2019
DOI: https://doi.org/10.32783/csid-jid.v2i2.76
Keywords: Diversification, Infrastructure, Insurance.
PDFAbstrak
This paper analyses the product diversifications of insurance companies as supporting facilities for infrastructure development. In Indonesia, infrastructure development needs protection or guarantee and insurance as a medium that hinders risk transfer during the construction process. Product diversification carried out by insurance companies to support infrastructure development harms the company's financial performance. In addition, the more diversified the business lines owned by insurance companies, the lower their financial performance, which negatively impacts on its ability as a medium of risk transfer. Conversely, huge ownership of market share and reinsurance positively affect the financial performance of general insurance companies in Indonesia.