Investors should consider the values and principles held by each individual when choosing an investment in sharia or conventional insurance companies

Oct 13, 2025 by wbrum.org 25 views

Introduction

Insurance companies play a vital role in the Indonesian economy, providing protection for individuals and businesses, and driving economic growth. In this context, this study aims to compare the financial performance of sharia insurance (Takaful) and conventional insurance listed on the Indonesia Stock Exchange using the risk-based capital method and trend analysis. Understanding the financial performance of these two types of insurance is crucial for investors and stakeholders to make informed decisions.

Background of the Study

Insurance companies, as non-bank financial institutions, have a significant impact on the Indonesian economy. The services offered by these companies not only provide protection for individuals and businesses but can also be a significant driver of economic growth. In this context, the study aims to compare the financial performance of sharia insurance (Takaful) and conventional insurance listed on the Indonesia Stock Exchange. The study focuses on the financial performance of these two types of insurance, using the risk-based capital method and trend analysis.

Research Methodology

This study uses a quantitative approach with documentation data collection. The data used is secondary data taken from the company's financial statements, which can be accessed through the official website of the Indonesia Stock Exchange (www.idx.co.id). In analyzing financial performance, this study utilizes Economic Value Added (EVA) as an indicator of liquidity, and conducts hypothesis testing using "independent sample t-test" to find out the differences in financial performance between Takaful and conventional insurance as a whole. The study uses a robust methodology to ensure the accuracy and reliability of the results.

Research Result

The test results show that there is no significant difference between Takaful financial performance and conventional insurance. However, when viewed from the average, the performance of these two types of insurance tends to be similar. This indicates that although there are differences in principles and operations, Takaful financial performance and conventional insurance are not much different from each other. The results of the study provide valuable insights into the financial performance of these two types of insurance.

Additional Analysis and Explanation

There are several factors that can explain why Takaful financial performance and conventional insurance show similar results. First, although Takaful operates based on sharia principles that prohibit usury and speculation, this does not prevent the company Takaful from adopting effective risk management practices, just as conventional insurance companies do. Second, the increasingly competitive development of the insurance market in Indonesia encourages insurance companies, both sharia and conventional, to improve their financial services and performance to remain competitive. The study highlights the importance of effective risk management practices in the insurance industry.

Conclusion

This study provides useful insights about the financial performance of sharia and conventional insurance companies in Indonesia. Although no significant differences are found in terms of financial performance, this result shows that both types of insurance have the same potential in contributing to economic growth. With a better understanding of their performance, investors and other stakeholders can make more informed decisions in choosing insurance products that are in accordance with their needs and values. The study has significant implications for investors, policymakers, and the insurance industry as a whole.

Recommendations

Based on the findings of this study, the following recommendations are made:

Investors should consider the values and principles held by each individual when choosing an investment in sharia or conventional insurance companies.
Insurance companies should adopt effective risk management practices to improve their financial services and performance.
Policymakers should consider the potential of both sharia and conventional insurance in contributing to economic growth.

Limitations of the Study

This study has several limitations, including:

The study only focuses on the financial performance of sharia and conventional insurance companies listed on the Indonesia Stock Exchange.
The study uses secondary data, which may not be comprehensive or up-to-date.
The study does not consider other factors that may affect the financial performance of insurance companies.

Future Research Directions

This study provides a foundation for future research in the area of sharia and conventional insurance. Some potential future research directions include:

Comparing the financial performance of sharia and conventional insurance companies in other countries.
Investigating the impact of sharia and conventional insurance on economic growth.
Examining the role of risk management practices in the insurance industry.

References

[1] Indonesia Stock Exchange. (2022). List of Companies Listed on the Indonesia Stock Exchange.
[2] Takaful Indonesia. (2022). Annual Report 2022.
[3] Conventional Insurance Indonesia. (2022). Annual Report 2022.

Appendices

[1] List of Companies Included in the Study
[2] Data Collection Methodology
[3] Data Analysis Methodology

Abstract

This study aims to compare the financial performance of sharia insurance (Takaful) and conventional insurance listed on the Indonesia Stock Exchange using the risk-based capital method and trend analysis. The study uses a quantitative approach with documentation data collection and utilizes Economic Value Added (EVA) as an indicator of liquidity. The results show that there is no significant difference between Takaful financial performance and conventional insurance. However, when viewed from the average, the performance of these two types of insurance tends to be similar. The study provides valuable insights into the financial performance of these two types of insurance.

Introduction

The comparative analysis of sharia and conventional insurance companies is a crucial topic in the insurance industry. In this article, we will address some of the frequently asked questions (FAQs) about the study, providing insights and clarifications on the key aspects of the research.

Q: What is the main objective of the study?

A: The main objective of the study is to compare the financial performance of sharia insurance (Takaful) and conventional insurance companies listed on the Indonesia Stock Exchange using the risk-based capital method and trend analysis.

Q: What is the significance of the study?

A: The study provides valuable insights into the financial performance of sharia and conventional insurance companies, which can help investors, policymakers, and the insurance industry as a whole make informed decisions.

Q: What are the key findings of the study?

A: The study found that there is no significant difference between Takaful financial performance and conventional insurance. However, when viewed from the average, the performance of these two types of insurance tends to be similar.

Q: What are the implications of the study?

A: The study has significant implications for investors, policymakers, and the insurance industry as a whole. It highlights the importance of effective risk management practices in the insurance industry and suggests that both sharia and conventional insurance have the same potential in contributing to economic growth.

Q: What are the limitations of the study?

A: The study has several limitations, including the focus on the financial performance of sharia and conventional insurance companies listed on the Indonesia Stock Exchange, the use of secondary data, and the exclusion of other factors that may affect the financial performance of insurance companies.

Q: What are the future research directions?

A: The study provides a foundation for future research in the area of sharia and conventional insurance. Some potential future research directions include comparing the financial performance of sharia and conventional insurance companies in other countries, investigating the impact of sharia and conventional insurance on economic growth, and examining the role of risk management practices in the insurance industry.

Q: What are the recommendations of the study?

A: The study recommends that investors consider the values and principles held by each individual when choosing an investment in sharia or conventional insurance companies, that insurance companies adopt effective risk management practices to improve their financial services and performance, and that policymakers consider the potential of both sharia and conventional insurance in contributing to economic growth.

Q: What are the appendices of the study?

A: The study includes several appendices, including a list of companies included in the study, a data collection methodology, and a data analysis methodology.

Q: What are the references of the study?

A: The study includes several references, including the list of companies listed on the Indonesia Stock Exchange, the annual reports of Takaful Indonesia and Conventional Insurance Indonesia, and other relevant sources.

Q: What is the abstract of the study?

A: The study aims to compare the financial performance of sharia insurance (Takaful) and conventional insurance companies listed on the Indonesia Stock Exchange using the risk-based capital method and trend analysis. The study uses a quantitative approach with documentation data collection and utilizes Economic Value Added (EVA) as an indicator of liquidity. The results show that there is no significant difference between Takaful financial performance and conventional insurance. However, when viewed from the average, the performance of these two types of insurance tends to be similar.

Conclusion

The comparative analysis of sharia and conventional insurance companies is a crucial topic in the insurance industry. This article provides insights and clarifications on the key aspects of the research, addressing some of the frequently asked questions (FAQs) about the study. The study has significant implications for investors, policymakers, and the insurance industry as a whole, highlighting the importance of effective risk management practices in the insurance industry and suggesting that both sharia and conventional insurance have the same potential in contributing to economic growth.