Behaviour Analysis of Export Oriented SMEs Owners on Decission Making Toward Life Insurance

Abstract

This is a joint research between Indonesian Insurance Institute (AAMAI) and Gunadarma University (UG), fully funded by the Indonesian Insurance Institute. This research was conducted based on the reality that there are still have lacks of society’ awareness to make use of life insurance service. This research was aimed at identifying factors that influence the policy holders in making decision to purchase a life insurance service. The population of the research are the owners of export oriented SMEs who are life insurance policy holders in Yogyakarta Province, consisted of 285 respondents. The sampling technique is purposive sampling is purposive which means that the SMEs policy holders in Yogyakarta Province. The size of sample is of 125 people taken by systematic random sampling. The data collection technique used is questionnaire with five-point Likert Scale approach. The result of the research shows that there are six factors that influence the decision making to purchase life insurance service. Those six factors are: psychological and process, individual and role, claim payment, marketing mixed, social, culture, and location factor. Each factor was represented by main variable (surrogate variable) with its highest loading factor, that are motivation, economic condition, bonafidity of company, personal selling, core families, and cultural variable.