What Does Quick Asset Mean?
Quick assets are assets that can be converted into cash with great speed. Cash itself is often considered a quick asset.
Insuranceopedia Explains Quick Asset
Insurance companies sometimes experience periods with incredibly high volumes of claim filing. This can happen, for instance, when a natural disaster strikes. During these periods, insurance companies may sell off their quick assets to generate more available cash.
Quick assets can include accounts receivable and securities such as stocks. Insurance companies often own a lot of stocks because they invest the premiums they collect to generate higher profits. These stocks can also be converted into quick cash as needed.