Discuss the difference between life insurance and non-life insurance companies with regard to the certainty of...

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Finance

Discuss the difference between life insurance and non-lifeinsurance companies with regard to the certainty of timing andamount of cash outflows (i.e., which company’s cash outflow is morepredictable in terms of amount and timing?). Why is life insurancecompany more suitable to invest its capital in equity portfoliothan non-life insurance company who is more suitable to invest itscapital in fixed income securities?

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Discuss the difference between life insurance and non-lifeinsurance companies with regard to the certainty of timing andamount of cash outflows (i.e., which company’s cash outflow is morepredictable in terms of amount and timing?). Why is life insurancecompany more suitable to invest its capital in equity portfoliothan non-life insurance company who is more suitable to invest itscapital in fixed income securities?

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