IDEAS home Printed from https://ideas.repec.org/a/aoj/ijsaam/v8y2024i2p575-586id7056.html
   My bibliography  Save this article

Ownership and Solvency of (Re)Insurance Companies: An Indonesian Climate-Based Insurance Study

Author

Listed:
  • Etikah Karyani

  • Rivan Dwi Aghnitama

Abstract

Despite the urgency of COVID-19, insurance companies are facing a slower-moving global crisis, namely climate change. This paper aims to investigate how corporate ownership affects the solvency of (re)insurance companies. It also analyses how climate-based insurance products, and the COVID-19 pandemic period differentiate these effects. The quantitative approach uses company accounting data throughout 2016-2022 and solvency is measured by risk-based capital (RBC). The findings show that for climate change-based (re)insurance companies, the larger the foreign-owned company, the higher the RBC level. Meanwhile, there is no difference in the effect of government and non-government owned insurance companies on their RBC. Another finding found that foreign ownership has a significant effect on the RBC of general insurance companies during the COVID-19 pandemic, while there is no relationship between the two during normal conditions. This research is expected to encourage the development and sustainability of climate change-based insurance, as well as input for financial regulators.

Suggested Citation

  • Etikah Karyani & Rivan Dwi Aghnitama, 2024. "Ownership and Solvency of (Re)Insurance Companies: An Indonesian Climate-Based Insurance Study," Indonesian Journal of Sustainability Accounting and Management, Asian Online Journal Publishing Group, vol. 8(2), pages 575-586.
    • Handle: RePEc:aoj:ijsaam:v:8:y:2024:i:2:p:575-586:id:7056
    as

    Download full text from publisher

    File URL: https://www.asianonlinejournals.com/index.php/ijsam/article/view/7056/3085
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aoj:ijsaam:v:8:y:2024:i:2:p:575-586:id:7056. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Lim (email available below). General contact details of provider: https://www.asianonlinejournals.com/index.php/ijsam/about/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.