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Vol 39 No 3 (2024): September

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Submitted
Aug 8, 2023
Accepted
Mar 21, 2024
Published
Sep 10, 2024
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Socio-Demographic Determinants of Insurance Literacy among University Students in Indonesia

https://doi.org/10.22146/jieb.v39i3.9389
Reza Yamora Siregar
IFG Progress, Indonesia Financial Group, Jakarta, 12190, Indonesia
Nada Serpina
nada.serpina@ifg.id
IFG Progress, Indonesia Financial Group, Jakarta, 12190, Indonesia

Corresponding Author(s) : Nada Serpina

nada.serpina@ifg.id

Journal of Indonesian Economy and Business, Vol 39 No 3 (2024): September

Abstract

Introduction/Main Objectives: This research aims to investigate the level of insurance literacy among economics and business students and identify the socio-demographic factors impacting the level of insurance literacy. Background Problems: Low insurance literacy has long been identified as the cause behind the weak insurance penetration growth in Indonesia. College students area potential market for the development and deepening of the insurance sector. Novelty: However, hardly any studies have been published that assess the insurance literacy of university students in Indonesia. This study also presents a unique view of students’ insurance knowledge across different universities in Indonesia, providing an understanding of the factors contributing to their literacy level. Research Methods: We conduct the commonly applied ordinary least squares test on the survey data collected using stratified random sampling. Findings/Results: The test results conclude that students from universities in Java, who have mothers who graduated from college, come from middle-income families, and live in Java have significantly higher insurance literacy levels compared to the rest of the students. However, gender and residency do not seem to significantly impact insurance literacy. Conclusion: Our study shows that socio-demographic factors influence university students’ level of insurance literacy. These findings provide valuable information for policymakers and insurance firms to target this potential market with their insurance products.

Keywords

Insurance socio-demographic university students education background family background
Siregar, R. Y., & Serpina, N. (2024). Socio-Demographic Determinants of Insurance Literacy among University Students in Indonesia. Journal of Indonesian Economy and Business, 39(3), 237-255. https://doi.org/10.22146/jieb.v39i3.9389
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Author Biographies

Reza Yamora Siregar, IFG Progress, Indonesia Financial Group, Jakarta, 12190, Indonesia

Reza Yamora Siregar is the Head/Senior Executive Vice President at IFG Progress. He earned his Bachelor’s degree in Economics and Minor in Mathematics at Boston University, USA. He did his Master’s degree in Economics and also completed his Ph.D. at Brown University, USA. His research interest covers Open and Development Macroeconomics, Monetary Economics, International Finance & Trade, and Applied Time-Series Econometrics. Reza held many notable positions in the past, including as the Chief Representative of the Singapore Office at the Institute of International Finance (2018-2019), Executive Director/Chief ASEAN Economist at Goldman Sachs Singapore (2014-2016), Senior Economist at International Monetary Fund (2006-2009, 2016-2018), and Lead Economist at the ASEAN+3 Macroeconomic Research Office Singapore (2011-2014). Currently, Reza is also serving in several capacities, notably being a Special Adviser to the Coordinating Ministry for Economic Affairs Republic of Indonesia, Faculty Member at Bank Indonesia Institute, Adjunct Faculty of the Asian Public Policy Program at Hitotsubashi University, as well as a Senior Financial Sector Adviser at Australia Indonesia Partnership for Economic Development (PROSPERA).

Nada Serpina, IFG Progress, Indonesia Financial Group, Jakarta, 12190, Indonesia

Nada Serpina is the Research Associate at IFG Progress. Before that, Nada worked at the Otoritas Jasa Keuangan (OJK) (2019-2021) as one of the Research Fellow directly under the Financial System Stability Directorate and handled a variety of financial stability issues, financial services industry, and also economic assessments related to global and domestic macroeconomic. She earned her Bachelor’s degree in Economics at the Faculty of Economics and Business, Universitas Gadjah Mada. Her research interests lie in the areas of insurance and banking sector, macroeconomics, financial economics, monetary and fiscal policy. She has collaborated actively with other researchers from various fields in many research projects.

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