Determinants of Insurance and Insurer Preferences Among Financial Consumers in ASEAN: Evidence from Myanmar, Vietnam, and Indonesia

Lim, Soyoung; Jung, Hongjoo

doi:10.2478/irfc-2025-0008

Figures & Tables

Definition and Classification of Variables

Variables	Definition
lnINC (Income)	Log annual income [ISD]
REL (Religiosity)	Sum of likert scales
FLI (Financial literacy)	Sum of correct answers
FINT (Financial trust)	Sum of likert scales
GOVT (Government trust)	Sum of likert scales
SIT (Social insurance trust)	Sum of likert scales
PIT (Private insurance trust)	Sum of likert scales
EDU (Education)	1= > high school
EDU (Education)	0= ≤ high school
AGE (Age)	Age in years
GEN (Gender)	1=male
GEN (Gender)	0=female
SPP (Insurer preference)	1=prefer social ins.
	2=prefer private ins.
	3= neutral
LNP (Insurance preference)	1=prefer life ins.
	2=prefer non-life ins.
	3=neutral

Socio-demographic Characteristics

Classification		No.			%
Classification		Myanmar (N=242)	Vietnam (N=401)	Indonesia (N=488)	Myanmar	Vietnam	Indonesia
Age	20's	70	117	186	28.9	29.2	38.1
	30's	103	165	222	42.6	41.1	45.5
	40's	46	64	65	19.0	16.0	13.3
	50's	20	27	12	8.3	6.7	2.5
	over 60	3	28	3	1.2	7.0	0.6
Gender	Male	86	173	266	35.5	43.1	54.5
Gender	Female	156	228	222	64.5	56.9	45.5
Residence	Rural area	34	68	47	14.0	17.0	9.6
	Small town	99	48	120	40.9	12.0	24.6
	City	109	285	321	45.0	71.1	65.8
Job	Farmer	16	45	7	6.6	11.2	1.4
	Public official	97	37	42	40.1	9.2	8.6
	Company worker	55	176	225	22.7	43.9	46.1
	Self-employed	45	70	147	18.6	17.5	30.1
	Others	29	73	67	12.0	18.2	13.8
Education	Primary school	10	17	2	1.2	4.2	0.4
	Middle School	7	39	15	2.9	9.7	3.1
	High School	14	72	167	5.8	18.0	34.2
	Bachelors	132	237	283	54.5	59.1	58.0
	Masters	73	34	21	30.2	8.5	4.3
	Doctoral	13	2	0	5.4	0.5	0
Marital Status	Married	104	208	316	43.0	51.9	64.8
	Single	129	148	154	53.3	36.9	31.6
	Divorced	2	28	14	0.8	7.0	2.9
	Widowed	7	17	4	2.9	4.2	0.8
Religion	Buddhist	237	156	9	97.9	38.9	1.8
	Hinduist	3	0	5	1.2	0	1.0
	Catholic	2	66	86	0.8	16.5	17.6
	Muslim	0	4	386	0	1.0	79.1
	None	0	175	2	0	43.6	0.4

MNL Results: Insurance Preference

	Myanmar		Vietnam		Indonesia
Independent Variable	Life	Non-life	Life	Non-life	Life	Non-life
Intercept	0.129	−5.198	−3.526	−3.090	−2.414	−1.436
lnINC (Income)	0.098	0.276	0.240	0.068	0.133	−0.170
EDU (Education)	−1.351^*	0.235	0.094	0.093	−0.070	−0.421
FLI (Fin. Literacy)	−0.096	0.349^**	−0.006	0.017	0.256^***	0.302^*
FINT (Fin. Trust)	0.113	0.157	−0.008	0.164	−0.013	0.027
Age	−0.011	0.020	0.051^***	0.020	0.006	0.003
GEN (Gender/Male)	0.178	0.403	−0.113	0.150	0.792^***	0.520
Pseudo R² (Nagelkerke)	0.185		0.087		0.103
−2 Log Likelihood	431.513		739.780		853.183
N	242		401		488

