Effect of Micro and Macroeconomic Variables on Performance of Islamic Life Insurance in Southeast Asia

Abstract

This study aims to determine the effect of gross contribution income, investment income and macroeconomic variables consisting of GDP, inflation and exchange rates on the growth of assets of Islamic life insurance companies in the Southeast Asian region. This research is a quantitative research with associative type. The analysis method used is panel data regression analysis with the help of E-views 12 software. The required data consists of company financial statements published through each company's website and World Bank Group data. The study was conducted on sharia life insurance during the 2017-2021 period with a sample of 33 companies. The results showed that partial contribution had a positive effect on asset growth, while GDP and exchange rates had a negative effect on asset growth, furthermore investment income and inflation did not affect the asset growth of Islamic life insurance companies in Southeast Asia. Simultaneously, all independent variables contributed 47% to the growth of Islamic life insurance company assets in Southeast Asia. The rest (53%) were influenced by other variables not addressed in the study.