From readiness to excellence: The role of digital enablement and innovation in life insurance performance

Abstract

With digital transformation becoming a key focus for businesses globally, the Indonesian life insurance industry faces increasing pressure to adopt digital strategies to remain competitive. This study examines the relationships between technology adoption readiness, digital enablement, and life insurance performance and explores the moderating effect of innovation capability. A quantitative approach was employed, gathering data through a structured questionnaire distributed to senior executives from 43 life insurance companies in Indonesia. Using Structural Equation Modeling (SEM) with SmartPLS, the analysis reveals that digital enablement significantly enhances life insurance performance, driven by the readiness of companies to adopt technology. However, the moderating role of innovation capability was found to be less impactful, suggesting that innovation contributes to performance but does not substantially influence the relationship between digital enablement and life insurance performance. These findings provide valuable insights for life insurance companies in Indonesia, highlighting the importance of investing in technology adoption and digital integration while continuing to develop innovation capabilities to stay competitive in a rapidly evolving digital landscape.

Keywords

• digital enablement
• digital transformation
• innovation capability
• life insurance performance
• technology adoption readiness