Quick Asset
Updated: 30 October 2024
What Does Quick Asset Mean?
Quick assets are assets that can be quickly converted into cash. Cash itself is typically considered the primary quick asset.
Insuranceopedia Explains Quick Asset
Insurance companies sometimes face periods of exceptionally high claim volumes, such as during a natural disaster. In these situations, they may sell off quick assets to increase their available cash.
Quick assets can include accounts receivable and securities like stocks. Insurance companies often hold substantial stock investments, using the premiums they collect to generate higher returns. These stocks can be quickly converted to cash when needed.
