Comparison of the Accuracy of the Risk-Based Capital and Early Warning System Method in Assessing the Financial Performance of Sharia Life Insurance

DOI

10.2991/aer.k.210121.026How to use a DOI?

Keywords

Accuracy, Performance, Finance, Insurance, Sharia

Abstract

The purpose of this study is to compare the accuracy of the Risk-Based Capital (RBC) and Early Warning System (EWS) methods in measuring the financial performance of sharia insurance. The study’s subjects were Islamic life insurance companies registered with the Financial Services Authority (OJK) in 2018. Measurement of financial performance with Risk-Based Capital (RBC) used solvency ratios, and Early Warning System (EWS) employed solvency ratios, liquidity ratios, rentability ratios, and technical ratio. The analysis technique utilized a paired sample test. The results showed that the EWS method had a greater deviation than RBC. It means that the RBC method is more accurate than the EWS method.

Copyright

© 2021, 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  - Ahim Abdurahim
AU  - Rezki Setiawan
PY  - 2021
DA  - 2021/01/21
TI  - Comparison of the Accuracy of the Risk-Based Capital and Early Warning System Method in Assessing the Financial Performance of Sharia Life Insurance
BT  - Proceedings of the 4th International Conference on Sustainable Innovation 2020-Accounting and Management (ICoSIAMS 2020)
PB  - Atlantis Press
SP  - 191
EP  - 198
SN  - 2352-5428
UR  - https://doi.org/10.2991/aer.k.210121.026
DO  - 10.2991/aer.k.210121.026
ID  - Abdurahim2021
ER  -