The assets of PC insurers are relatively short term and more liquid than those of life insurance companies.

Question

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PC insurers generally hold a higher proportion of liquid assets such as cash, government bonds, and short-term securities, which are easily convertible to cash. This is because they need to be able to quickly pay out claims and respond to changes in the insurance market. In contrast, life insurance companies typically hold more illiquid assets such as long-term bonds and real estate investments.

The Assets of PC Insurers Are Relatively Short Term and More