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Foreign Ownership of Insurance Companies: Indonesian Case 2012-2015

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  • Ngasuko, Tri Achya

Abstract

This paper analyzes the relationship between the level of foreign ownership and performance of insurance companies in Indonesia. We use a panel dataset of 24 insurance companies in Indonesia over the period 2012 to 2015. We find that domestic insurance companies have better performance than foreign investment recipient. It is clear that local insurance companies can compete with foreign firms. We also find that there is no significant evidence of nonlinearities between the level of foreign ownership and insurance performance in Indonesia. This comes up a result that there is no particular optimal level of foreign ownership of the life insurance sector in Indonesia. The data also suggest that the performance of insurance companies with foreign investment is not significantly better or significantly worse than domestic insurance companies.

Suggested Citation

  • Ngasuko, Tri Achya, 2017. "Foreign Ownership of Insurance Companies: Indonesian Case 2012-2015," MPRA Paper 99152, University Library of Munich, Germany, revised 01 Apr 2017.
    • Handle: RePEc:pra:mprapa:99152
    as

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    File URL: https://mpra.ub.uni-muenchen.de/99152/1/MPRA_paper_99152.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Foreign Ownership; Insurance Performance; Indonesia;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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