ANALYZING THE FACTOR INFLUENCE THE LOW LEVEL OF INSURANCE PURCHASING IN INDONESIA

Abstract

Developed countries in Asia, such as Singapore, show a good level of public understanding of the function and benefits of life insurance as a form of financial protection. On the other hand, life insurance penetration in Indonesia remains relatively low. This low growth and understanding of insurance products in Indonesia is influenced by various factors, such as financial condition, financial literacy, social welfare, public trust, and other factors. This study aims to analyze the factors influencing low insurance purchasing in Indonesia. The study used a quantitative approach using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. Data were collected through questionnaires distributed to selected respondents using pre-screening questions to ensure their characteristics matched the research objectives. Result of this study financial literacy, social welfare, trust, and intention are positively significant to buying. The results are expected to provide a deeper understanding of the factors influencing low level of insurance purchasing in Indonesia.