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Journal : ETIKONOMI

Does the National Health Insurance Program Affect Life Insurance Demand in Indonesia? Rapi, Kristio; Priyarsono, Dominicus Savio; Jahroh, Siti; Bakhtiar, Toni
ETIKONOMI Vol. 25 No. 1 (2026)
Publisher : Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15408/etk.v25i1.50403

Abstract

Research Originality:  This research pioneers a macro-institutional approach to life insurance demand by empirically proving a definitive crowding-out effect induced by Indonesia's universal healthcare mandate. Research objectives: To investigate the dynamic impact of the state-mandated JKN program and national income on private LID in Indonesia. Research methods: This study utilizes a Vector Error Correction Model (VECM) and structural break analysis on annual data from 2002 to 2022 to rigorously capture regime shifts, short-run frictions, and long-run equilibria. Empirical result: The findings reveal a definitive crowding-out effect: the JKN mandate and rising compulsory insurance penetration significantly depress private LID, whereas income maintains a significant positive elasticity in the long run. Furthermore, structural break tests confirm a fundamental, permanent shift in consumer purchasing behavior post-2014, coinciding with the introduction of the JKN program. Implications: Policymakers must orchestrate a regulatory environment that protects universal healthcare while actively sustaining the development of the private life insurance market. Insurers must innovate beyond state-overlapping benefits by developing investment-linked products and optimizing Coordination of Benefits (CoB) frameworks. JEL Classification: D12, G22, G28, I13, I18
Co-Authors A.A. Ketut Agung Cahyawan W Abdullah, Asaduddin Achmad Amiruddin Achmad Fadillah Agus Maulana Ahmad Ridho Ahmad Rifai Ahmad Rifai Ahmat Setiabudi Ajeng Siti Anggraeni Aji Hermawan Akimi Fujimoto Alhamnovanda, Syakura Alwi Salam Makarim Amelia Utami Geraldine Mandagi Amzul Rifin Andika, Ridho Erfan Anggraini Sukmawati Anita Primaswari Widhiani Annetta Gunawan Annisa Falimantik Apriado, Albert Arie Widyastuti Arief Daryanto Arief Daryanto Arief Muhammad Sigit Arif Ardiawan Arif Dzulfikar Arif Imam Suroso Arista, Galih Arkeman , Yandra Arry Ekananta Aruddy Asep Taryana Astina Astina Aulia Ramadhan, Muhammad Bella Ganjar Priscila Ganjar Burhanuddin Umar Achmad Chasanah, Alfa Cindy Rianti Priadi Cita Nabila Thabrani Dominicus Savio Priyarsono Eka Nurjati Ekananta , Arry Elfrida Ratnawati Etriya Etriya Euggelin, Meisyielin Fachrysa Halik, Rizky Ariesty Fadhila Akmaliyah Fadhila Hukmi Fadila Jzuqynova Burhani Fadila Jzuqynova Burhani Fariyanti, Anna Fauji Yamin Febriantina Dewi Febrianto H Masigi Fratama, Radha Niska Gultom, Lamretta H Masigi, Febrianto Handewi P. Saliem Harianto Harianto Harianto Harianto Harmini Haryono, Adi Heny Kuswanti Suwarsinah Herawati Herawati Ichwal Irawadi Idqan Fahmi Ilma Alyani, Ilma Imam Teguh Saptono Imam Teguh Saptono Indrawan, Dikky Indrawan, Raden Dikky Intan Adhitya Rosmasari Irawadi, Ichwal Irawan Wibisonya Jahroh, Muhammad Rifqi Janita Meliala Janita S. Meliala Jemmy Rinaldi JEMMY RINALDI Juliandara, Luthpiyah Juniar Atmakusuma Juwita, Riskina Kristiurman Jaya Mendrofa Kuntadi, Yahya Agung Kurniawan, Hary Larasati, Hasna Lestari, Yulia Setia Lilian Danil Lilik Noor Yuliati Lukman M. Baga M. Syamsul Maarif M. Yogi Riyantama Isjoni Mangkudilaga, Erwin Taufik Krisnadi Marzuki, Ferry Fardiansyah Maulani Barkah Shaliha Ma’arif, M. Syamsul Meilina Pudjiani Moch. Hadi Santoso Monicha Septya Harni Monicha Septya Harni Muhamad Iqbal Muhamad Randy Wiguna Semesta Muhamad Ridho Syaffendi Muhamad Ridho Syaffendi Muhammad Akmal Ikramudin Muhammad Arsyad Muhammad Aulia Ramadhan Muhammad Faizurrohman Muhammad Sigit, Arief Mukhamad Najib Mukti Ali, Mochammad Musa Hubeis Nasruloh, Mochamad Nadif Ni Made Windy Widyastuti Purnamasari Nimmi Zulbainarni Nunung Kusnadi Nur Retri Dwihapsari, Wingkie Nurjati, Eka Ono Suparno Palijama, Arnelia Paramitha, Dyah Permana, Sandi Popong Nurhayati Pratiwi, Chairani Putri Pritjahjono Purnomo, Lorio Purwanto, Budi Puspita, Jeni Rachmani, Nizza Nadya Rahmana, Adhitya Rahmatika, Rizka Astari Ramadyanto, Widodo Rapi, Kristio Ratna Winandi Ratna Winandi Retnaningsih Riansyah Rainal Purnama Rita Nurmalina Rizal Syarief Rizal Syarief Rizawati Rizky Lutfi Suprabowo Robinsar Jogi Y Manullang Rosdwianty, Sintya Rosdwianty, Sintya Rosita Noviana Rusiana Rusiana Sabila Mumtaz Khandari Safira Fathin Safitri, Laras Sirly Salix Fini Maris Sardolian Simbolon Sari Narulita Savio Priyarsono, Dominicus Setiadi Djohar Setiadi Johar Setiawati, Nanik Dewi Setyawati, Ika Sigit, Arief Muhammad Siti Helmyati Sitio, Rike Suci Ramadhani, Suci Sufrin Hannan Suharno Suhendi Sukarsih, Yayuk Suprabowo, Rizky Lutfi Suprabowo, Rizky Lutfi Suprehatin Suprehatin Syarah Nurul Amaliah Syaukat, Fadhilla Izzaty Taslim, Luriana Teguh Saptono, Imam Titis Wicaksono Tobing, Tasya Amanda Toni Bakhtiar Tri Hastuti, Yohana Triadi, Tasya Meira Trias Andati Trias Andati Ujang Sumarwan Ultimarchya, Debra Uray Irzandi Wibawa, Rafki Chandra Wibisonya, Irawan Widodo Ramadyanto Widodo Ramadyanto Wijaya, Pantra Winandi, Ratna Yahya Agung Kuntadi Yamin, Fauji Yandra Arkeman Yanti N. Muflikh Yohana Tri Hastuti Yudha Heryawan Asnawi Yudi Yudistira Yudistira, Yudi Yulia Setia Lestari Yusuf Iskandar Zahran, Muhammad Balya Rafa Zenal Asikin