THE EFFECT OF UNDERWRITING RESULTS, OPERATING EXPENSES, AND INVESTMENT RESULTS ON THE ASSET GROWTH OF SHARIA INSURANCE COMPANIES IN INDONESIA 2024

Abstract

The optimal performance of a sharia insurance entity can be seen from its asset growth rate, when asset growth increases, the entity is able to fulfill all claim obligations to insurance participants in a timely manner, thereby increasing public trust in using sharia insurance products. Optimal management will be achieved if there is an increase in income and an emphasis on costs. Therefore, this study aims to see the relationship between underwriting results, operating expenses, and investment results on asset growth by involving 36 sharia insurance companies registered with the Financial Services Authority in 2024 as research samples. Sampling was conducted using a simple random sampling technique with secondary data obtained from the financial reports of each Sharia insurance company's website. This study employed a quantitative method with multiple regression analysis and was analyzed using IBM SPSS Statistics 25 software. Partial research results indicate that underwriting results have a significant positive effect on asset growth; higher underwriting results lead to greater asset growth. Meanwhile, operating expenses have a significant negative effect on asset growth; higher operating expenses lead to lower asset growth. Investment returns also have no effect on asset growth because the resulting investment returns are not optimal, thus not increasing the company's assets. Simultaneously underwriting results, operating expenses, and investment returns have a significant positive effect on asset growth with a coefficient of determination of 16%, while remaining influence is attributed to other factors not included in this study. Therefore, this research adds value to validate the measurement of Sharia insurance asset growth.