Academic journal article International Review of Management and Business Research

Antecedents Analysis of Trust, Satisfaction and Consequence of Commitment in Customer Relationship Life Insurance in Jakarta

Academic journal article International Review of Management and Business Research

Antecedents Analysis of Trust, Satisfaction and Consequence of Commitment in Customer Relationship Life Insurance in Jakarta

Article excerpt

(ProQuest: ... denotes formulae omitted.)


Indonesia is a large country that is currently ranked as the fourth most populous in the world after China, India and the United States (The World Bank Group, 2013 ). It will certainly have a great impact on the economic activity, both activities that produce goods and services. The number of inhabitants and the potential for increased competitiveness, Indonesian society, reflecting the fact that Indonesia has the potential capital market. However, insurance companies do not maximize his request. It can be seen from the small market penetration is still in Indonesian life insurance 1.1 % compared with the total population of 235,3 million, with a GDP per capita of $ 3,495. Life insurance penetration in Indonesia is still inferior to India which has a GDP per capita of $ 1,509 with a population of 1.241.491.960 people, capable of performing life insurance penetration of 3.4 %. Means the ability of the insurance company in India to attract potential customers better than insurance companies in Indonesia (Ernts & Young , 2012).

In terms of life insurance participation in Indonesia from the 2007-2011 average of 3.66 %, or an annual increase is only 0.38 %. Compared with the population growth rate of approximately 1.25 % per year is very small (Lap.AAJI , 2012). The low life insurance ownership is caused by several factors, the first level of income is not too high, people do not understand the benefits of life insurance that life insurance is not a priority. Third lack of effort by the life insurance industry to educate the market about the importance of life insurance (Ernst & Young, 2012). Furthermore, Ernst & Young survey gives some interesting information related to trust, satisfaction and economic content, resource content, social content and the emotional content in building commitment and intensity of the relationship between the customer (client) with a life insurance company (service provider).

The results of research on the level of confidence (trust) life insurance customers associated with economic content, 85 % Indonesian customers believe that products are purchased as needed, and 52 % of respondents would choose to buy the same product, if the convenience and value of benefits is maintained. Confidence (trust) that is established by the resource content is represented by the company's reputation for its performance in providing services to customers, 42 % say they do not believe. Disclosure of information, consistency of the various sources that make up the confidance benefits delivered to customers, should be simple, pro with consumers as well as easy to understand. 38 % rensponden will make direct contact with the insurance company (agent), 47 % through the official website of the company. For the level of confidence (trust) formed by social content, which is represented by the consistent delivery of information. Confidence (trust) which is formed by the emotional content is represented by convenience (enjoy), 43 % of respondents say quite comfortably, by reason of the company provides convenience in the purchase process. Likewise, the product purchased is believed to meet their needs. Another thing about the belief that the quality of the products offered by the insurance company have a good quality perception rensponden reflected in the results, 79 % said the product is trustworthy (Ernst & Young , 2012).

Similarly, the economic side of the content, life insurance companies in Indonesia only got a percentage of 26% while Malaysia is able to reach 37 %. China life insurance company that is able to dominate the economic content for the Asia Pacific region by 52 % ( Ernst & Young ; 2012).

Iinteraction and ease of access of the social content related to the disclosure of information that was built by a company is essential to build trust and satisfaction. A survey conducted by Ernst & Young (2012) revealed for the Asia Pacific region, 89 % of respondents said the interaction and openness is very important. …

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