Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company?
The risks protected in opposition to by property and casualty companies are very much less predictable as compared to are the risks insured by life insurance companies. Hurricanes, fires, floods, and trial judgments are all very difficult to predict than the number of sixty-year-old females who will die this year among a large number in this risk class. The meaning of this is that property and casualty insurance companies should keep more liquid assets than do life insurance companies.