The current study investigated The rate at which SMEs go into extinction is alarming especially in emerging economies due to poor government policies and in-enabling business environment. It is expected that SMEs would take advantage of insurance policies to cover the obvious risks that they face. This study makes use of the UTAUT theory popularly applied to technology to understand what motivates SMEs to adopt insurance policies. The study enumerated 376 SMEs in the city of Ibadan Nigeria. Data was collected on performance claims/expectations, efforts expectancy, facilitating conditions, social influence and adoption of insurance policies/practices. The study found that performance claims/expectations, efforts expectancy significantly affected the adoption of insurance policy among SMEs in Nigeria. The study concluded that SMEs adopt insurance practices for expectations of what they would get from it and not for social influence nor because of facilitating environments. Insurance providers are advised to create awareness to SMEs on micro-insurance policies and its advantages to them.
