Analysis of The Influence of Premium Regulation on Motor Vehicle Insurance Premiums in Indonesia
- DOI
- 10.2991/icbmr-18.2019.57How to use a DOI?
- Keywords
- dynamic data panel regression, insurance premiums, motor vehicle insurance, Newey-West corrected standard error, regulation
- Abstract
This study analyzes the regulatory impact of Indonesian Financial Services Authority (OJK) Circular Letter No. 6/D.05/2013 on tariff/premium regulation of general insurance, with particular reference to motor vehicle insurance premiums and premium rate change factors. Using data from 44 motor vehicle insurance companies in Indonesia from 2011 to 2016, a dynamic panel data regression model with generalized method of moment (GMM) developed by Arellano and Bond was used to analyze the impact of regulation on insurance premiums in Indonesia. To analyze the impact of regulation on changes in insurance premium volatility, this study used a fixed-effect method for panel data regression. Furthermore, to analyze the determinant factors for insurance premiums in the period before and after regulation, the study used panel data regression with weighted OLS method and Newey-West corrected standard error estimator. Empirical analysis showed that regulation has a positive and significant impact on motor vehicle insurance premiums in Indonesia but does not affect the volatility of such premiums. The factors affecting change of premium differ significantly in the period before and after deregulation.
- 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/).
Cite this article
TY - CONF AU - Zora Vidyanata AU - Yogo Purwono PY - 2019/03 DA - 2019/03 TI - Analysis of The Influence of Premium Regulation on Motor Vehicle Insurance Premiums in Indonesia BT - Proceedings of the 12th International Conference on Business and Management Research (ICBMR 2018) PB - Atlantis Press SP - 353 EP - 360 SN - 2352-5428 UR - https://doi.org/10.2991/icbmr-18.2019.57 DO - 10.2991/icbmr-18.2019.57 ID - Vidyanata2019/03 ER -