The conversation between human and AI assistant.
How are the insurance companies pay benefit given that they have already invested reserves in the start of each year?
How does the investment of reserves affect the ability of insurance companies to pay benefits?
The investment of reserves is meant to generate additional income for the insurance company, which helps them to remain financially stable and pay out benefits when needed. However, if the investment strategy fails or there are unexpected losses, it can impact the ability of the company to pay out benefits.