The key distinction between life insurance and property and casualty insurance companies lies in the difficulty of projecting whether or not a policyholder will be paid off and how much the payment will be.

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Life insurance involves predicting when a policyholder will pass away and how much the payout will be, while property and casualty insurance involves predicting the likelihood of loss or damage to insured property and the corresponding cost of repairs or replacement. These predictions are inherently more uncertain and subject to variability in property and casualty insurance.

The Key Distinction Between Life Insurance and Property and Casualty