Jhonni Sinaga, A. Manurung, Nera Marinda Machdar, John Edward Harly Jacob FoEh
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Internal and External Determinants of Risk Based Capital
Abstract
This research aims to investigate the determinants of Risk Based Capital (RBC) of Indonesia’s general insurance public listed companies. Panel data regression model was used to analyze the internal and external variables influencing the RBC. This research finds that ratios of sales to total asset, gross profit to total asset, premium claim to total asset, investment to total asset, and interest have a significant impact on the RBC of Indonesia's publicly traded general insurance companies.
JEL classification numbers: C650, G22, G32.
Keywords: Sales to total asset, Policy rate, investment performance, Gross profit to total asset, Premium claim, Panel data regression model, Risk based capital (RBC).