The Effect of Risk-Based Capital and Claim Ratio on the Financial Performance of Insurance Companies

The insurance industry has developed rapidly enough to cause intense competition between companies. In competition, it is necessary to have good work prospects and public trust, one of which is having a healthy financial performance. Financial performance can be influenced by several factors, namel...

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Main Authors: Nur Azizah, Rida Perwita Sari
Format: Article
Language:English
Published: Universitas KH Abdul Chalim, Prodi Ekonomi Syariah 2025-06-01
Series:Indonesian Interdisciplinary Journal of Sharia Economics
Subjects:
Online Access:https://e-journal.uac.ac.id/index.php/iijse/article/view/6915
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author Nur Azizah
Rida Perwita Sari
author_facet Nur Azizah
Rida Perwita Sari
author_sort Nur Azizah
collection DOAJ
description The insurance industry has developed rapidly enough to cause intense competition between companies. In competition, it is necessary to have good work prospects and public trust, one of which is having a healthy financial performance. Financial performance can be influenced by several factors, namely risk-based capital and claim ratio. The study analyzed whether risk-based capital and claim ratios affect financial performance. The population of this study is insurance companies listed on the Indonesia Stock Exchange (IDX) in 2019-2023. This research uses quantitative methods with purposive sampling methods with a total sample of 15 companies over 5 5-year period. The data used in this study are secondary data obtained through the company’s financial statements and annual reports. The results of this study indicate that risk-based capital affects financial performance. Meanwhile, the claim ratio does not affect financial performance.
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publishDate 2025-06-01
publisher Universitas KH Abdul Chalim, Prodi Ekonomi Syariah
record_format Article
series Indonesian Interdisciplinary Journal of Sharia Economics
spelling doaj-art-0292a3f9d80a497580a8e7d47641afef2025-08-20T02:39:35ZengUniversitas KH Abdul Chalim, Prodi Ekonomi SyariahIndonesian Interdisciplinary Journal of Sharia Economics2621-606X2025-06-018210.31538/iijse.v8i2.6915The Effect of Risk-Based Capital and Claim Ratio on the Financial Performance of Insurance CompaniesNur Azizah0Rida Perwita Sari1Universitas Pembangunan Nasional “Veteran” Jawa Timur, Surabaya, IndonesiaUniversitas Pembangunan Nasional “Veteran” Jawa Timur, Surabaya, Indonesia The insurance industry has developed rapidly enough to cause intense competition between companies. In competition, it is necessary to have good work prospects and public trust, one of which is having a healthy financial performance. Financial performance can be influenced by several factors, namely risk-based capital and claim ratio. The study analyzed whether risk-based capital and claim ratios affect financial performance. The population of this study is insurance companies listed on the Indonesia Stock Exchange (IDX) in 2019-2023. This research uses quantitative methods with purposive sampling methods with a total sample of 15 companies over 5 5-year period. The data used in this study are secondary data obtained through the company’s financial statements and annual reports. The results of this study indicate that risk-based capital affects financial performance. Meanwhile, the claim ratio does not affect financial performance. https://e-journal.uac.ac.id/index.php/iijse/article/view/6915Financial PerformanceRisk Based CapitalClaim Ratio
spellingShingle Nur Azizah
Rida Perwita Sari
The Effect of Risk-Based Capital and Claim Ratio on the Financial Performance of Insurance Companies
Indonesian Interdisciplinary Journal of Sharia Economics
Financial Performance
Risk Based Capital
Claim Ratio
title The Effect of Risk-Based Capital and Claim Ratio on the Financial Performance of Insurance Companies
title_full The Effect of Risk-Based Capital and Claim Ratio on the Financial Performance of Insurance Companies
title_fullStr The Effect of Risk-Based Capital and Claim Ratio on the Financial Performance of Insurance Companies
title_full_unstemmed The Effect of Risk-Based Capital and Claim Ratio on the Financial Performance of Insurance Companies
title_short The Effect of Risk-Based Capital and Claim Ratio on the Financial Performance of Insurance Companies
title_sort effect of risk based capital and claim ratio on the financial performance of insurance companies
topic Financial Performance
Risk Based Capital
Claim Ratio
url https://e-journal.uac.ac.id/index.php/iijse/article/view/6915
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AT nurazizah effectofriskbasedcapitalandclaimratioonthefinancialperformanceofinsurancecompanies
AT ridaperwitasari effectofriskbasedcapitalandclaimratioonthefinancialperformanceofinsurancecompanies