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The Effect of Corporate Governance and Premium Growth on the Performance of Insurance Companies in Indonesia

Author

Listed:
  • Markonah Markonah
  • Achmad Sudiro
  • Surachman
  • Mintarti Rahayu

Abstract

Purpose: The aim of this study is to test the hypothesis about the effect of corporate governance and premium growth in the performance of insurance companies in Indonesia. The growth rate of insurance premiums has decreased throughout 2016, followed by a decline in performance mainly influenced by poor corporate governance. Design/Methodology/Approach: By comparing different studies we try to come to a conclusion regarding the effect of corporate governance and premium growth in the performance of insurance companies. Some previous research stated that corporate governance does not positively affect the performance of these companies. Others, have found that growth in premiums, capital growth, returns, claims ratios, and types of capital affected the growth of life insurance company assets, while the ratio of acquisition costs, administrative cost ratios, and capital did not significantly affect the growth of life insurance company assets in Indonesia. Findings: The findings in this study are the research framework which states that The Effect of Corporate Governance and Premium Growth on the Performance of Insurance Companies in Indonesia with company growth as mediation. Practical Implications: Findings of this study can be used by insurance companies as a study material to improve their performance. Originality/Value: The research hypotheses tested as they have been generated from the research framework.

Suggested Citation

  • Markonah Markonah & Achmad Sudiro & Surachman & Mintarti Rahayu, 2019. "The Effect of Corporate Governance and Premium Growth on the Performance of Insurance Companies in Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 367-383.
    • Handle: RePEc:ers:journl:v:xxii:y:2019:i:2:p:367-383
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    References listed on IDEAS

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    Cited by:

    1. Souzan M. Kabbani & Essam K. Zaneldin, 2021. "The Impact of Corporate Governance on the Profitability of Insurance Firms in Syria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(2), pages 150-163, April.
    2. Tulus Suryanto & Darul Dimasqy & Reza Ronaldo & Mahjus Ekananda & Teuku Heru Dinata & Indra Tumbelaka, 2020. "The Influence of Liberalization on Innovation, Performance, and Competition Level of Insurance Industry in Indonesia," Sustainability, MDPI, vol. 12(24), pages 1-25, December.
    3. Al-Zuhairi Ahmed Khalaf Hussein, 2024. "Analysis of Underwriting Activity and its Impact on the Profitability Ratios of the Insurance Companies Listed in the Iraq Stock Exchange," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 34(2), pages 1-31, June.

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    More about this item

    Keywords

    Corporate Governance; Insurance Premium; Corporate Performance; Company Growth.;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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