Actuarial Risk Management Practices and Firm Performance: The Mediating Role of E-Service Innovation

Dwi Widianto (), Muhtosim Arief, Mohammad Hamsal and Elidjen Elidjen
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Dwi Widianto: Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11530, Indonesia
Muhtosim Arief: Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11530, Indonesia
Mohammad Hamsal: Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11530, Indonesia
Elidjen Elidjen: Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta 11530, Indonesia

JRFM, 2024, vol. 17, issue 5, 1-15

Abstract: Research on actuarial risk management practices (ARMP) and insurance firm performance has revealed inconsistent results. Therefore, a mediating factor such as innovation is needed to bridge between them. Studies exploring the relationship between ARMP and innovation have been largely qualitative. This study offered a quantitative model focusing on the mediating role of e-service innovation between ARMP and firm performance. The hypothesized relationships were tested using a structural equation model (SEM), with a sample from 98 Indonesian insurance companies and WarpPLS 7.0 as the analytical tool. The results indicated that ARMP significantly influenced e-service innovation but was insignificant for firm performance. Furthermore, the findings highlighted the significant role of e-service innovation in insurance firm performance, which implied that e-service innovation acts as a mediator in the relationship between ARMP and firm performance. The practical application of the research findings makes them directly relevant and beneficial to the insurance industry, especially in Indonesia.

Keywords: actuarial risk management practices; e-service innovation; firm performance; insurance industry; Indonesian market (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
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