THE EFFECT OF JCI, INFLATION RATE AND BI RATE TOWARDS EQUITY-BASED UNIT LINK RETURN OF ALLIANZ LIFE (PERIOD MAY 2009 - NOVEMBER 2012)

Abstract

This study is motivated by the fast growth of Unit Link product, which an insurance product who offers protection and investment that many people haven’t been aware about it. Particularly, this study examines the Unit Link product of PT. Asuransi Allianz Life Indonesia which one of top leading insurance company in Indonesia. Also, this research specifically choose to study about Equity-based Unit Link product which have highest return among all of Unit Link product. Since Equity-based Unit Link return have highest return, it also have highest risk. Researcher specifically choose three variables to be tested in this research which are: JCI rate, Inflation rate and BI rate. The aim of this study is to find out what how much the influence of these factors towards Equity-based Unit Link. After literature review and hypothesis development, the data was retrieved from Allianz Life website for Equity-based Unit Link return, Yahoo Finance for JCI rate, and Bank Indonesia website for both Inflation rate and BI rate and the data taken from May 2009 to November 2012. Data was analyzed by using quantitative and qualitative analysis. Quantitative analysis consists of classic assumption test which are: normality, heterocedacity, multicollinearity and autocorrelation test, multiple regression analysis, correlation coefficient (R) and coefficient determination (R2) and hypothesis testing by t test and f test. Qualitative analysis is an interpretation from data collected in this study and data processing results by adding explanation. Hypothesis using t test shows that the three independent variables used in this study significantly influences dependent variable. F test reveal all independent variables are adequate to test dependent variable. R value of 0.639 shows that independent variables have strong and positive correlation toward its dependent variable, and adjusted R square of 0.363 shows that 36.3 percent of factors that affecting Equity-based Unit Link return can be explained by these three variables, whereas the other 63.7 percent is explained by other variables.