IDEAS home Printed from https://ideas.repec.org/a/vrs/irfinc/v10y2025i2p38-52n1004.html

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

Author

Listed:
  • Lim Soyoung

    (Assistant Professor, School of Commerce, Waseda University)

  • Jung Hongjoo

    (Professor, Business School, Sungkyunkwan University)

Abstract

This study examines the determinants of insurance and insurer preferences among financial consumers in three emerging ASEAN markets—Myanmar, Vietnam, and Indonesia. Using 1,131 survey responses and a multinomial logistic regression framework, we analyze how socioeconomic, demographic, and behavioral factors shape consumers’ choices between social versus private insurance and life versus non-life insurance. The findings reveal significant heterogeneity across the three countries. In Indonesia, income and government trust significantly influence social insurance preference, while trust in private insurers increases the likelihood of choosing private insurance in both Myanmar and Indonesia. Age is a key determinant of social and life insurance preferences in Vietnam. Financial literacy consistently increases preference for life and non-life insurance in Indonesia and for non-life insurance in Myanmar. Education negatively affects life insurance preference in Myanmar, reflecting structural characteristics of early-stage insurance markets. These results highlight that insurance demand in ASEAN is shaped not only by economic capacity but also by country-specific institutional, demographic, and behavioral factors. The study provides actionable implications for policymakers and insurers seeking to expand coverage and strengthen consumer engagement in developing ASEAN markets.

