Diversification of Insurance Companies’ Products as Supporting Infrastructure Development Institutions in Indonesia

This paper analyses the product diversifications of insurance companies as supporting facilities for infrastructure development in Indonesia. Infrastructure development requires protection or guarantee and insurance as a medium for risk transfer hinders the implementation of infrastructure development both during the construction process and when the infrastructure is used. Product diversification carried out by insurance companies to support infrastructure development harms the company's financial performance. The more diversified business lines owned by insurance companies, the lower the company's financial performance. This will negatively impact the ability of insurance as a medium for risk transfer. On the other hand, huge ownership of market share and reinsurance will positively affect the financial performance of general insurance companies in Indonesia

PRODUCT DIVERSIFICATION DAN FINANCIAL PERFORMANCE PADA PERUSAHAAN ASURANSI UMUM

This study examines the relationship between product diversification and financial performance of 10 non-life insurance companies in Indonesia. The method that is being used in this study is multiple linear regression. The result shows that there is no relationship between product diversification and financial performance which shows that the product diversification has no significant effect upon the financial performance of non-life insurance companies in Indonesia. Furthermore, market share also has no significant relationship with the financial performance of non-life insurance companies in Indonesia. On the other hand, reinsurance shows negative relationship with financial performance, which implies the more reinsurance that was paid, the less financial performance that the non-life insurance companies in Indonesia had