Abstract
This research has purposes to learn further about the impact of reinsurance rates, loan interest and fee-based income towards premium rates on credit life insurance. The unit of analysis was 50 credit life insurance policy holders at PT Indosurya Life throughout 2018. The independent variables that used in this research are reinsurance rates, loan interest and fee based income. While the dependent variable is premium rate on credit life insurance. The sample collected method was taken by saturated sampling. Researchers took the entire population as a sample where the number of samples used were 50 policy holders from credit life insurance which used premium rates and types of effective loan interest for 40 years of age with 5 years of insurance period. The analytical method used was multiple regression analysis and hypothesis test which is done by t-test. And according to the rdata analysis result, loan interest and fee-based income had a positive and significant affect towards credit life insurance's premium rates. Meanwhile, the reinsurance rate variable did not related to credit life insurance's premium rate. It is very recommended to PT Indosurya Life to increase the premium rate on its credit life insurance, so that will increase its Fee Based Income aswell.
Highlights
According to Djaelani (2014) who stated that the number of non-bank financial industry players, especially insurance companies has a low percentage of 15% compared to other companies such as financial institutions that reach 29% and retirement funds around 28% and non-bank financial industry support services at 27%, as it shown in Figure 1 below: Available Online: https://dinastipub.org/DIJMS
Theoretical Framework According to the theoretical research which mentioned above and strengthened by previous research, it is suspected that the factors that affect premium rates on credit life insurance namely loan interest, bank's fee-based income and reinsurance rates
3) Fee Based Income towards Credit Life Insurance's Premium Rates According to Kasmir (2014) Fee based income is the profit obtained from transactions provided in other bank services or other than spread based
Summary
According to Djaelani (2014) who stated that the number of non-bank financial industry players, especially insurance companies has a low percentage of 15% compared to other companies such as financial institutions that reach 29% and retirement funds around 28% and non-bank financial industry support services at 27%, as it shown in Figure 1 below: Available Online: https://dinastipub.org/DIJMS. This research has attempts to analyzed the impact of loan interest rates, fee-based income and reinsurance rates on credit life insurance premium rates. The analysis unit that used in this research is the premium rate for credit life insurance that issued from PT Indosurya Life throughout 2018. According to the data from the Indonesian Life Insurance Association (2018), there is only 6.6 percent of Indonesia's population has a life insurance policy. This shows that the potential for life insurance in the future is still very large because there is still 93.4 percent of the market that has not been touched (Djaelani (2014). Things related to life insurance are interesting things to put as an research
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