Issue 3/2022 211 RISK AVERSION AND SELF INSURANCE UTILIZATION: EVIDENCE FROM SMALL AND MEDIUM SCALE BUSINESS OWNERS IN LAGOS STATE Olufemi Adebowale ABASS 1 , Temidayo Jerry OLUBUSADE 2 1,2 Department of Insurance, Faculty of Management Sciences, Lagos State University, Lasu Main Rd, Ojo 102101, Lagos, Nigeria. Phone : 08024392582 Email: olufemi.abass@lasu.edu.ng;temidayo.olubusade@lasu.edu.ng. How to cite: Abass, O.A., & Olubusade, T. J. (2022). “Risk Aversion and Self Insurance Utilization : Evidence From Small and Medium Scale Business Owners in Lagos State”. Annals of Spiru Haret University. Economic Series, 22(3), 211-222, doi: https://doi.org/10.26458/22311 Abstract This study is to examine the influence of risk aversion on the adoption and utilization of self-insurance among Small Medium Enterprises (SME) owners in Lagos State. This study employed cross sectional class of survey research design. Three hundred and fifty SME owners were selected using Taro Yamane formula and the data obtained was analyzed using correlation and t-test inferential statistics. Questionnaires were administered through convenience sampling method. The result of the study revealed a significant relationship between risk aversion and self-insurance utilization among SME owners in Lagos State. Additionally, the result of this study also revealed that there is no significant difference between preference for conventional insurance and self- insurance among Lagos State SME owners. Based on the findings of this study, it is recommended that conventional insurers should endeavor to develop products that address the actual needs of SMEs. It is also recommended that SME owners should be highly disposed to risk improvement measures as this would help to reduce the cost of market insurance and self-insurance even if both are taken up contemporaneously.