Stability of insurance efficiency during the Covid-19 pandemic:  A comparative study between Islamic and conventional insurance in Indonesia

Ikhwan, Ihsanul; Rusydiana, Aam Slamet

doi:10.20885/jeki.vol8.iss1.art5

Cited by 6 publications

(10 citation statements)

References 17 publications

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“…A concept in finance called insurance aims to provide security for economic growth or to act as protection against unforeseen loss (Kaffash et al, 2020). Insurance is a tool to minimize risk, whether it be a threat to the firm or a chance for survival, and positively contributes to economic life as a financial intermediary and longterm investment (Ikhwan & Rusydiana, 2022). Malaysia offers a wide variety of insurance products, including life insurance, health insurance, motor insurance, travel insurance, and property insurance.…”

Section: Literature Review Insurance Industry and Life Insurancementioning

confidence: 99%

Lifeguarding the Future: Unveiling the Key Influences on Life Insurance Intent in Johor

Md Sahabi,

Che Hashim,

Yaacob

et al. 2023

IJARBSS

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This study intends to examine the factor that affects customer intention to purchase life insurance in Johor. Insurance price, the demographic of customers, company reputation, and social influence were used as independent variables to examine the impact on the customer intention to purchase life insurance in Johor, dependent variable. The need for life insurance is growing as a result of the rising death rate and life-threatening illnesses in Malaysia. A financial instrument known as life insurance protects the beneficiaries of the insured financially in the case of the insured's death. Although the product is popular, a variety of circumstances may have an impact on a customer's decision to purchase it. This research was conducted using an online questionnaire distributed to a diverse group of respondents regardless of age, gender, race, or ethnicity, who either does not yet have insurance coverage or who does have insurance coverage. A total of 110 respondents answered this survey. SPPS version 29 was used to transform the data from the survey. The research's findings were analyzed using multiple regression analysis. The findings demonstrated that there is a significant influence of insurance price and social influence on the customer's intention to purchase life insurance in Johor.

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Section: Literature Review Insurance Industry and Life Insurancementioning

confidence: 99%

Lifeguarding the Future: Unveiling the Key Influences on Life Insurance Intent in Johor

Md Sahabi,

Che Hashim,

Yaacob

et al. 2023

IJARBSS

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“…Even if the COVID-19 pandemic had a significant impact on financial institutions, including the insurance market, increasing efficiency still remained one of the main objectives of any firm or institution. The study carried out by Ikhwan and Rusydiana (2022) aimed to measure and analyze the efficiency of 70 insurers from 2016 to 2020. Analyzing the results obtained, it can be emphasized that the COVID-19 pandemic had a small effect on the efficiency of the analyzed insurers.…”

Section: Literature Reviewmentioning

confidence: 99%

Measuring and Analyzing the Efficiency of Firms in the Insurance Industry Using DEA Techniques

Vintila

Trucmel

Roman

2022

Journal of Social and Economic Statistics

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The insurance industry has an important role in the economy, being constantly focused on diversifying product portfolios and dispersing risks. Since the uncertainty, the asymmetric information, the current economic and social-political challenges affect the economic performance and competitiveness on the insurance market, it is necessary to focus on the evaluation of the technical efficiency of the players. One of the most complex analytical research tools with increased utility that can be applied to measure the efficiency is the Data Envelopment Analysis (DEA). Our work is designed to analyze the performance of a sample made up of the ten main players in the insurance industry in Romania. Assuming a predefined set of five inputs (total expenses, provisions, average number of employees, total placements and intangible assets) and one output (total income) selected from the firms’ balance sheets, we calculate the efficiency scores with the help of DEA techniques for each year from 2016 to 2020. Our results show that Allianz and City are the most efficient firms regardless of the model type VRS or CRS, while Groupama and Omniasig fail to operate at an optimal level in any of the analyzed periods.

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“…The insurance sector is part of the financial system, which is very important for the economic growth of a country. As part of the financial services sector, the insurance sector has a strategic role in promoting economic stability in the risk management of economic activities (Ikhwan & Rusydiana, 2022). Insurance development is positively correlated with economic growth (Han et al, 2010).…”

Section: Introductionmentioning

confidence: 99%

“…Several studies show that the efficiency of the Islamic insurance industry is better than that of the conventional insurance industry (Ade et al, 2018;Khan & Noreen, 2014;Janjua & Akmal, 2015;Almulhim, 2019), while other studies state the opposite such as (Antonio et al, 2013;Rahman, 2013;Ikhwan & Rusydiana, 2022).…”

Section: Introductionmentioning

confidence: 99%

Takaful and Insurance Efficiency Determinants: Pre and Post Covid-19 Pandemic

Parizi,

Riani

2024

PML

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This study aims to compare the efficiency of the performance of sharia insurance companies (full fledge) and conventional insurance operating in Indonesia using two stages of data envelopment analysis (DEA) for the period before and during Covid-19 (2018 - 2021). The first stage is to measure efficiency using the non-parametric DEA approach and the second stage uses the Tobit Regression model to see the factors that affect the efficiency level of insurance companies during the period of Covid-19. This result indicates the average efficiency score of Sharia and conventional insurance fluctuated, especially in 2020 there was a decline in efficiency scores, and it is evidence that Covid-19 has had little effect on the insurance business, both conventional and sharia insurance. However, this study reveals that the average conventional insurance can adjust to these conditions faster than the average sharia insurance. The effect on the efficiency level of the insurance companies can be seen from internal and external factors. The findings in this study indicate that insurance efficiency is more influenced by internal variables such as SIZE, ROA and NPM than external variables. There was no significant change in insurance efficiency during the Covid-19 pandemic.

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Stability of insurance efficiency during the Covid-19 pandemic: A comparative study between Islamic and conventional insurance in Indonesia

Cited by 6 publications

References 17 publications

Lifeguarding the Future: Unveiling the Key Influences on Life Insurance Intent in Johor

Lifeguarding the Future: Unveiling the Key Influences on Life Insurance Intent in Johor

Measuring and Analyzing the Efficiency of Firms in the Insurance Industry Using DEA Techniques

Takaful and Insurance Efficiency Determinants: Pre and Post Covid-19 Pandemic

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