Insurance Companies In Indonesia Research Articles

Efficiency Analysis of Life Insurance Companies in Indonesia and Malaysia

This study focuses on measuring the performance of life insurance companies in Indonesia and Malaysia. Input oriented Data Envelopment Analysis (DEA) uses panel data to extract the efficiency score of 5 life insurance companies from Indonesia and 5 life insurance companies from Malaysia for the year of 2015-2019. DEA-based Malmquist Total Factor Productivity (TFP) Index used to measure the efficiency change along the study period. This study utilizes asset and operating expenses as input variables, as for output variables, this study utilizes premium and investment income. Based on an efficiency score computed by DEA, most of the life insurance companies in both countries perform efficiently during the study period. However, life insurance companies in Indonesia still perform more efficiently than Malaysian life insurance companies. The results of the Malmquist TFP Index for life insurance companies in both countries show that there is 2.5% improvement in technical efficiency change, 1.5% deterioration in technology efficiency change, 0.6% improvement in pure efficiency change, 1.9% improvement on scale efficiency change, and 0.9% increase in TFP change. It shows that the main reason for TFP increased is due to improvement of technical efficiency change.

Assessment of the Success of Digital Signature and Stamp Implementation in the National Economic Rescue (PEN) Application System at Credit Insurance Companies in Indonesia

Utilization technology in sector industry non-bank finance in Indonesia is increasingly widespread, including in the guarantee credit of state-owned companies. The company uses System Application Guarantee for transaction guarantee credit with produce Certificate Guarantee as proof of approval. The request can be active in the context of the COVID-19 pandemic and the Indonesian government's efforts to implement the company's National Economic Recovery (PEN) program guarantee. Implementation feature sign hand and digital stamp on the System Application PEN underwriting allows provision of document Guarantee Certificate in the form of legal and supportive softcopy restrictions contact physique during a pandemic. Study This aim is to measure the successful implementation features of the success models by Delone and McLean and analyze the connection between variables in research. The benefits cover assessment, evaluation, and strategy-based results evaluation using feature sign hand and digital stamp. Delone and McLean's original model was modified to eliminate variable intention to use. The research was conducted by analyzing the results of questionnaires from 108 officials' user systems throughout Indonesia. Process of data analysis using the method of Partial Least Square with device SMARTPLS software. Research results prove that quality systems will influence the satisfaction of future users who will be influential to benefit clean from the feature sign hand and digital stamp on the System Application PEN Guarante.

Indonesia Insurance Corporate Governance: A Literature Review

The aim of this research is to present and evaluate corporate governance framework for insurance companies in Indonesia based on previous researches related to corporate governance and The Indonesia Financial Services Authority Regulation. We evaluate concerning to governance objectives that include protecting shareholder interests, enhancing shareholder value, ensuring accountability, managing risk, promoting ethical behavior, transparency and disclosure, balancing interests, strategic decision-making, compliance with laws and regulations, efficient operations, long-term sustainability, stakeholder engagement, adapting to change, creating a positive reputation, and facilitating investment. We discuss the corporate governance framework for insurance companies in Indonesia based on the Indonesia Financial Services Authority regulation that states governance structure, corporate governance code, self-assessment & governance report, governance process and corporate governance principles to meet governance objectives. Although every year all insurance companies report corporate governance, but some companies have been stopped by the Authority. This raises research problems for the future relating to why insurance companies that have complied with corporate governance provisions have been stopped by the Authority.

The influence of capital structure and operational performance on financial performance with governance and financial risk as mediation in Insurance Companies in Indonesia

This study examines the influence of capital structure and operational performance on financial performance, with governance and financial risk as mediators. The sam- ple for this research comprises insurance companies listed on the Indonesia Stock Exchange in 2013-2021 with a total of 72 firm-year observations. The data used are secondary data obtained from annual and financial reports accessed via idx.co.id. The independent variables are capital structure, measured using the Debt Equity Ratio (DER), and operational performance, measured using liquidity. The mediating variable is the governance variable, measured by the independent board of directors (DKI), and financial risk is measured using Risk Based Capital (RBC). The depen- dent variable in this study uses financial performance as measured by Return On Assets (ROA). The results prove the following: (1) Capital structure has a positive and significant effect on financial performance. (2). Operational performance has a negative and significant effect on financial performance. (3). Capital structure had a positive and significant effect on DKI. (4) Operational performance has a significant negative effect on financial risk. (5) DKI does not mediate the influence of capital structure on financial performance. (6) Financial risk fully mediates the influence of operational performance on financial performance. (7). DKI has a negative and significant effect on financial performance. (8). Financial risk has a negative and significant effect on financial performance.

