insurance and reinsurance companies, are under the special supervision of the regulator. With
a letter KEP-71/D.05/2022, the Financial Services Authority has revoked the business license
of PT Asuransi Jiwa Adisarana Wanaartha due to problems paying claims and customer losses.
PT Asuransi Jiwa Adisarana Wanaartha was penalized for violating the minimum solvency
level, minimum investment adequacy ratio, and minimum equity. PT Asuransi Jiwa Kresna
Life also experienced defaults on two of its insurance products as well as alleged embezzlement
of customer insurance. PT Asuransi Jiwasraya also experienced 10 corruption cases that
harmed customers, and PT Asuransi Bumiputera also experienced cases of default (Katadata,
2022).
From the existing phenomenon, it is necessary to analyze the performance of financial
performance of insurance companies before and during the COVID-19 pandemic because these
problems make companies, policyholders, and investors suffer losses. Insurance companies
must measure and know the company's financial performance so that they can identify
problems and make the right decisions. PSAK No. 28 concerning Loss Insurance Accounting,
lists the Early Warning System method that can be used as a financial performance
measurement tool in the insurance industry. In this study, the Early Warning System is used as
a tool to detect the financial performance of insurance companies with measurement indicators
using the claim expense ratio. In the Early Warning System, the claim expense ratio is
considered capable of representing the profitability, liquidity, and premium stability of
insurance companies, so that it can signal potential financial problems (Nyoman Winata, 2021).
Previous research conducted by (Zahra et al., 2023) and (Hida & Baskoro, 2022) shows
that there is a significant difference in financial performance in the form of an increase in the
value of the Early Warning System of insurance companies before and during the Covid-19
pandemic. Based on research (Pratiwi & Agustina, 2022) shows that there is a significant
difference in financial performance in the form of an increase in the value of the Early Warning
System of insurance companies before and during the Covid-19 pandemic. Meanwhile, based
on research conducted by (Prawesti, 2022); (Antoni, 2021); and (Irhamni & Karya, 2021)
shows the result that there is no significant difference in the financial performance of insurance
companies before and during the COVID-19 pandemic based on the Early Warning System.
Based on research (Pratiwi & Agustina, 2022) and (Hida & Baskoro, 2022) Comparative
analysis of financial performance using Risk-Based Capital shows a significant difference in
the form of an increase in value. While the research results (Winata & Awaloedin, 2023);
(Prawesti, 2022); (Antoni, 2021); and (Irhamni & Karya, 2021) shows the result that there is
no significant difference in the financial performance of insurance companies before and after
the COVID-19 pandemic based on Risk-Based Capital.
Based on the results of previous research, it can be concluded that there are differences
in research results from the measurement indicators of the Early Warning System and Risk-
Based Capital. Therefore, further research is needed. To obtain more comprehensive results.
The results of this study can be useful for insurance companies in managing their financial
health and for regulators in monitoring the solvency of the insurance industry. Researchers use
insurance companies listed on the Indonesian stock exchange because they are more vulnerable
to market movements and economic conditions and describe more clearly the information and
transparency of pandemic-related risks so that it can help assess the potential risks and stability