Authors : Gusti Aisyah; Dr. Bambang Santoso Marsoem

Volume/Issue : Volume 9 - 2024, Issue 2 - February

Google Scholar : http://tinyurl.com/2zp3wt6d

Scribd : http://tinyurl.com/fdbfjp87

DOI : https://doi.org/10.5281/zenodo.10653370

Abstract : The research carried out aims to obtain analysis results related to the determinants of financial distress in the general insurance industry which is licensed and registered with the Financial Services Authority in Indonesia by using variable indicators of financial performance ratios regulated in the POJK (Financial Services Authority Regulations), namely the Underwriting Ratio , Liquidity Ratio, Investment to Technical Ratio, Risk Based Capital (RBC), Premium Growth Ratio to potential Financial Distress with Loss Ratio as a moderator variable. There for Indonesian general insurance for the period 2020 to 2022 were used as a population and obtained a sample size of 33 general insurance companies . Use of Logistic Regression and Moderated Regression Analys (MRA) methods as analysis techniques. The analysis results showed that the Underwriting Ratio, Liquidity Ratio, Risk Based Capital had a significant negative effect on the potential for financial distress and the Loss ratio had a moderating role (strengthening) the influence of the Underwriting Ratio, Liquidity Ratio, RBC on the potential for financial distress in general insurance companies in Indonesia.

Keywords : Financial Distress, General Insurance, Underwriting Ratio, Liquidity Ratio, Investment to Technical Ratio, Risk Based Capital, Premium Growth, Loss Ratio.