Pengaruh Debt To Equity Ratio Terhadap Return On Equity Pada Perusahaan Asuransi Syariah Di Indonesia

This research aims to determine the influence of the Debt to Equity Ratio on Return on Equity in Sharia Insurance Companies in Indonesia. This research consists of the variable Debt to Equity Ratio (independent variable), and Return On Equity as the dependent variable. The data analyzed were the company's annual financial reports for the period 2019 to 2023. The research results showed that the test results showed that the Debt to Equity Ratio = 1.325 with a significant value for the Debt to Equity Ratio variable 0.000 < 0.05. So the research hypothesis can be accepted, namely that there is a significant influence between Debt to Equity Ratio on Return On Equity, partially.

Pentingnya Kualitas Pelayanan dalam Anuitas dengan Tinjauan Financial Highlight Asuransi di PT. Asuransi Umum Bumiputera Muda 1967 Cabang Medan

The Importance of Service Quality in Annuities with a Review of Financial Highlights of Insurance at PT. Bumida General Insurance 1967. This research focuses on the importance of service quality in the annuity products offered by PT. Bumida General Insurance 1967. By combining qualitative and quantitative approaches, this study evaluates how service quality affects customer perceptions and company financial performance. The findings show that superior service quality plays an important role in increasing customer confidence and strengthening the company's financial position in the insurance sector. The data analysis technique used is the data triangulation technique, namely testing similar data from various sources. Based on the results of these observations, it appears that the quality of customer service at Bumida General Insurance 1967 Medan Insurance branch is quite good. This is demonstrated by the absence of complaints from customers who remain and do not move to other service companies or insurance companies. Bumida 1967 continues to survive in world competition even though many other insurance companies have emerged that are no less large. Currently, Asuransu Bumida 1967 is still one of the largest insurance companies in Indonesia. However, the quality of service at the Bumida Bersama Life Insurance Medan branch must continue to be improved so that the positive image that has been created can be maintained.

Legal Culture in the Management of Life Insurance Companies in Indonesia

In the last ten years, people have been made uneasy by various cases of life insurance companies that have failed to pay. Moreover, the involvement of prominent companies in these cases reduced public trust in them. In these cases, the influence of legal culture is apparent in the management of life insurance companies. Therefore, this study aims to investigate the factors that caused the life insurance companies to fail to pay, the legal culture underlying the management of these companies and the efforts that must be made to improve this culture. The research method employs normative legal research, supported by empirical legal research. The factors causing life insurance companies to default consist of fraud in the company’s financial statements, unreasonably high-interest rates on unit-linked insurance products, and a lack of optimal application of risk management in life insurance companies. The legal culture of their management has not developed in a better direction, leading to an inability to fulfill their obligations. Examples of steps to improve the legal culture include conducting education and training for life insurance company managers, making remuneration policies to encourage behavior that follows the prudential principle, and creating guidelines for managers on ethical business values and conduct.
 Keywords: legal culture, life insurance companies

The Impact Of Insurtech On The Insurance Business Model In Indonesia

In Indonesia, the integration of InsurTech into the business process is beginning to manifest, with emerging companies harnessing technology across various aspects, including customer acquisition, underwriting, claims, billing, and customer service. Furthermore, established companies are incorporating technology into specific facets of their business processes to improve overall efficiency and accuracy. Thus, it is intriguing to delve deeper to the phenomenon to understand what factors are driving the growth of InsurTech there, how it spurs business model innovation, what gaps exist between the country’s current insurance business models and the models required for development, and what capabilities existing insurance companies need to fill in these gaps. This is a qualitative study that interviewed 10 participants, which are C-level executives in ten major national and multinational insurance companies in Indonesia. The finding revealed that efficiency gains, achieved through streamlined processes and cost reduction, drive significant investments in InsurTech. Regulatory challenges and technological advancements shape the trajectory of InsurTech. The direct insurer consumer relationship facilitated by InsurTech enhances speed, ease, and transparency in insurance processes. However, challenges such as underdeveloped business models and resistance to innovation exist. Successful InsurTech integration requires a holistic approach, combining creative thinking, supportive leadership, and industry collaboration. InsurTech not only enhances customer experiences but also holds promise for sustainable business growth through operational optimisation in the Indonesian insurance sector.

