The Pulse of Value: Early Warning Systems and Financial Health as Crucial Determinants for Sharia Insurance Firms

This study aims to examine the effect of the Early Warning System (EWS), solvency, and profitability on the value of Islamic insurance companies listed on the Indonesia Stock Exchange (IDX) during the period 2020–2024. This study employs an associative quantitative method within a positivistic paradigm, using panel data from six companies, totalling 120 observations. The analysis was conducted using the Fixed-Effects Model (FEM) in EViews 12. The results show that liquidity, claim expenses, Risk-Based Capital (RBC), and Return on Assets (ROA) have a significant effect on company value, whereas changes in surplus do not. The simultaneous test (F-test) indicates that all variables collectively affect company value, with an Adjusted R² of 0.517. This study highlights that implementing an effective EWS is a strategic, prudential tool for improving transparency, risk management, and sharia-compliant financial sustainability.

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Publication Details

Journal
Maliki Islamic Economics Journal
Published
2025-12-31
DOI
https://doi.org/10.18860/miec.v5i2.37856
Primary Topic
Insurance and Financial Risk Management
Type
article
Field-Weighted Citation Impact
0.00
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article

The Pulse of Value: Early Warning Systems and Financial Health as Crucial Determinants for Sharia Insurance Firms

M Atoillah, Razali Ade Syahputra Hasibuan, Ulfi Kartika Oktaviana
Maliki Islamic Economics Journal
Insurance and Financial Risk Management
article

The Pulse of Value: Early Warning Systems and Financial Health as Crucial Determinants for Sharia Insurance Firms

M Atoillah, Razali Ade Syahputra Hasibuan, Ulfi Kartika Oktaviana
article en

Abstract

This study aims to examine the effect of the Early Warning System (EWS), solvency, and profitability on the value of Islamic insurance companies listed on the Indonesia Stock Exchange (IDX) during the period 2020–2024. This study employs an associative quantitative method within a positivistic paradigm, using panel data from six companies, totalling 120 observations. The analysis was conducted using the Fixed-Effects Model (FEM) in EViews 12. The results show that liquidity, claim expenses, Risk-Based Capital (RBC), and Return on Assets (ROA) have a significant effect on company value, whereas changes in surplus do not. The simultaneous test (F-test) indicates that all variables collectively affect company value, with an Adjusted R² of 0.517. This study highlights that implementing an effective EWS is a strategic, prudential tool for improving transparency, risk management, and sharia-compliant financial sustainability.

Maliki Islamic Economics JournalVol. 5(2)
Regenstrief Institute (US), Universitas Islam Negeri Maulana Malik Ibrahim (ID), Relief International (US)
Industry, innovation and infrastructure
Openalex Percentile: Top 12%
Insurance and Financial Risk Management
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