The Efficiency of General Insurance Companies in Indonesia

DOI

10.2991/icbmr-18.2019.51How to use a DOI?

Keywords

General Insurance, DEA, CCR, BCC

Abstract

This study investigates the efficiency of General Insurance companies in Indonesia for the period 2014-2015 as a result of the policy on recapitalization of insurance company's core capital as stated in the Financial Services Authority (POJK) Regulation No. 67/POJK.05/2015. The study employed the Data Envelopment Analysis, CCR and BCC model with an output orientation to see the efficiency value of each company from time to time. There were 70 insurance companies involved in this study. The input variables included operational expenses and equity capital, while the output variables included underwriting and investment returns. From the value of efficiency scales, i.e. a combination of CCR and BCC, there are 7 efficient companies in 2014 and 5 efficient companies in 2015. The values of the efficiency scale show different average efficiency of companies in 2014 and those in 2015. This indicates that the OJK's policy of raising core capital funds encourages companies to be more efficient.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Pientha Glenys Amanti
AU  - Alvin Ayodhia Siregar
PY  - 2019/03
DA  - 2019/03
TI  - The Efficiency of General Insurance Companies in Indonesia
BT  - Proceedings of the 12th International Conference on Business and Management Research (ICBMR 2018)
PB  - Atlantis Press
SP  - 314
EP  - 320
SN  - 2352-5428
UR  - https://doi.org/10.2991/icbmr-18.2019.51
DO  - 10.2991/icbmr-18.2019.51
ID  - Amanti2019/03
ER  -