Insurance companies invest mainly in instruments trade on the?
Answer Details
Insurance companies primarily invest in instruments traded on the capital market.
The capital market is a market where long-term financial instruments, such as bonds and stocks, are traded. Insurance companies typically invest their premiums and other funds in financial instruments with long-term maturity dates, and the capital market is the best place to find such instruments.
Investing in the capital market allows insurance companies to earn a return on their investments, which helps them pay claims and maintain their financial stability. Additionally, the capital market provides insurance companies with a way to diversify their investments, reducing their exposure to risk.
Therefore, the correct answer is "capital market."