Research on actuarial risk management practices (ARMP) and insurance firm performance has revealed inconsistent results. Therefore, a mediating factor such as innovation is needed to bridge between them. Studies exploring the relationship between ARMP and innovation have been largely qualitative. This study offered a quantitative model focusing on the mediating role of e-service innovation between ARMP and firm performance. The hypothesized relationships were tested using a structural equation model (SEM), with a sample from 98 Indonesian insurance companies and WarpPLS 7.0 as the analytical tool. The results indicated that ARMP significantly influenced e-service innovation but was insignificant for firm performance. Furthermore, the findings highlighted the significant role of e-service innovation in insurance firm performance, which implied that e-service innovation acts as a mediator in the relationship between ARMP and firm performance. The practical application of the research findings makes them directly relevant and beneficial to the insurance industry, especially in Indonesia.