Year: 2025 | Month: January | Volume: 12 | Issue: 1 | Pages: 427-441
DOI: https://doi.org/10.52403/ijrr.20250151
Credit Risk Influence on Insurance Performance During Credit Restructuring Policy
Cahyaning Tyas Anggorowati1, Willem A. Makaliwe1
1Department of Economics, Faculty of Economics and Business, University of Indonesia, Jakarta, Indonesia.
Corresponding Author: Cahyaning Tyas Anggorowati
ABSTRACT
This study analyzes the relationship between banking credit risk and general insurance performance during the banking credit restructuring policy period in Indonesia from March 2020 to March 2024. Credit, Nonperforming loans (NPL), and credit interest rates variables are used as proxies for banking risk. General insurance performance is proxied by credit premium, credit claim, and profit before tax. Through multiple regression analysis using Ordinary Least Squares (OLS), this study shows that there is a significant effect of banking risk on general insurance performance. The relationship between banking and insurance can be a complementary or substitution relationship, depending on how important risk transfer and capital allocation. The result provides useful insights to achieve co-evolution of banking and insurance in maintaining financial system stability.
Keywords: banking credit risk; credit restructuring policy; general insurance performance
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