Structure of Survey Questionnaire

Variables	No.	Item Nos.	Measures
Demographic	7	1–7	Multiple choice/short
Income	1	8	Short answer
Religiosity	3	9	Likert 7 scales
Financial literacy	7	11–14	OX, Multiple choice
Financial trust	1	15	Likert 7 scales
Government trust	4	16	Likert 7 scales
Social insurance trust	6	17	Likert 7 scales
Private insurance trust	6	18	Likert 7 scales
Insurance preference	1	21	Multiple choice
Insurer preference	1	22	Multiple choice

Characteristics of Insurers and Insurance Preference

Classification		Myanmar		Vietnam		Indonesia
Classification		Frequency (No.)	(%)	Frequency (No.)	(%)	Frequency (No.)	(%)
Insurer preference (Society/Private)	Social insurance preferred	43	17.8	198	49.4	161	33.0
	Private insurance preferred	82	33.9	71	17.7	83	17.0
	Neutral	117	48.3	132	32.9	244	50.0
	Total	242	100.0	401	100.0	488	100.0
Insurance preference (Life/Non-life)	Life insurance preferred	61	25.2	214	53.4	233	47.7
	Non-life insurance preferred	85	35.1	55	13.7	41	8.4
	Neutral	96	39.7	132	32.9	214	43.9
	Total	242	100.0	401	100.0	488	100.0

Results of Exploratory Factor Analysis

Factor name	Item	Factor No.
Factor name	Item	1	2	3	4	5	6	7
SIT (Social Insurance Trust)	28_3	.209	.793	.101	.075	.240	.016	.207
	28_1	.229	.760	.115	.107	.192	.030	.192
	28_2	.266	.755	.092	.094	.193	.042	.215
	28_4	.209	.750	.141	.038	.224	.043	.231
	28_6	.229	.723	.155	.005	.233	−.017	.232
	28_5	.227	.718	.221	.039	.193	.037	.187
PIT (Private Insurance Trust)	29_3	.379	.290	.054	.106	.720	.024	.115
	29_1	.378	.277	.036	.115	.712	.031	.096
	29_2	.415	.272	.065	.104	.710	.051	.100
	29_4	.399	.245	.050	.119	.702	.016	.123
	29_6	.421	.241	.068	.111	.670	.042	.114
	29_5	.434	.255	.143	.112	.631	.042	.093
REL (Religiosity)	9_1	.033	.042	.085	.216	.034	.936	−.052
	9_3	.025	.032	.080	.210	.046	.923	−.031
	9_2	.020	.031	.115	.274	.031	.894	−.070
GOVT (Government Trust)	27_6	.112	.217	.107	−.028	.083	−.049	.832
	27_5	.038	.154	.046	−.143	.123	−.129	.774
	27_1	.073	.335	.082	.121	.123	−.031	.712
	27_4	.118	.335	.093	.163	.050	.064	.675
Eigenvalue		5.266	4.464	3.905	3.819	3.645	2.717	2.670
Common variance (%)		14.629	12.399	10.847	10.609	10.125	7.548	7.418
Cumulative variance (%)		14.629	27.027	37.874	48.484	58.609	66.157	73.575

Results of Reliability Analysis

Factor name	Item	When removing item, α	Cronbach's α
REL (Religiosity)	9-1	.909	.952
	9-2	.946
	9-3	.935
GOVT (Government Trust)	27-1	.772	.824
	27-4	.798
	27-5	.806
	27-6	.737
SIT (Social Insurance Trust)	28-1	.914	.926
	28-2	.912
	28-3	.908
	28-4	.912
	28-5	.918
	28-6	.914
PIT (Private Insurance Trust)	29-1	.917	.931
	29-2	.914
	29-3	.915
	29-4	.918
	29-5	.923
	29-6	.920

