Microinsurance for fishermen: Addressing risk perception and participation challenges

Fishermen are highly vulnerable to economic and occupational risks, yet participation in microinsurance remains low. This study analyzes the effects of financial literacy, saving motives, and risk perception on fishermen's interest in microinsurance using a quantitative approach with SEM-PLS on 165 fishermen in North Jakarta. The results show that financial literacy (β = 0.100; p = 0.156) and saving motives (β = 0.079; p = 0.275) do not significantly influence interest. In contrast, risk perception has a positive and significant effect (β = 0.354; p < 0.001). The model explains 19.6% of the variance in interest (R2 = 0.196). Descriptive results indicate that 75.76% of respondents have sufficient financial literacy, that saving motives are very high (83.29%), that risk perception is high (77.77%), and that interest in microinsurance is high (77.62%). However, only 9.09% of respondents have used microinsurance. These findings suggest that interest in microinsurance is primarily driven by risk perception rather than financial capability or saving behavior. Therefore, strengthening risk awareness through targeted education is essential to increase fishermen's participation in microinsurance programs.