Micro-Impact. Deconstructing the Complex Impact Process of a Simple Microinsurance Product in Indonesia
This paper analyzes the social impact of Payung Keluarga (PK), an obligatory enhanced credit life microinsurance product launched by Allianz in Indonesia in 2006. PK aims to reduce the assumed post-mortem financial crisis of low-asset families.
The paper states that the main consumers of PK were married women petty traders in urban and semi-urban areas. Their husbands were the main bread-winners of the family, and received the insurance payouts. PK therefore benefited the main breadwinner instead of insuring him. Findings include:
- PK did not help to overcome the assumed financial crisis, since such a crisis did not exist in reality;
- Community and family support among low-asset Muslim Indonesians is normally strong enough to cover funeral expenses and provide for the bereft family;
- Beneficiaries used most of the insurance payouts for funeral ceremonies and repayment of informal debt;
- PK contributed to an inflation of funeral costs and promoted a societal shift from equality-seeking balanced reciprocity towards status-seeking general reciprocity.
The study concludes that the impact of microinsurance depends on the cultural, religious, and socio-demographic context. Any microinsurance intervention concerned with social impact should therefore be preceded by a study of the context.
