Insurance Literacy in Microinsurance Ownership among Instagram Users in Indonesia

Abstract

To encourage insurance purchases in Indonesia that has declined due to the COVID-19 pandemic, insurance companies start to popularize low cost microinsurance products. This study aims to analyze insurance literacy in microinsurance ownership among 106 Instagram users in Indonesia who have met the specified criteria. Insurance literacy is measured by several predetermined indicators. The data collected are analyzed using descriptive statistics analysis. The findings show that respondents with higher values of insurance literacy have a higher tendency to own microinsurance products than respondents with lower values of insurance literacy. The tendency to own microinsurance products is also determined by the demographic conditions of respondents, such as gender, education, marital status, employment, and income. This study emphasizes the need for developing a marketing strategy to improve insurance literacy education as the first measure to popularize microinsurance in Indonesia.