The assets of life insurance companies need not be as liquid as those of casualty/property insurance companies because life companies have greater certainty of claims.

Question

Quizplus · Accepted Answer

Life insurance companies can predict more accurately when claims will be made due to the statistical predictability of mortality rates, allowing them to invest in less liquid assets. In contrast, casualty/property insurance companies face more uncertainty regarding when claims will occur, necessitating more liquid assets to cover unexpected claims.

The Assets of Life Insurance Companies Need Not Be as Liquid