Antecedent of risk-based capital of public non-life insurance companies in Indonesia

The performance of the insurance service industry has an impact on the Indonesian economy, therefore insurance companies must be able to maintain their sustainability by maintaining a level of financial health, generally represented by risk-based capital (RBC). The purpose of this research is to test and analyse whether the macro indicators such as customer price index (CPI), gross domestic product (GDP), central bank interest rate (BIR); and micro indicators such as investment performance, loss ratio and total assets are antecedent of RBC. This quantitative research used nine samples of public non-life insurance companies in Indonesia and the secondary data were collected from annual financial reports from 2008-2019 and macroeconomic data were collected from Statistic Bureau Centre, then data panel regression analysis was conducted to test the research hypotheses. The results show that loss ratio, total assets and the movement of GDP are antecedent of the RBC. Total assets has relative big impact (positive) on RBC and loss ratio has relative small impact (positive) on RBC, on the other hand GDP has a relative medium impact (negative) on RBC. In other words, two micro indicators and one macro indicator have impacts on RBC.