| It depends on the type of insurance company; mutual company, stock company, specialty lines, reinsurer, etc. Insurance corporations invest like any other business. Mutual insurers sometimes even pay dividends to their insureds. Some insurers actually hold investment companies or are under the same umbrella with investment companies, and any outsi6de investments are made through the sister/parent/subsidiary company. Then there is reinsurance, and that can provide liquid assets to an insurer (and sell liability so that another company actually takes on the responsibility of paying under the policy through the insurer) when an insurer needs capital. It can get intricate. | 
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