Which kind of insurance company usually takes on the greater risks: a life insurance company or a property and casualty insurance company?
The risks sheltered against by property and casualty companies are much less predictable than are the risks insured through life insurance companies. Hurricanes, floods, fires and trial judgments are all much harder to predict than the number of sixty-year-old females who will die this year amongst a large number in this risk class. It means that property and casualty insurance companies ought to keep more liquid assets than do life insurance companies.