Suggested Citation

  • Lim Soyoung & Jung Hongjoo, 2025. "Determinants of Insurance and Insurer Preferences Among Financial Consumers in ASEAN: Evidence from Myanmar, Vietnam, and Indonesia," International Review of Financial Consumers, Sciendo, vol. 10(2), pages 38-52.
    • Handle: RePEc:vrs:irfinc:v:10:y:2025:i:2:p:38-52:n:1004
    DOI: 10.2478/irfc-2025-0008
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/irfc-2025-0008
    Download Restriction: no
    File URL: https://libkey.io/10.2478/irfc-2025-0008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Subir Sen & S Madheswaran, 2013. "Regional determinants of life insurance consumption: evidence from selected Asian economies," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(2), pages 86-103, November.
    2. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2008. "Alfred Marshall Lecture Social Capital as Good Culture," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 295-320, 04-05.
    3. Marco Arena, 2008. "Does Insurance Market Activity Promote Economic Growth? A Cross‐Country Study for Industrialized and Developing Countries," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(4), pages 921-946, December.
    4. J. Francois Outreville, 2014. "Risk Aversion, Risk Behavior, and Demand for Insurance: A Survey," Journal of Insurance Issues, Western Risk and Insurance Association, vol. 37(2), pages 158-186.
    5. Park, Sojung Carol & Lemaire, Jean, 2012. "The Impact of Culture on the Demand for Non-Life Insurance," ASTIN Bulletin, Cambridge University Press, vol. 42(2), pages 501-527, November.
    6. Liu, Tsai-Ching & Chen, Chin-Shyan, 2002. "An analysis of private health insurance purchasing decisions with national health insurance in Taiwan," Social Science & Medicine, Elsevier, vol. 55(5), pages 755-774, September.
    7. Christophe Courbage & Christina Nicolas, 2021. "Trust in insurance: The importance of experiences," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 88(2), pages 263-291, June.
    8. Tam Trinh & Xuan Nguyen & Pasquale Sgro, 2016. "Determinants of non-life insurance expenditure in developed and developing countries: an empirical investigation," Applied Economics, Taylor & Francis Journals, vol. 48(58), pages 5639-5653, December.
    9. Dragos, Simona Laura & Dragos, Cristian Mihai & Muresan, Gabriela Mihaela, 2020. "From intention to decision in purchasing life insurance and private pensions: different effects of knowledge and behavioural factors," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    10. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    11. Luigi Guiso, 2012. "Trust & Insurance Markets," EIEF Working Papers Series 1207, Einaudi Institute for Economics and Finance (EIEF), revised Jul 2012.
    12. Thorsten Beck & Ian Webb, 2003. "Economic, Demographic, and Institutional Determinants of Life Insurance Consumption across Countries," The World Bank Economic Review, World Bank, vol. 17(1), pages 51-88, June.
    13. Lin, Chaonan & Hsiao, Yu-Jen & Yeh, Cheng-Yung, 2017. "Financial literacy, financial advisors, and information sources on demand for life insurance," Pacific-Basin Finance Journal, Elsevier, vol. 43(C), pages 218-237.
    14. Charles Noussair & Stefan Trautmann & Gijs Kuilen & Nathanael Vellekoop, 2013. "Risk aversion and religion," Journal of Risk and Uncertainty, Springer, vol. 47(2), pages 165-183, October.
    15. Peter Haiss & Kjell Sümegi, 2008. "The relationship between insurance and economic growth in Europe: a theoretical and empirical analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 35(4), pages 405-431, September.
    16. Luigi Guiso, 2012. "Trust and Insurance Markets," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 41(1-2), pages 1-26, February.
    17. J. Francois Outreville, 2018. "Culture and Life Insurance Ownership: Is It an Issue?," Journal of Insurance Issues, Western Risk and Insurance Association, vol. 41(2), pages 168-192.
    18. Giovanni Millo & Gaetano Carmeci, 2015. "A Subregional Panel Data Analysis of Life Insurance Consumption in Italy," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 82(2), pages 317-340, June.
    19. Amarjit Gill & Harvinder S. Mand & Nahum Biger & Neil Mathur, 2018. "Influence of religious beliefs and spirituality on decision to insure," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 13(5), pages 780-800, November.
    20. Annamaria Lusardi, 2019. "Financial literacy and the need for financial education: evidence and implications," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 155(1), pages 1-8, December.
    21. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2007. "Social Capital as Good Culture," Economics Working Papers ECO2007/57, European University Institute.
    22. Neil Esho & Anatoly Kirievsky & Damian Ward & Ralf Zurbruegg, 2004. "Law and the Determinants of Property‐Casualty Insurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 71(2), pages 265-283, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mamadou Bah & Nelson Abila, 2024. "Institutional determinants of insurance penetration in Africa," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 49(1), pages 138-179, January.
    2. Trinh, Cong Tam & Chao, Chi-Chur & Ho, Nhut Quang, 2023. "Private health insurance consumption and public health-care provision in OECD countries: Impact of culture, finance, and the pandemic," The North American Journal of Economics and Finance, Elsevier, vol. 64(C).
    3. Trinh, Cong Tam & Nguyen, Xuan & Sgro, Pasquale & Pham, Cong S., 2020. "Culture, financial crisis and the demand for property, accident and health insurance in the OECD countries," Economic Modelling, Elsevier, vol. 93(C), pages 480-498.
    4. Lee, Hui Shan & Cheng, Fan Fah & Chong, Shyue Chuan & Sia, Bik Kai, 2018. "Influence of Macroeconomics Factors and Legal Stability to the Insurance Growth in the ASEAN-5 Countries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(2), pages 219-229.
    5. Cong Tam Trinh & Minh-Tri Ha & Nhut Quang Ho & Tho Alang, 2023. "National culture, public health spending and life insurance consumption: an international comparison," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    6. Eglantina Zyka & Elena Myftaraj (Tomori), 2014. "Factors affecting the insurance sector development: Evidence from Albania," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 17(51), pages 171-188, March.
    7. J. François Outreville, 2015. "The Relationship Between Relative Risk Aversion And The Level Of Education: A Survey And Implications For The Demand For Life Insurance," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 97-111, February.
    8. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran & Bennett, Sara E., 2020. "Unveiling the causal relationships among banking competition, stock and insurance market development, and economic growth in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 74-87.
    9. Chang, Chi-Hung, 2018. "The dynamic linkage between insurance and banking activities: An analysis on insurance sector assets," Journal of Multinational Financial Management, Elsevier, vol. 46(C), pages 36-50.
    10. MUKHERJEE Abhijit & GHOSH Amlan, 2022. "Role Of Economic Factors In Property Liability Insurance Consumption: Empirically Examining The Indian Market," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(1), pages 112-129, April.
    11. J. François Outreville, 2011. "The relationship between insurance growth and economic development - 80 empirical papers for a review of the literature," ICER Working Papers 12-2011, ICER - International Centre for Economic Research.
    12. Rudra P. Pradhan & Saurav Dash & Rana Pratap Maradana & Manju Jayakumar & Kunal Gaurav, 2017. "Insurance market density and economic growth in Eurozone countries: the granger causality approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 3(1), pages 1-24, December.
    13. Victor Curtis Lartey & Phyllis Asorh Oteng & Amos Kwasi Amofa & Isaac Quaye & Koffi Dumor, 2025. "Determinants of Non-life Insurance Demand in Ghana: A Comparative Analysis of Regularization Algorithms," SAGE Open, , vol. 15(4), pages 21582440251, October.
    14. Pradhan, Rudra P. & Arvin, Mak B. & Norman, Neville R., 2015. "Insurance development and the finance-growth nexus: Evidence from 34 OECD countries," Journal of Multinational Financial Management, Elsevier, vol. 31(C), pages 1-22.
    15. Milijana Novovic Buric & Ljiljana Kascelan & Vladimir Kascelan, 2023. "Economic and demographic determinants of premium reserve in Western Balkan countries during and after the crisis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 1116-1136, January.
    16. J. François Outreville, 2013. "The Relationship Between Insurance and Economic Development: 85 Empirical Papers for a Review of the Literature," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 16(1), pages 71-122, March.
    17. Akhter, Waheed & Pappas, Vasileios & Khan, Saad Ullah, 2017. "A comparison of Islamic and conventional insurance demand: Worldwide evidence during the Global Financial Crisis," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1401-1412.
    18. Patricia Born & Douglas Bujakowski, 2022. "Economic transition and insurance market development: evidence from post-communist European countries," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 47(1), pages 201-237, March.
    19. Cong Tam Trinh & Xuan Nguyen & Pasquale Sgro, 2021. "Culture and the demand for non‐life insurance: Empirical evidences from middle‐income and high‐income economies," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(3), pages 431-458, July.
    20. Gabriela Mihaela Mure?an & Cristian Mihai Dragos & Codru?a Mare & Simona Laura Dragos & Alexandra Pintea, 2021. "Socio-Economic and Macro-Financial Determinants and Spatial Effects on European Private Health Insurance Markets," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(56), pages 290-290, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:irfinc:v:10:y:2025:i:2:p:38-52:n:1004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.