TY - JOUR
T1 - Implementation of PSAK 71 and PSAK 74 in Minializing Failure of the Insurance Industry
AU - Rosantina, Elvia
PY - 2022
Y1 - 2022
N2 - This study aims to analyze the causes of default and PSAK 71 and PSAK 74 implementation effect on the risk of default. The analysis is carried out by using Public Interest Regulation Theory. This is qualitative research with case study method. Research data are sourced from questionnaires and interviews. Data were analysed using content, thematic, and constant comparative analysis. The results indicates that defaults can occur due to: (1) fraud, (2) underreserved, (3) weak governance, (4) poor investment management and (5) insurance product portfolio, and (6) weak regulations and supervision carried out by regulators. PSAK 71 and PSAK 74 will affect insurance companies in terms of financial reporting. and more conservatives reserving process. That way, it will indirectly affect the risk management and governance of insurance companies. PSAK 71 and PSAK 74 are in accordance with Public Interest Regulation Theory because they can indirectly reduce the risk of default.
AB - This study aims to analyze the causes of default and PSAK 71 and PSAK 74 implementation effect on the risk of default. The analysis is carried out by using Public Interest Regulation Theory. This is qualitative research with case study method. Research data are sourced from questionnaires and interviews. Data were analysed using content, thematic, and constant comparative analysis. The results indicates that defaults can occur due to: (1) fraud, (2) underreserved, (3) weak governance, (4) poor investment management and (5) insurance product portfolio, and (6) weak regulations and supervision carried out by regulators. PSAK 71 and PSAK 74 will affect insurance companies in terms of financial reporting. and more conservatives reserving process. That way, it will indirectly affect the risk management and governance of insurance companies. PSAK 71 and PSAK 74 are in accordance with Public Interest Regulation Theory because they can indirectly reduce the risk of default.
KW - default risks
KW - PSAK 71
KW - PSAK 74
KW - public interest
KW - risk management
UR - https://bircu-journal.com/index.php/birci/article/view/5994
U2 - 10.33258/birci.v5i3.5994
DO - 10.33258/birci.v5i3.5994
M3 - Article
SN - 2615-3076
VL - 5
JO - Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences
JF - Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences
IS - 3
ER -