Influence of GDP and Interest Rate on the Return on Assets of Sharia Life Insurance Companies in Indonesia During the COVID-19 Pandemic

This paper examines the relationship between the effect of GDP and Interest Rate on the Return on Assets of Islamic insurance companies in Indonesia during the COVID-19 pandemic, using the period 2020 to 2022. Multiple linear regression is used to test the degree of relationship between macroeconomic factors and company performance. The results of the study show that GDP and Interest Rate have no significant effect on the ROA of Islamic life insurance companies in Indonesia. There are three reasons provided, the sharia insurance industry has different characteristics from other industries, the social behavior factor during the COVID-19 pandemic, and there are also other factors that affect the ROA of sharia insurance companies. The findings contribute to the operation of Islamic insurance in Indonesia for regulators, investors, and policyholders.

Analisis Pengaruh Penggunaan Asuransi Contractor All Risk, Bunga Bank, dan Bagi Hasil Terhadap Pengalihan Potensi Risiko pada Proyek Konstruksi

Implementation of a construction project will give rise to various kinds of risks during its work, so risk management is needed to reduce and transfer risks that will occur during construction project work. One alternative risk transfer to reduce potential risks in construction projects is to use Contractor All Risk Insurance (CAR), which is one of the engineering insurance products issued by general insurance companies, especially by general insurance companies in Indonesia. This research aims to test the influence of the variables Use of CAR Insurance (X1), Bank Interest (X2), and Profit Sharing (X3) on Reducing Potential Risks on Construction Projects (Y3). The research locations are 20 construction service companies in Jakarta, which use CAR insurance. The population of this research is employees who work at these 20 companies. The number of samples was 220 respondents. The sampling technique is purposive sampling. The primary data collection technique is through survey techniques with a 1-5 Likert Scale questionnaire as the research instrument. Secondary data collection techniques using document and literature studies. The data analysis technique uses Structural Equation Modeling (SEM), with Lisrel 8.80 software. The research results show that the three independent variables, namely Use of CAR Insurance (X1), Bank Interest (X2), and Profit Sharing (X3) partially have a positive and significant effect on Reducing Potential Risks in Construction Projects (Y3).

Enhancing Mutual Assistance: An Analysis of Sharia Insurance Fund Separation in Comparison to Conventional Insurance

Separation of funds in sharia insurance adheres to the main principle of mutual assistance (ta'awun), which means that each participant must have the intention to help each other. The application of the concept of separation of sharia insurance funds emphasizes the position of tabarru funds which may only be used for the needs of policyholders (ta'awun), while funds originating from the shareholder component (ujrah) can be used for the needs of insurance companies. This study aims to determine the concept of Islamic insurance in the separation of funds which is an advantage compared to conventional insurance. A qualitative method was chosen in this research, which used sharia insurance companies in Indonesia as the research object. Research findings state that the separation of sharia insurance funds is divided into tabaru (mutual assistance) funds and ujrah funds which is in accordance with the concept of fund theory. Efforts to invest higher levels have been made by the company, but the low investment returns mean that the profit sharing between participants and the company is lower, while investment losses will still be borne by the participants. Besides that, low claims on sharia insurance mean that companies do not need to use their reserve funds to cover the high level of tabarru fund claims.

