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Q&a2 - Q.2.6

J

Jesoos

Member
Hi

I am wondering why the investment income was not mentioned as part of the cash flows of a general insurer.

Is it because the term of general insurance contracts are generally too short that investment income won't be financially significant? :p

Thanks!
 
Jesoos said:
Hi

I am wondering why the investment income was not mentioned as part of the cash flows of a general insurer.

Is it because the term of general insurance contracts are generally too short that investment income won't be financially significant? :p

Thanks!
Click to expand...

Yes, general insurance contracts (with certain exceptions) are mostly renewable every year and investments are mostly held in low yielding liquid assets to match liabilities.
 
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