Which of the following risks is of most concern to an insurance company during a natural disaster?
A)exchange rate risk
B)liquidity risk
C)swap risk
D)default risk

Question

Quizplus · Accepted Answer

During a natural disaster, an insurance company is most concerned with liquidity risk because it may need to quickly pay out a large number of claims, requiring access to sufficient liquid assets.

Which of the Following Risks Is of Most Concern to an Insurance