The Role of the Board of Commissioners in Improving the Financial Performance of Sharia Insurance Industries in Indonesia

This study analyzed the factors that influence financial performance and further analyzed the role of the board of commissioners in improving the financial performance of Sharia insurance companies in Indonesia. Financial performance is measured by the surplus related to its contributions, while the predictor variable is size, age and company status. The study was conducted with and focused on Islamic insurance companies and Islamic business units in conventional insurance companies. The research period was 2012 to 2017. The data was analyzed using moderated regression analysis. The results showed that size had a positive effect, age had a negative effect and status had no effect on financial performance. The board of commissioner’s moderates (weakens) the relationship between size and status with financial performance and further moderates (strengthens) the relationship between age and financial performance in Sharia insurance companies. Keywords— surplus on contribution, board of commissioners, Sharia insurance