The Effect of Digitalization and Human Capital on Life Insurance Demand in Indonesia

Karin Amelia Safitri, Safrin Arifin

2019

Abstract

The insurance industry has a vital role in contributing to the rate of economic growth of a country which is directly related to the human resources and the implementation of industry revolution 4.0 through digital transformation. This study aims to provide the evidence on the contribution of digitalization based on communication and information technology, and human capital consisted of age dependency ratio, labour force, and life expectancy on life insurance demand in Indonesia. This study used the 16 years of annual data for the period from 2002-2017 and analyzed by using principal component regression for the research method. The result indicated that digitalization and human capital have a significant effect on the demand for life insurance products at 5%. The findings show that age dependency ratio has a negative relationship with life insurance demand as hypothesized. The labour force, life expectancy, individuals using the internet and broadband subscription have a positive impact on life insurance demand. Insurance industries are recommended to develop the human capital and their digital equipment to expand the business.

Paper Citation

in Harvard Style

Amelia Safitri K. and Arifin S. (2019). The Effect of Digitalization and Human Capital on Life Insurance Demand in Indonesia. In Proceedings of the 4th International Conference of Vocational Higher Education - Volume 1: ICVHE, ISBN 978-989-758-530-2, pages 364-369. DOI: 10.5220/0010685200002967

in Bibtex Style

@conference{icvhe19,
author={Karin Amelia Safitri and Safrin Arifin},
title={The Effect of Digitalization and Human Capital on Life Insurance Demand in Indonesia},
booktitle={Proceedings of the 4th International Conference of Vocational Higher Education - Volume 1: ICVHE,},
year={2019},
pages={364-369},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010685200002967},
isbn={978-989-758-530-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference of Vocational Higher Education - Volume 1: ICVHE,
TI - The Effect of Digitalization and Human Capital on Life Insurance Demand in Indonesia
SN - 978-989-758-530-2
AU - Amelia Safitri K.
AU - Arifin S.
PY - 2019
SP - 364
EP - 369
DO - 10.5220/0010685200002967