Contribution of Technology to Insurance in Indonesia

. In recent years, Indonesia has begun to develop its information and communications technology. Along with the development and spread of the use of information and communications technology in everyday life, the need for information, business world, and community responsibility has also increased, including insurance companies. Insurance companies act as a form of risk control by transferring the risk from one party to another. The growth of the insurance industry reflects the expanding need for protection both for health and assets owned. The growing awareness of insurance is inseparable from the influence of people’s rising income and the development of digital technology. This paper investigates factors that affect the insurance variable related to the technology proxy in Indonesia from 2003 to 2015. Time-series data were analyzed using regression modeling with assumption-checking. Mobile user subscriptions, individual Internet users, Information and communications technology (ICT) goods, and ICT services are found to significantly and positively affect the insurance variable. The results indicate that insurance industry policy makers should start developing online premium policies and an online claim system.