Micro-Impact: Deconstructing the complex impact process of a simple microinsurance product in Indonesia

Mikro-Wirkung: Dekonstruktion der komplexen Auswirkungsprozesse eines einfachen Mikroversicherungsprodukts in Indonesien

  • This thesis analyses the social impact of Payung Keluarga, an obligatory enhanced credit life microinsurance product launched by Allianz in Indonesia in 2006. Payung Keluarga automatically insures micro-borrowers who take out microcredits from microfinance institutions. In case of death, the outstanding credit balance is canceled and the beneficiary receives twice the original loan as additional payout. Payung Keluarga was conceived to ameliorate the assumed post-mortem financial crisis of low-asset families. Through qualitative-explorative field research from 2006 until 2008 I investigated if this developmental intention was realized. It is the first impact analysis on microinsurance in Indonesia. In the research process, I took the position of an observing participant. As operational project leader for Allianz in Indonesia I was virtually doing research on my own work. The resulting challenge to research neutrality is primarily mitigated by the sobering to discerning social impact which was eventually revealed. The majority ofThis thesis analyses the social impact of Payung Keluarga, an obligatory enhanced credit life microinsurance product launched by Allianz in Indonesia in 2006. Payung Keluarga automatically insures micro-borrowers who take out microcredits from microfinance institutions. In case of death, the outstanding credit balance is canceled and the beneficiary receives twice the original loan as additional payout. Payung Keluarga was conceived to ameliorate the assumed post-mortem financial crisis of low-asset families. Through qualitative-explorative field research from 2006 until 2008 I investigated if this developmental intention was realized. It is the first impact analysis on microinsurance in Indonesia. In the research process, I took the position of an observing participant. As operational project leader for Allianz in Indonesia I was virtually doing research on my own work. The resulting challenge to research neutrality is primarily mitigated by the sobering to discerning social impact which was eventually revealed. The majority of insured were married female Muslim petty traders in urban and semi-urban areas around Jakarta. Socio-economically these women stand at the upper end of the low-asset stratum. Their husbands were generally the main bread-winners of the family, and it was mostly them who received the insurance payouts. It could therefore be said that Payung Keluarga benefited the main breadwinner instead of insuring him. The study found that norms of a moral economy are still exerting significant clout on the insured. The moral economy aims at providing “subsistence insurance” for all community members through an intricate collective system of balanced exchanges. The corresponding “premium” is a denouncement of self-interested material asset accumulation. Next to structural reasons, it was this moral restriction that saw the businesses of the women stagnate at low and socially inconspicuous levels. Payung Keluarga did not help to overcome the assumed post-mortem financial crisis. In reality, such crisis did not exist since community and family support among low-asset Muslim Indonesians is normally strong enough to largely provide for the bereft family. This support is driven by the perception of death as a collective risk in the light of the moral economy and hinged on principles of balanced reciprocity. For cultural and religious reasons, the beneficiaries used most of the insurance payouts for funeral ceremonies and repayment of informal debt. With the advent of Payung Keluarga familial post-mortem assistance has been reduced. Funeral costs also seem to have been inflated by the product. It has thereby promoted a long-term societal shift from equality-seeking balanced reciprocity towards status-seeking and socially diversifying general reciprocity. In effect, Payung Keluarga has attacked cooperative social cohesion head-on where it is still strongest in a rapidly modernizing Indonesian society. This discerning and unintended impact of Payung Keluarga is hardly offset by a positive increase in financial literacy among the insured. Furthermore, the effect on “peace of mind” on the insured is ambivalent: while most insured stated to feel safer, some declared to feel less secure with their obligatory coverage for fear of interference with divine predetermination. Its overall developmental impact can be literally described as “micro”. Instead of protecting the status-quo of the family, Payung Keluarga has assumed the role of an actor of social change. Not only because it has changed the funeral pattern of the beneficiaries, but also because it promotes a far-reaching conceptual paradigm shift from balanced reciprocity, which forms a core pillar of the insured’s social structure, towards general reciprocity. The thesis hypothesizes that with sufficient insurance coverage provided, the insured will increasingly opt out of the coercively egalitarian “subsistence insurance” system. Such opt out will allow the insured to pursue a more aggressive economic asset accumulation strategy, particularly in combination with micro-credit. For the individual, this can be seen as a “liberating fortune” that would induce more women to grow their businesses to significant sizes. In parallel, it would deal a blow to cooperative social cohesion. I propose to call this the “double fortune / double blow” dilemma of microfinance. Although this thesis is exemplary, some of its findings can be generalized: The impact of microinsurance is highly dependent on cultural, religious and socio-demographic context. Any microinsurance intervention concerned with social impact should be preceded by a thick contextualization going beyond the usual demand assessments. In turn, microinsurance likewise impacts context as an actor of ambivalent social change. The complex influence of context and the role of microinsurance as an actor of social change have so far been hardly discussed in the development discourse.show moreshow less

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Metadaten
Author:Martin Hintz
URN:urn:nbn:de:bvb:739-opus-20389
Advisor:Susanne Schroeter
Document Type:Doctoral Thesis
Language:English
Year of Completion:2009
Date of Publication (online):2010/07/22
Publishing Institution:Universität Passau
Granting Institution:Universität Passau, Philosophische Fakultät
Date of final exam:2010/07/22
Release Date:2010/07/22
Tag:Mikroversicherung; Wirkungsanalyse
Indonesia; credit life; impact; microinsurance
GND Keyword:Versicherung; Entwicklungshilfe; Mikrofinanzierung; Allianz Aktiengesellschaft; Indonesien; Armut
Institutes:Philosophische Fakultät / Philosophische Fakultät / Südostasienkunde
Dewey Decimal Classification:0 Informatik, Informationswissenschaft, allgemeine Werke / 00 Informatik, Wissen, Systeme / 000 Informatik, Informationswissenschaft, allgemeine Werke
open_access (DINI-Set):open_access
Licence (German):License LogoStandardbedingung laut Einverständniserklärung