A Structural Equation Model of Governing Factors Influencing the Development of Sustainable Insurance Product in the Future

Designing and proposing sustainable insurance programs to insurance companies that run their businesses in Indonesia have been one of the insurers’ approaches to creating more stable and certain industry climate. Moreover, the Indonesian Financial Services Authority or OJK encourages financial services sector actors in creating, developing sustainable product innovations, and supporting financing of production activities that can create economic growth, social justice and environmental quality improvement. We conduct survey and analyze whether insurance companies in Indonesia are interested in implementing sustainable finance in insurance industry and developing sustainable insurance products. Participants’ responses depict insurance firms’ paradigm on sustainable insurance. In this study a framework is proposed for governing factors that impact the development of sustainable insurance product in the future such as the level of knowledge, readiness, and current sustainable insurance product development. To clarify the relationships, a structural equation model is utilized to examine the framework fit with the hypothesis for the four latent variables of this study. Acceptable goodness of fit is established for validity of the measurement model. The test of validity is accepted for the structural model in this study. The SEM results conclude that an insurer’s knowledge of sustainable finance principles affects the insurance firm’s readiness to implement sustainable insurance. Subsequently, the insurer’s readiness affects its current level of sustainable insurance product development. Eventually, the insurer’s knowledge and current development in sustainable insurance products have a positive effect on the insurance firm’s willingness to develop sustainable insurance products in the future. Thus, this study provides valuable information about factors affecting the development of sustainable insurance products in the future as a key for a successful implementation of sustainable finance in Indonesian insurance industry.

Financial Technology in Moderating Influence Firm Size, Risk-Based Capital, Current Ratio, and Premium Growth Ratio to Financial Performance (Study on Sharia Insurance Companies in Indonesia in the period 2017-2021)

Financial Technology in Moderating Influence Firm Size, Risk-Based Capital, Current Ratio, and Premium Growth Ratio to Financial Performance (Study on Sharia Insurance Companies in Indonesia in the period 2017-2021)

Comparative Analysis of the Efficiency of the Top Ten Conventional Joint Venture Life Insurance Companies in Indonesia in the Period Before and During the Covid-19 Pandemic Using the Data Envelopment Analysis Method

This study aims to capture the efficiency level of industry players in conventional joint venture life insurance companies in Indonesia before and during the Covid-19 pandemic. Efficiency is related to the level of success of an activity being assessed in terms of the ratio between amounts of the output generated and the input used to generate the outputs in the activity. Efficiency can be measured using the Data Envelopment Analysis (DEA) method, which is a non-parametric frontier approach that uses mathematical programming with 2 (two) assumptions, namely Constant Return to Scale (CRS) and Variable Return to Scale (VRS). The variables used are input and output variables, wherein the input variables include total debt, labor costs, claims expenses, investment composition of stocks, bonds, and securities issued by the government of the Republic of Indonesia (RI). The output variables used are premium income and investment returns. The type of data used is secondary data. The data collection technique used is library research. The objects used as samples were top 10 (ten) conventional joint venture life insurance companies in terms of revenues with the data obtained from the financial reports and annual reports of each company for the period between 2015 and 2021. The analysis show that investment portfolio performances derived from the company strategy acts as the main efficiency determinant in the industry.

PENGARUH PENDAPATAN PREMI DAN HASIL INVESTASI TERHADAP LABA PADA PERUSAHAAN ASURANSI JIWA SYARIAH

This study aims to examine how much influence the independent variables, namely premium income and investment returns, have on the dependent variable, namely profits at Islamic life insurance companies in Indonesia that are registered with the Financial Services Authority (OJK) for the period 2017 – 2021. Quantitative methods are used in this study with multiple linear regression data analysis techniques and processed using SPSS version 26. This study data collection technique in this research uses purposive sampling and the secondary data used are published and audited financial reports. The samples used were 7 sharia life insurance companies for research. The results prove that premium income affects profits positively and significantly, while investment returns affect profits negatively and insignificantly. However, together premium income and investment returns affect profits significantly.
 Keywords: premium income, investment return, and profit.

