The Effect of Risk Based Capital Value, Premium Growth, Level of Efficiency and Management Performance on the Profitability of Islamic Insurance Companies in Indonesia in 2016 - 2021
Luthfi Akmal Muzakki (a*), Sri Herianingrum (b), Sulistya Rusgianto (b)

Universitas Airlangga

Abstract

This study aims to determine the value of risk based capital, premium growth, level of efficiency and management performance on the profitability of Islamic insurance companies in Indonesia for the 2016-2021 period partially and simultaneously. In this study using quantitative methods with panel data regression technique method. Sources of data are taken from the financial reports of each sharia life or general insurance and also the financial statistics reports of OJK. For life insurance or sharia general sampling, there are 20 samples. Simultaneously the risk-based capital value variables, premium growth variables, efficiency level variables, and management performance variables significantly affect profitability through measuring ROE of Islamic insurance companies in Indonesia in 2016-2021. Partially, the risk-based capital variable and the efficiency level variable have a significant positive effect on the ROE of Islamic insurance companies, while the premium growth variable has no positive effect, and management performance does not have a negative effect on the profitability of Islamic insurance companies. With the results of this data processing, sharia insurance companies in Indonesia can be expected to be able to manage customer funds very effectively.

Keywords: Risk Based Capital Value- Premium Growth- Efficiency Level- Management Performance- Profitability

Topic: Islamic social finance