Insurance companies invest in many areas, but most of all they invest in bonds. This makes sense because bonds are perhaps the safest of all investment categories. Insurance companies – being in the business of risk assessment – would logically find the low risk that bonds represent appealing, but there are other reasons as well.

Questions:

a. How Insurance Companies Make Money?

b. Why Insurance Companies Invest?

c. What Insurance Companies Invest In?

Sample Solution

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