ENHANCING PT AJSE LIFE INSURANCE BUSINESS GROWTH USING THE DIGITAL PLATFORM THROUGH THE SUCCESS OF MAJOR INDONESIA’S INSURANCE COMPANIES

• Main Author: Adiyono, Yunika
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79714
• Institution: Institut Teknologi Bandung

The COVID-19 pandemic significantly impacted Indonesia's economy and financial sector, leading to a rapid shift towards Digital Financial Innovation (DFI) and Financial Technology (Fintech), particularly in the insurance industry. This transformation has been vital in addressing operational challenges. The Financial Services Authority (OJK) is pushing technology integration, despite the low insurance coverage rate of only 3.18% among Indonesians in 2021. Given the unique opportunities and challenges faced by the insurance industry, the growing significance of DFI and Insurtech in boosting the productivity and profitability of the insurance sector highlights the critical role that digital innovation plays in Indonesia's changing insurance landscape. The objective of this research is to provide valuable financial insights and project the financial performance of PT Asuransi Sejahtera if adapting to the changing online insurance market landscape and mitigating potential business losses. After collecting evidence of the impact of DFI on the profitability ratios of Indonesia's leading life insurance companies from 2018 to 2022. The forecasting of the future financial performance of PT Asuransi Sejahtera amidst the digital transformation of the insurance sector is done. Employing a quantitative method, the research scrutinizes historical financial data to forecast PT Asuransi Sejahtera’s performance, leveraging industry benchmarks and strategic digitalization to navigate the challenges and capitalize on the opportunities of the online insurance market. The results show that overall DFI concluded to be positively influenced profitability within the top life insurance companies, indicates that digitalization is critical for financial resilience in the sector. For PT Asuransi Sejahtera, a small-scale insurer with promising growth potential, the study forecasts that embracing DFI can lead to gains in total income and total assets. Three scenarios—best, middle, and worst— delineate the potential outcomes of DFI implementation, reflecting the strategic importance of digitalization for PT Asuransi Sejahtera. ii Based on the research, the recommendation is to strategically reframe PT Asuransi Sejahtera, prioritizing DFI integration in core operations, fostering employee digital marketing competencies, and developing customer-centric digital services. It will also be important to capitalize on the insurer's association with a major e-commerce platform for deeper digital market penetration. The research emphasizes the need for PT Asuransi Sejahtera to adopt a digital-first approach to remain competitive and adapt to the fast-evolving online insurance landscape, addressing key research questions about DFI's impact on profitability, financial projections considering DFI, and strategies for adapting to the online insurance market.