private.
Take for instance, I am a medical personnel and I can say that insurance would greatly enhance health care delivery in Nigeria. It would be a long story, but health insurance would reduce the number of deaths due to lack of money for health care.
Health insurance in Nigeria also has its own challenges that has made it difficult for people to participate, even for other insurance policies like life, car, housing and mortgage, etc.

But for now, here is a complete list of insurance companies in Nigeria and their coverage.
Top among the list are AIICO, Leadway, AXA Mansard, Custodian and Allied, Cornerstone, etc

Complete List of Insurance Companies in Nigeria