: 10.56472/25835238/IRJEMS-V5I2P115
Bekti Santoso. "Strategic Misalignment in Indonesia’s Life Insurance Industry in the Digital Economy: Evidence from Public Perceptions on Purchase and Retention Intentions" International Research Journal of Economics and Management Studies, Vol. 5, No. 1, pp. 120-133, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I2P115
PredictingIndonesia’s life insurance industry has experienced limited growth despite rising public expectations in the digital economy for services that are fast, simple, transparent, and consistent across channels. This gap matters because life insurance is a trust-based contract: customers pay today for benefits realized in the future. While technology increases expectations for clarity and speed, the product remains complex and future-oriented, making trust the key mechanism linking perceptions to behavioral intention. This study examines stagnation through Perceived Strategic Misalignment (PSM), defined as the public’s perception that industry service delivery is misaligned with digital-era expectations. Four service-domain perceptions are modeled as antecedents of trust: complexity (difficulty understanding products and processes), transparency (unclear information and terms), claim reliability (doubts about requirements, timelines, and fairness), and service integration (fragmented experiences across agents, branches, call centers, and digital platforms). Behavioral intention is analyzed separately for non-policyholders (purchase intention) and policyholders (retention intention). Data were collected via a structured online survey and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with bootstrapping to assess path significance and indirect effects. The results confirm that higher perceived misalignment reduces trust, while stronger trust increases both purchase and retention intentions. Clarity and claims credibility are more salient for purchase decisions, whereas service integration and accountability are more salient for retention. These findings suggest that stagnation in Indonesia’s life insurance market is not only a growth or distribution issue, but also a trust problem shaped by complexity, information clarity, claims confidence, and end-to-end service consistency.
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Claims Reliability, Perceived Strategic Misalignment, Public Trust, Purchase Intention, Retention Intention, Service Integration, Service Transparency.