Scarcity of life insurance protection for consumer loans for retirement age: An analysis of supply and demand imbalances in the Indonesian life insurance industry

This research is motivated by the increasing distribution of consumer loans to retirees by the banking sector in Indonesia, but the availability of adequate life insurance protection does not match it. The retired group is classified as high risk due to age and health factors, making it difficult to obtain life insurance protection from insurance companies. This study aims to identify the factors that cause the scarcity of life insurance protection for retirees' credit, as well as analyze the influence of claims risk, capital adequacy, and reinsurance support on this scarcity. The research method uses an explanatory quantitative approach with surveys of insurance companies and financial institutions, as well as mediation analysis (moral hazard) and moderation (fraud and risk management capacity). The results of the study show that supply-demand imbalances, high claims ratios, limited capital, and weak reinsurance support are the main factors causing the shortage. The role of moral hazard and fraud also increases the risk of a scarcity of protection. This study concludes that collaboration is important between insurance companies, banks, and regulators to create an inclusive and sustainable life insurance protection model for the retiree segment.