THE INFLUENCE OF FINANCIAL LITERACY, PRODUCT INNOVATION, DIGITAL PROMOTION, AND INVESTOR RISK ATTITUDE ON LIFE INSURANCE DECISIONS A SYSTEMATIC LITERATURE REVIEW

Abstract

The penetration of life insurance in Indonesia has been declining since 2018 despite the increasing need for financial protection. This study aims to systematically review the factors that influence life insurance decisions, particularly financial literacy, product innovation, digital promotion, and investor risk attitudes. The Systematic Literature Review (SLR) method was applied with the PRISMA 2020 guidelines through article searches in Scopus, Web of Science, and Google Scholar for the 2020-2025 period. Selection using strict inclusion and exclusion criteria resulted in 29 articles from an initial pool of approximately 1,200 publications. The synthesis results show that financial literacy and product innovation consistently positively influence life insurance decisions. Digital promotion not only increases interest in insurance but also affects investors’ risk attitudes. The investor risk attitude variable plays a dual role, acting as both a direct determinant and a partial mediator in the relationship between the variables. These findings confirm the relevance of the Consumer Behavior Model (Howard-Sheth and Kotler) as a theoretical foundation, while also highlighting the research gap in integrating these four variables into a single empirical model. This study provides a conceptual framework and practical recommendations for the life insurance industry and regulators to enhance financial literacy, encourage product innovation, and optimize digital promotion to strengthen public decision-making regarding life insurance.