Those insurance companies whose claims are ____ predictable need to maintain ____ liquidity.

Question

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Insurance companies whose claims are less predictable need to maintain more liquidity in order to ensure that they have enough funds to pay out unexpected claims. On the other hand, insurance companies whose claims are more predictable can maintain less liquidity as they are able to accurately estimate the amount of claims they will need to pay out. Therefore, less predictable claims require more liquidity.

Those Insurance Companies Whose Claims Are ____ Predictable Need to Maintain