Purchase Intention to Adopt InsurTech Products: An Investigation of Integrated Marketing Communication and Insurance Literacy

InsurTech (insurance technology) has emerged as a significant innovation in the insurance industry, offering a new strategy to optimize business models. The penetration of InsurTech in Indonesia remains relatively low compared to other Southeast Asian countries. Therefore, this study aimed to investigate the factors influencing purchase intention of InsurTech products by exploring the roles of social media marketing, electronic word-of-mouth (e-WoM), brand equity, personal selling, and insurance literacy. To achieve this objective, a questionnaire was distributed to 270 Indonesian customers who actively followed insurance companies' social media accounts and used InsurTech products. Data analysis was conducted using variance-based structural equation modeling with SmartPLS software. The results showed social media marketing and e-WoM positively and significantly influenced brand equity. Personal selling and insurance literacy also had similar influence on the purchase intention of InsurTech products. However, insurance literacy did not have a direct significant effect on purchase intention. This study made a valuable contribution to insurance industry marketing communications by providing insights into the implementation of integrated marketing strategies and the impact on InsurTech products sales. The results emphasized the importance of engagement-driven and culturally relevant marketing strategies over traditional digital advertisements for InsurTech firms in Indonesia to achieve success.