COMPETITION ANALYSIS OF THE PUBLIC INSURANCE INDUSTRY IN INDONESIA

Nabila Natasha

doi:10.35760/eb.2022.v27i2.5145

COMPETITION ANALYSIS OF THE PUBLIC INSURANCE INDUSTRY IN INDONESIA

Nabila Natasha
School of Business IPB University
Indonesia

DOI: http://dx.doi.org/10.35760/eb.2022.v27i2.5145

Abstract

This study aims to analyze the general insurance industry competition in Indonesia. The research method uses a qualitative descriptive approach. This research was conducted at one of the general insurance companies in Indonesia. Data collection techniques were carried out by interview and questionnaire methods. Determination of research respondents using an expert sampling technique. The analytical approach used is Porter’s five forces analysis developed by Michael Porter. The analysis results show that all five variables of Porter’s power affect the general insurance industry. The variable threat of new entrants has a powerful influence on the general insurance industry. To win the competition in the industry, insurance companies can develop existing products or new products according to the needs of consumers. Companies can also build employee capabilities to minimize the role of brokers in the business.

Keywords

competitiveness; competitiveness industry; general insurance; porter five forces

References

Adriana, D., & Sunitiyoso, Y. (2013). Developing a differentation strategy of a captive insurance companies case study of PT XYZ. Indonesia Journal of Business Administration (IJBA), 2(4), 396-403.

Babuna, P., Yang, X., Gyilbag, A., Awudi, D, A., Ngmenbelle, D., & Bian, D. (2020). The impact of COVID-19 on the insurance industry. International Journal of Environmental Research and Public Health, 17(5766), 1-14.

Badan Pusat Statistik. (2019). Jumlah perusahaan asuransi dan perusahaan penunjang asuransi, 2017-2019. Retrieved from https://www.bps.go.id/indicator/13/1080/1/jumlah-perusahaan-asuransi-dan-perusahaan-penunjang-asuransi.html.

Badan Pusat Statistik. (2021). Ekonomi Indonesia triwulan I-2021 turun 0,74 persen. Retrieved from https://www.bps.go.id/pressrelease/2021/05/05/1812/ekonomi-indonesia-triwulan-i-2021-turun-0-74-persen--y-on-y-.html.

Dobbs, M, E. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32-45.

Farrell, M. (2020). How is coronavirus affecting the insurance industry. Retrieved from https://www.coronavirusandtheeconomy.com/question/how-coronavirus-affecting-insurance-industry.

Garelli, S. (2012). IMD world competitiveness yearbook. Retrieved from https://www.imd.org/.

Glen, S. (2015). Purposive sampling (deliberate sampling). Retrieved from https://www.statisticshowto.com/purposive-sampling/.

Guntara, D. (2016). Asuransi dan ketentuan-ketentuan hukum yang mengaturnya. JUSTITUSI: Jurnal Ilmu Hukum, 1(1), 29-46.

Haque, A., Mohona, N,T., Sultana, S., & Kulsum, U. (2021). The impact of COVID-19 on the insurance industry of Bangladesh. Indian Journal of Finance and Banking 6(1), 73-88.

Manuel, E, G. (2016). The five competitive forces of the insurance and pension funds industry for the Angolan case. Arabian J Bus Manag Review, 6(6), 1-5.

Otoritas Jasa Keuangan. (2020). Survei nasional literasi dan inklusi keuangan 2019. Retrieved from https://www.ojk.go.id/id/berita-dan-kegiatan/publikasi/Pages/Survei-Nasional-Literasi-dan-Inklusi-Keuangan-2019.aspx.

Parvathi, V., & Lalitha, C. (2021). Impact of COVID-19 pandemic on the Indian insurance sector. Perspectives on Business Management & Economics, 4(2021), 60-65.

Paunescu C.M. (2013). Challenges of entering the business market: the pre-entry knowledge and experience. Management & Marketing, 8(1), 63-78.

Porter, M, E. (1980). Competitive strategy: techniques for analyzing industries and competitors. New York: Free Press.

Porter, M, E. (1993). Keunggulan bersaing: menciptakan dan mempertahankan kinerja unggul. Jakarta: Erlangga.

Porter, M, E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 68(3), 79-91.

Pulawska, K. (2020). Impact of the COVID-19 pandemic on insurance companies in Europe-first signal. Retrieved from: doi:10.2139/ssrn.3708992.

Sigalas, C. (2015). Competitive advantage: the known unknown concept. Management Decision, 53(9), 2004-2016.

Srivastava, D., Shah, H., & Talha, M. (2006). Determinants of competitiveness in Indian public sector companies: an empirical study. Competitiveness Review, 16(3), 212-222.

Rianto, N. (2012). Pengantar ekonomi syariah. Bandung: CV Pustaka Setia.

Robson, J. (2015). General insurance marketing: a review and future research agenda. Journal of Financial Services Marketing, 20(4), 282-291.

Prajapati, U., Lukman M., B., & Setiadi, D. (2019). Strategy for performance improvement at building division of PT Hutama Karya (Persero) in conditions of construction building business competition. RJOAS, 8(92), 227-206.

Wandebori, H. (2019). Proposed business strategy improvement through service quality gap model to increase membership coverage of BPJS Ketenagakerjaan. Jurnal Manajemen Teori dan Terapan, 12(3), 189-206.

Wang, Y., Zhang, D., Wang, X., & Fu, Q. (2020). How does COVID-19 affect China's insurance market. Emerging Markets Finance and Trade, 56(10), 2350-2362.

World Health Organization. (2020). WHO coronavirus disease (COVID-19) dashboard. Retrieved from: https://covid19.who.int/.

Worku, A., & Mersha, D. (2020). The effect of COVID-19 on insurance industry in Ethiophia. HAJBE Special Issue 1, 39-44.

Yiannakopoulos, Y., Magoutas, A., & Chountalas, P. (2017). Strategic competition analysis and group mapping: the case of the Greek insurance industry. EAST-WEST Journal of Economics and Business, 20(1), 41-65.

Yudistira, G. (2019). Jumlah perusahaan asuransi stagnan, ini penyebabnya. Retrieved from: https://keuangan.kontan.co.id/news/jumlah-perusahaan-asuransi-stagnan-ini-penyebabnya.