Property and casualty insurance companies hold more liquid assets than do life insurance companies because

Question

Quizplus · Accepted Answer

Property and casualty insurance companies hold more liquid assets because events such as fires and earthquakes are difficult to predict. These companies need to have sufficient liquid assets to be able to pay out claims quickly after unexpected events occur. Life insurance companies, on the other hand, generally make longer-term investments since they face fewer unexpected claims.

Property and Casualty Insurance Companies Hold More Liquid Assets Than