Can You Still Trust Insurance Workers? Unmasking Unethical Practices in Indonesia’s Insurance Industry

Sri Yusriani; Endi Rekarti; Rifi Hamdani Sitohang; Iwan Setiyawan Prambudi; Viola Kinari Afransa

doi:10.47747/icbem.v2i2.2559

Authors

Sri Yusriani Universiti Sains Malaysia
Endi Rekarti Universitas Terbuka
Rifi Hamdani Sitohang Universitas Terbuka
Iwan Setiyawan Prambudi Universitas Terbuka
Viola Kinari Afransa Universitas Padjadjaran

DOI:

https://doi.org/10.47747/icbem.v2i2.2559

Abstract

The insurance industry plays a pivotal role in fostering economic stability and protecting against uncertainties. However, its reputation is often tainted by unethical practices within its workforce, ranging from manipulative sales tactics to broken promises. This empirical study examines the prevalence and impact of unethical behavior in Indonesia’s insurance sector, focusing on agents, human resource managers, and other professionals. Through qualitative analysis, incorporating interviews with 11 customers who reported negative experiences, this research uncovers patterns of misconduct that erode trust and hinder industry growth. Findings reveal deceptive practices such as misleading policy terms and exploitative sales techniques, which undermine consumer confidence and obstruct the sector’s alignment with global sustainability goals. The study emphasizes the need for urgent ethical reforms, robust regulatory frameworks, and targeted behavioral training programs to rebuild trust and realign the industry with its critical societal and economic roles.

Keywords : Unethical Practices, Insurance Industry, Customer Trust, Ethical Reforms, Indonesia, Sustainability, Sales Behavior

Author Biographies

Sri Yusriani, Universiti Sains Malaysia

Miss Sri Yusriani Syamsuri is the leader of the alumni association (FORKOMPROM!) and a lecturer in the Postgraduate Studies program at the Indonesian Open University, specializing in Communication Science and Human Resources Management. She successfully defended her master's thesis in January 2024 as the top alumna and is now beginning her PhD research program at USM, Malaysia.

Professionally, she has excelled in supply chain management and the HRM division at FK Distribution Denmark and has also contributed to ICRC Denmark. Known for her skills in writing and public speaking, Yusriani has received many awards and has actively mentored more than 80 authors in scientific writing, demonstrating her commitment to sharing knowledge and serving the community. She is also a leader of student and alumni organizations.

Yusriani's educational background includes completing high school at SMU YKPP 1 Komperta Plaju Palembang in 2001, studying Geography at Padang State University, and Arabic Language Education at the Indonesian Education University from 2002 to 2005. She also pursued foreign language studies, studying Polish at Jagiellonian University in Krakow from 2010 to 2012. Sri Yusriani has been recognized as the best moderator and presenter at several international conferences and has served as a reviewer for multiple journals. Since 2022, she has been attending the Danish language school 'Sprogskoler' in Billund, Denmark.

Outside of her professional and academic career, Yusriani has been recognized for her achievements in English speech and Islamic short story writing competitions in Indonesia. Along with her research colleagues, she won second place in the master's thesis competition at the 14th IEOM (International Conference on Industrial Engineering and Operations Management) in Dubai, UAE, in February 2024, third-best paper at the 6th ISBEST 2023, Best Moderator at ICBEM 2023, and was awarded Best Presenter at ISC-BEAM UNJ in June 2024. Additionally, she won the Best Paper award in the Digital Muslim Review Islamic Studies Journal at UIN Banten in 2024, and her team received the Best Paper award in HRM at Telkom University SCBTII in July 2024 in Bandung. Yusriani won best paper in Doctoral Dissertation Awards and Master Thesis Awards in Asia Pasific IEOM, Tokyo in September 2024 with her research partners, Dr. Shine Pintor Siolemba Patiro and Dr. Muji Gunarto. In September 2024 'till March 2025, She also has been selected to join WESEP training course program provided by EU ErasmusPlus Project in Luxembourg. She also won the Best Paper Award for her research at ICHESMET 2024 and with teamwork in Humanities track, and Most outstanding Best Presenter Award in that International Conference, held at Newton International College, Kuala Lumpur, in December 2024.

https://orcid.org/0009-0000-8576-1949

https://www.researchgate.net/profile/Sri-Yusriani

Endi Rekarti, Universitas Terbuka

Dr. Endi Rekarti, S.E., M.S.M.

SPs Universitas Terbuka

Jalan Cabe Raya, Pondok Cabe, Pamulang,

Tangerang Selatan 15437, Banten – Indonesia

endirekarti@ecampus.ut.ac.id

Doctor with research interest in Entrepreneurship, Marketing Science, Organization, Strategic Management. Dr. Endi Rekarti is a senior lecturer and the main mentor for FORKOMPROMI, a platform for communication and creativity within the MM Program, where students and alumni collaborate at the Open University Postgraduate School.

https://orcid.org/0000-0003-1366-7384

https://www.researchgate.net/profile/Endi-Rekarti

Rifi Hamdani Sitohang, Universitas Terbuka

AKP. Rifi Hamdani Sitohang, S.Sos, an M.M. candidate at the Postgraduate School of Universitas Terbuka, serves in the Tanjung Pinang Police Department. He enjoys conducting research and is particularly interested in studies on Persons with Work-Life Balance (pwLB), human resource development, self-development strategies, and organizational growth.

Iwan Setiyawan Prambudi, Universitas Terbuka

Iwan Setiyawan Prambudi is a postgraduate student at Universitas Terbuka with over 24 years of professional experience at the same institution. After graduating from Jakarta Senior High School No. 62, he pursued a bachelor's degree in History at STMIK Muhammadiyah (2006–2010) and is just finished a master's degree in Human Resources Management Universitas Terbuka..

He is currently serving as the Head of the Administration and Marketing Sub-Section at Ternate Open University, North Maluku Province. Iwan is deeply interested in education and enjoys sharing knowledge in the field of Human Resources, particularly in teaching within the Human Resources study program.

https://orcid.org/0009-0000-5250-9106

Viola Kinari Afransa, Universitas Padjadjaran

Viola Kinari Afransa is student of Department of Faculty of Cultural Sciences, German Literature, Universitas Padjadjaran, West Java Indonesia

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