Financial performance of sharia and non-sharia life insurance: A comparative analysis

The emergence of Islamic insurance as a financial solution for Muslim communities, especially in Muslim-majority countries, is an intriguing topic. This study aims to evaluate the performance Sharia-compliant life Indonesia and its market presence. Specifically, it compares non-Sharia Sharia companies using Early Warning System (EWS) Risk-Based Capital (RBC). EWS evaluation measures capital adequacy ratio, claim expense liquidity own retention while RBC solvency ratio. results hypothesis testing, Mann-Whitney U test, reveal significant difference between based on EWS. However, there no their RBC's findings this imply that, whole, sharia-compliant outperforms non-sharia counterparts. Despite relatively small sample size, these offer ray hope institutions pursue further growth development.