For a property and casualty insurance. liquidity risk can be reduced by

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Liquidity risk in insurance refers to the risk that the company may not have sufficient liquid assets to pay claims when they come due. Diversifying geographically can help reduce the impact of catastrophic losses in any one location, thereby reducing the potential for large, unexpected payouts that could strain liquidity. Increasing the maturity of asset investments, investing more in real estate, or increasing investments in stocks and bonds may not directly reduce liquidity risk and could potentially increase it, as these assets may not be as easily convertible to cash in a short period without loss.

For a Property and Casualty Insurance