Proceedings of the 4th International Conference on Sustainable Innovation 2020-Accounting and Management (ICoSIAMS 2020)

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

Authors
Ahim Abdurahim, Rezki Setiawan
Corresponding Author
Ahim Abdurahim
Available Online 21 January 2021.
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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Volume Title
Proceedings of the 4th International Conference on Sustainable Innovation 2020-Accounting and Management (ICoSIAMS 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
21 January 2021
ISBN
10.2991/aer.k.210121.026
ISSN
2352-5428
DOI
10.2991/aer.k.210121.026How to use a DOI?
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/).

Cite this article

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  -