The Effect of Claim Ratio and Solvency Margin Ratio on Tobin's Q with the Implementation of Risk Management as Moderation

Insurance companies play a crucial role in risk management. This study highlights that the role of enterprise risk management as a moderator indicates that to enhance company value (empirical study on insurance companies listed on the Indonesia Stock Exchange (IDX)), effective risk management practices are essential. Insurance companies serve as a form of risk transfer. The analytical tool used is panel data regression analysis, which aims to analyse how a high claim load can lead to decreased profitability and how the Solvency Margin Ratio measures the financial capability of a company to cover the risks it assumes. This research demonstrates that risk management is necessary for insurance companies. The application of risk management acts as a moderating variable, meaning the impact of the Claim Load Ratio and Solvency Margin Ratio on Tobin's Q may vary depending on the level of risk management implementation.