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Actuarial Risk Management Practices and Firm Performance: The Mediating Role of E-Service Innovation

Author

Listed:
  • Dwi Widianto

    (Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11530, Indonesia)

  • Muhtosim Arief

    (Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11530, Indonesia)

  • Mohammad Hamsal

    (Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11530, Indonesia)

  • Elidjen Elidjen

    (Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11530, Indonesia
    Business Creation Program, Management Department, Undergraduate Program, Bina Nusantara University, Jakarta 11530, Indonesia)

Abstract

Research on actuarial risk management practices (ARMP) and insurance firm performance has revealed inconsistent results. Therefore, a mediating factor such as innovation is needed to bridge between them. Studies exploring the relationship between ARMP and innovation have been largely qualitative. This study offered a quantitative model focusing on the mediating role of e-service innovation between ARMP and firm performance. The hypothesized relationships were tested using a structural equation model (SEM), with a sample from 98 Indonesian insurance companies and WarpPLS 7.0 as the analytical tool. The results indicated that ARMP significantly influenced e-service innovation but was insignificant for firm performance. Furthermore, the findings highlighted the significant role of e-service innovation in insurance firm performance, which implied that e-service innovation acts as a mediator in the relationship between ARMP and firm performance. The practical application of the research findings makes them directly relevant and beneficial to the insurance industry, especially in Indonesia.

Suggested Citation

  • Dwi Widianto & Muhtosim Arief & Mohammad Hamsal & Elidjen Elidjen, 2024. "Actuarial Risk Management Practices and Firm Performance: The Mediating Role of E-Service Innovation," JRFM, MDPI, vol. 17(5), pages 1-15, May.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:5:p:204-:d:1394050
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    References listed on IDEAS

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