Application of the Proximacause Principle in Loss Insurance According to the Book of Trade Law and Regulation Number 40 of 2014

Santri, Selvi Harvia; Syafiadi, .; Erlina, .

doi:10.5220/0009128502910294

Cited by 1 publication

(1 citation statement)

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“…Premium is an amount of money given based on a policy agreement by an insurance customer to an insurance company as money to cover a number of losses due to a risk underwriting agreement from an insurance customer to an insurance company [19]. Premium is the price of an insurance product with payment methods varying depending on the type of insurance product.…”

Section: Premium Incomementioning

confidence: 99%

Profitability Determinant Of Insurance Sector in Indonesia

Bangun,

Priyanto

2024

AFS

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Research Aims: This research aims to examine the influence of premium income and claim expenses on the return on equity in life insurance companies registered with the Financial Services Authority (OJK) from 2013 to 2022. Design/methodology/approach: His research uses quantitative research methods with data collection techniques by means of literature research and documentation research, and the results are analyzed by panel data regression analysis techniques. This research takes data from life insurance companies registered with the Financial Services Authority (OJK) that have published their financial reports. Research Findings: There is an observation that premium income has a positive effect on the Return on Equity of insurance companies. ROE reflects how efficiently a company uses equity to generate net income. There are findings that claim expense has a positive influence on the Return on Equity of insurance companies. ROE is calculated as net income divided by shareholders' equity. The higher the claims expense, the lower the net income available to shareholders, and ultimately the lower the ROE. The findings show that premium income and claim expense have a significant influence on an insurance company's Return on Equity. If premium income exceeds claim expense, ROE is likely to increase due to higher net income. However, if claims expense is higher than premium income, ROE will likely decrease due to lower net income. ROE is calculated as net income divided by shareholders' equity. Therefore, ROE is a measure of how efficiently a company uses equity to generate net income. Research Limitations: This research is only limited to secondary data of life insurance companies companies registered with the Financial Services Authority and many companies that do not publish complete annual financial report data. do not publish complete and consecutive annual financial report data during the consecutively during the research period. Limitations in taking variables that are only premium income and claim expense variables used in this study, because researchers only take one of the internal and external factors that are thought to affect return on equity. The return on equity variable in this study can only be explained by 78% by the premium income and claim expense variables, in the sense that there is still 22% part of the dependent variable in this study that can be explained by other independent variables outside of this study. in this study that can be explained by other independent variables outside of this study. this research.

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Section: Premium Incomementioning

confidence: 99%