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The Model of Insurance Companies Risk Based Capital

Author

Listed:
  • Haris Djayadi

    (Kemenko PKM Office, Indonesia)

  • Henricus Judi Adrianto

    (Universitas Persada Indonesia YAI, Jakarta, Indonesia,)

  • Dini Arifian

    (STIE La Tansa Mashiro, Indonesia)

Abstract

Purpose of this research is to find out effect of Investment, Premium Revenue, Claims, and Profit Company partially and together on Risk Based Capital of the loss insurance company. Population of this research are Insurance Companies registered in the Financial Services Authority and publish complete financial statements both on print media and corporate website period of 2013-2017 amounted 16 companies. Based on purposive sampling, there are 10 companies which fulfilled the sample requirements. The data used is the annual financial statements (audited). This research uses panel data regression and hypothesis testing using Eviews 8 application. Based on this research result Investment has positive relation but not significant to Risk Based Capital while Premium Revenue, Claims, and Profit Company have insignificant negative relation to Risk Based Capital. Independent variables of Investment, Premium Revenue, Claims, and Profit Company are simultaneously unable to effect the dependent variable Risk Based Capital significantly. The ability of independent variables of Investment, Premium Revenue, Claims, and Profit Company to explaining the dependent variable Risk Based Capital as parameter is 10.9%, while the rest equal 89.1% explained by other causes outside research model.

Suggested Citation

  • Haris Djayadi & Henricus Judi Adrianto & Dini Arifian, 2018. "The Model of Insurance Companies Risk Based Capital," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 8(6), pages 61-64.
    • Handle: RePEc:eco:journ1:2018-06-9
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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