Volume: 19 Issue-01 (January-June) 2024

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RELEVANCE OF SCHUMPETERIAN SHOCKS IN DIGITAL LITERACY TO INSURTECH ADOPTION FOR POLICE AND MILITARY FORCES’ MEMBER WELL-BEING

ABSTRACT

The purpose of this study is to analyze the effects of the disruptive effect (Schumpeterian shock's metaphor) in technological innovation on the well-being of the police and military forces by assessing their digital literacy in adopting Insurtech. This study is intended to observe consumers' behavior, particularly their well-being limited to pension ages (so-called Elderly Well-Being). An empirical study analyzes a sample of respondents using a Structural Equation Modeling - Partial Least Square approach, combined with secondary data to enrich the analysis. The authors utilize 600 samples of police and military personnel of the pension age throughout Indonesia. The result demonstrated that digital literacy has a significant influence on well-being and further, when it is mediated by Insurtech Adoption, the effect is improved significantly more than double impact. This study that focuses on the pension ages of military or police forces has found that they are favorably impacted by Schumpeterian Shock because the majority of them are already digitally literate in anticipating dynamic capability to improve the well-being of the elderly. This study carries implications for businesses, signaling that it is opportune to extend efforts beyond operational efficiency to create new value for customers, particularly in areas related to well-being.

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