Insurance risk management
Liquidity has always been a vital concern for life insurance companies. Therefore, appropriate liquidity risk management is central to protecting the claims paying ability of the insurer.
i. What are the factors that affect the predictability of claims loss exposure for a non-life insurer? Discuss these factors based on the liquidity risk management perspective of a non-life insurer.
ii. What are the primary methods that non-life insurance companies can use to reduce their liquidity risk?
