The Effect of Growth of Net Premium, Claim Ratio, RBC, and Retention Ratio on the Financial Performance of Insurance Companies in the ASEAN Region

Abstract

This research aims to find out the constraints that can affect the financial performance of insurance service companies in the ASEAN region that are currently running. Insurance companies operating in the ASEAN Region can use the research results. This research can be used as a basis for making a policy related to information on net premium growth, claims ratio, risk-based capital, and retention ratio. This study uses the research object of insurance companies in the ASEAN region. Insurance companies are overgrowing. This issue happened because Southeast Asia is one of the regions with the fastest development globally over the last 10 years. The use of insurance services in the Southeast Asia Region reached 3.77%. This percentage reflects that half of the use of services in the Southeast Asia Region represents half the use of insurance globally. The population in this study is Insurance Service Companies in the ASEAN Region. In contrast, the sample in this study is Insurance Service Companies in the ASEAN Region that are listed on the Stock Exchange in each country in the 2017-2019 period. Partially, net premium growth has a positive effect on financial performance, and claim ratios, risk-based capital, and retention ratios do not affect financial performance.