Asset Growth In Sharia Insurance: Macroeconomic and Internal Factors of Sharia Insurance Companies in Indonesia

Hilmy Baroroh

doi:10.24235/amwal.v13i2.9018

Abstract

Sharia insurance presents an alternative system in insurance operation with risk sharing in ta'awun (cooperative). Knowledge and insight into reality and trends are used to assess and decide sharia insurance operationalization policies. This study analyzed the growth of Islamic insurance company assets in Indonesia in 2016-2020. The data is sourced from the Sharia Financial Statement Statistics published by OJK and Bank Indonesia Statistics from 2016 - 2020 with multiple linear regression analysis methods. This research aims to find out the influence of internal variables and external variables on the assets growth of sharia insurance in Indonesia. In this study, there are two variables, namely dependent variables and independent variables. Dependent variables are the assets growth of sharia insurance in Indonesia (PERASSET), and independent variables, namely GDP (GDP), inflation (INF), contribution (KONB), investment (INVEST), and operating costs (BOPERATE). The results of this study GDP, Inflation, Contributes, and Investment affects Sharia insurance's assets growth. While operating costs do not affect the assets growth of sharia insurance companies. Keywords: Sharia Insurance, Asset Growth, GDP, Inflation, Contribution, Investment, Operating Costs

Highlights

Non-bank financial institutions become one of the connecting elements of the economy and function as a source of funding that supports economic activities other than banking
This study shows that three variables have a significant positive effect on asset growth: growth in return on investment, contribution, and profitability
From this research, it can be known that from several factors that affect the growth of assets of sharia insurance companies, four factors affect asset growth, namely GDP, inflation, contribution, investment

Summary

Introduction

Non-bank financial institutions become one of the connecting elements of the economy and function as a source of funding that supports economic activities other than banking. Like other Non-Bank Financial Institutions, the growth of insurance assets is increasingly advanced and has a hand to build the economy and society by minimizing risk and becoming an intermediator of funds in the form of investments (Rusydiana & Nugroho, 2017). Insurance provides a different performance for the household or business sector to prosper them. The superior services offered by insurance companies are related to efforts to minimize the risk of loss of life, property, business, and others. Insurance companies support both individuals and businesses to mitigate risk in every business and get profits but, with higher risk (Khan Atiquzzafa & Uzma Noree, 2014)

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Conclusion