Insurance Premiums in Emerging Asian Markets

Ranking	Country	Life Insurance premium (%)	Non-life Insurance premium (%)	Total premium
2	China	3390,400 (54%)	333,264 (46%)	723,664
10	India	100,185 (74%)	35,773 (26%)	135,958
27	Thailand	14,566 (55%)	12,030 (46%)	26,380
32	Malaysia	14,349 (71%)	7,778 (38%)	20,237
34	Indonesia	10,576 (58%)	5,671 (31%)	18,353
43	Vietnam	6,551 (69%)	2,896 (31%)	9,447
45	Philippines	5,277 (68%)	2,480 (32%)	7,758
	Others	647 (75%)	217 (25%)	864

j_irfc-2025-0008_tab_006

Variable	Construct	Items (Measurement)
REL	Religiosity	Measured on a 7-point Likert scale (1=Strongly Disagree, 7=Strongly Agree) 1. I believe in the existence of God. 2. My religious beliefs are very important in my life. 3. I attend religious services or events regularly (e.g., every week). Sources: Scheve & Stasavage (2005), Noussair et al. (2013), Fabian Huber (2012), World Value Survey (2020)
GOVT	Government Trust	Measured on a 7-point Likert scale (1=Strongly Distrust, 7=Strongly Trust) How much do you trust the following institutions? 1. The Parliament (National Assembly) 2. The Government (Administration) 3. Political Parties 4. Civil Service Sources: World Value Survey (2020)
SIT	Social Insurance Trust	Measured on a 7-point Likert scale (1=Strongly Distrust, 7=Strongly Trust) How much do you trust the following social insurance schemes? 1. Public Pension 2. National Health Insurance 3. Industrial Accident Compensation Insurance 4. Unemployment Insurance 5. Long-term Care Insurance 6. Overall Social Security System Sources: Jung & Oh (2005), Jin (2012)
PIT	Private Insurance Trust	Measured on a 7-point Likert scale (1=Strongly Distrust, 7=Strongly Trust) How much do you trust the following regarding private insurance? 1. Life Insurance Companies 2. Non-life (General) Insurance Companies 3. Foreign Insurance Companies 4. Domestic Insurance Companies 5. Insurance Agents/Solicitors 6. The Insurance Industry in general Sources: Jung & Oh (2005), Jin (2012)
FLI	Financial Literacy	Sum of correct answers (1 point for each correct answer) 1. (Interest) Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have? (More than $102 / Exactly $102 / Less than $102) 2. (Inflation) Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, would you be able to buy: (More / The same / Less) than today? 3. (Risk Diversification) Buying a single company's stock usually provides a safer return than a stock mutual fund. (True / False) 4. (Bond Price) If interest rates rise, what will typically happen to bond prices? (Rise / Fall / Stay the same / No relationship) Sources: Lusardi & Mitchell (2011), Lusardi (2019), Tennyson (2010)

MNL Results: Insurer Preference

	Myanmar		Vietnam		Indonesia
Independent Variable	Social	Private	Social	Private	Social	Private
Intercept	1.973	−5.703	−1.112	−2.446	2.475	−2.951
lnINC (Income)	−0.207	0.338	0.031	0.119	−0.337^*	0.240
REL (Religiosity)	−0.088	0.050	0.003	−0.024	−0.007	−0.047
GOVT (Govt. Trust)	−0.013	0.013	0.008	0.037	0.054^*	0.027
SIT (Social Ins. Trust)	0.005	−0.069^*	−0.008	−0.040	0.017	−0.080^**
PIT (Private Ins. Trust)	−0.007	0.097^**	−0.012	0.042	−0.046	0.096^**
Age	0.020	0.014	0.045^***	0.006	0.003	−0.012
Pseudo R² (Nagelkerke)	0.119		0.074		0.105
−2 Log Likelihood	429.685		788.519		942.601
N	242		401		488

Determinants of Insurance and Insurer Preferences Among Financial Consumers in ASEAN: Evidence from Myanmar, Vietnam, and Indonesia

Figures & Tables

Definition and Classification of Variables

Socio-demographic Characteristics

MNL Results: Insurance Preference

Structure of Survey Questionnaire

Characteristics of Insurers and Insurance Preference

Results of Exploratory Factor Analysis

Results of Reliability Analysis

Insurance Premiums in Emerging Asian Markets

j_irfc-2025-0008_tab_006

MNL Results: Insurer Preference

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