Abstract
The Covid -19 pandemic is a massive disaster, impacting various sectors of the economy including the Islamic principle insurance sector. The government through the Financial Services Authority (OJK) in dealing with these problems has issued a stimulus policy so that the Islamic principle insurance sector is still able to maintain the level of solvency and risk based capital is maintained. The purpose of this study is to determine the influence of the Stimulus Policy and the level of Risk Based Capital on the level of solvency of sharia-based insurance companies during the Covid-19 Pandemic. The method used is descriptive method with a simple statistical approach. The results show: 1. There is a positive influence of the Stimulus Policy on the Solvency Level of the Islamic principle insurance company sector, 2. There is a positive influence on the Level of Risk Based Capital on the Solvency Level of the Islamic Principle Insurance Company sector, 3. There is an influence of the Stimulus Policy and Level of Risk Based Capital on Simultaneous level of solvency in Islamic principle insurance companies. From the research results, it can be concluded that the Stimulus Policy and Risk Based Capital Level that has been set by the regulator is right on target.
Highlights
In addition to negative impact caused by this outbreak it turns out that there are the bright sides
The policy was issued as an effort by the OJK to maintain the performance and stability of the insurance industry amidst the economic downturn due to the Covid-19 pandemic (Otoritas Jasa Keuangan, 2020).According to Riswinandi, as stated in the Circular Letter to LKM (Micro Financial Institutions) management and directors, the OJK policy for LKMs and LKM’s debtors is aimed at reducing the burden on low-income people and micro-scale businesses in paying obligations to LKM and maintaining the sustainability of LKM’s performance
There by, the RBCT framework has pushed the Takaful operators in Malaysia to improve their efficiency and remain competitive in orderto protect the interest of public
Summary
In addition to negative impact caused by this outbreak it turns out that there are the bright sides. Based on the Minister of Finance Regulation No.11 / PMK.010 / 2011 concerning Financial Health in Insurance Business and Reinsurance Business with Sharia Principles In these regulations, sharia general insurance companies must carry out and maintain financial health in terms of tabarru' fund levels according to the minimum required solvency level of the funds required to anticipate the risk of loss that may arise as a result of deviation in the management of assets and / liabilities. Sharia general insurance companies must carry out and maintain financial health in terms of tabarru' fund levels according to the minimum required solvency level of the funds required to anticipate the risk of loss that may arise as a result of deviation in the management of assets and / liabilities To meet these requirements the insurance industry must have a strategy to maintain and increase the solvency of the tabarru'. With the fulfillment of the minimum solvency, the insurance company will get the trust of the participants that the tabarru' fund is able to meet all the risks of possible losses to participants
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