GOOD CORPORATE GOVERNANCE (GCG) TERHADAP SOLVABILITAS PERUSAHAAN ASURANSI JIWA SYARIAH DI INDONESIA

The purpose of this study was to analyze the influence of Good Corporate Governance (GCG) and the Return on Investment Ratio to Solvency in Islamic Life Insurance Companies in Indonesia. This study uses a quantitative approach using secondary data. The population of this study is all Sharia Life Insurance Companies in Indonesia with the 2017-2021 research period. The sampling technique used purposive sampling method. Samples that met the criteria were 18 Sharia Life Insurance from 23 Sharia Life Insurance in Indonesia. The model used as an analysis tool is multiple regression analysis. Data processing in this study uses SPSS 25.0 tools. The results of this study indicate that simultaneously the variables of the Board of Commissioners, Board of Directors and Investment Return Ratio have a positive and significant effect on Solvency (RBC) on Sharia Life Insurance in Indonesia, while partially the Board of Commissioners has a negative and significant effect on Solvability (RBC), Board of Directors has a negative and significant effect on Solvability (RBC) and the Return on Investment Ratio has no effect on Solvability (RBC).

Underwriting Results, Investment Results and Risk Based Capital on Profit of General Insurance Companies in Indonesia

An insurance business is a business that provides services in risk re-insurance. This study aims to analyze Premium Income, Underwriting Results, Investment Returns and Risk Based Capital on Profits of General Insurance Companies in Indonesia. The method used in this study is documentation techniques through OJK reports and financial reports for 8 insurance companies in Indonesia from 2016 to 2020 so that the population is 40 data. The sampling technique is saturated sampling, where the entire population is taken as a sample, so that the total sample is 40 data. The results of the study show that investment returns and risk based capital have a positive and significant effect on earnings, while premium income and underwriting results have no significant effect on profits.

Analisis Pengaruh Hasil Investasi Terhadap Laba Perusahaan Asuransi Jiwa Syariah di Indonesia

This study aims to determine the effect of investment returns on profits of Islamic life insurance companies in Indonesia. This study consists of the investment return variable as the independent variable and company profit as the dependent variable. The data analyzed are the company's annual financial statements for the period 2017 to 2022. The results showed that investment returns show a value at an alpha coefficient of 5% (t-stat = 2.498 > 1.667) and prob. 0.015 <0.05. So based on the research results show that the hypothesis is accepted, namely investment results have a significant effect on net income at PT. Sharia Life Insurance Period 2017-2022.

The Effect of Fraud Diamond on Financial Statements of Insurance Companies in Indonesia

The Jiwasraya corruption scandal and related cases revealed significant financial distress, opportunities for fraud, rationalization of actions, and the ability to manipulate financial statements, emphasizing the importance of research and awareness in addressing fraudulent financial statements in the insurance industry. This study aims to analyze the impact of the fraud diamond, composed of pressure, opportunity, capability, and rationalization, on corporate financial statement fraud. This study is crucial due to the pressing issue of fraud incidents at several state-owned insurance firms in recent years. An insurance company serves as the sample for this research, using STATA to utilize 55 financial statement observations from 2016-2020, with a research duration of 5 years. The study's findings were not able to establish that the fraud diamond, composed of pressure, opportunity, capability, and rationalization, affects financial statement fraud. This contradicts the results of previous examinations and marks the first instance of rejection of a hypothesis established through regression modeling in this field of study. The occurrence of financial statement fraud may vary among sectors based on the results of this study. This study contributes to understanding fraudulent financial reporting in the insurance industry, emphasizing the importance of pressure and opportunity as key factors.Â

Analisis Portfolio Concentration dan Insurance Leverage terhadap Kemampulabaan Perusahaan Asuransi yang Tercatat di Bei Tahun 2009-2021 dengan Mediasi Struktur Modal


 
 
 
 
 
 
 
 
 
 
 
 
 Among the various types of risks, the probability that most often occurs is operational risk, including insurance companies in Indonesia. This study aims to analyze and examine the effect of operational risk based on portfolio concentration and insurance leverage on the profitability of insurance companies with capital structure moderation factors. Data was obtained from the Indonesia Stock Exchange between 2009-2021, using the Structural Equation Model and Path Analysis method approaches. The first result of the study is that capital structure has a negative influence on the profitability of insurance companies, but not significantly. Second, the positive relationship between operational risk to capital structure, or capital structure is also positively influenced by operational risk significantly. Third, the capital structure mediates negatively the effect of operational risk on the profitability of insurance companies.