EAS Publisher | Effect of Managerial Competency and Corporate Governance on the Performance of Indonesian Life Insurance

Effect of Managerial Competency and Corporate Governance on the Performance of Indonesian Life Insurance

DOI : https://doi.org/10.36349/easjebm.2024.v07i06.005

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The success of insurance companies in general and in Indonesia depends on the performance of the company's executives and board of directors. The aim of this research is to analyze the influence of managerial competence and independent commissioners on the performance of insurance companies in Indonesia. The number of life insurance companies in this research sample was 22 companies from 2018 to 2022, so the total research data was 110. After removing 10 outlier data, the final data analyzed was 100. This research models the relationship between managerial competence, the proportion of independent board of directors and the performance of life insurance companies. The results of this research show that managerial competence and the proportion of independent directors, which are proxies for governance, have a significant and positive relationship to the performance of insurance companies in Indonesia, both partially and simultaneously. Manager competency and corporate governance mechanisms have improved company performance.

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