Claiming that insurance float is a competitive advantage without fully recognizing its nature as a potential liability seems to me a dangerous simplification.
This capital is not without conditions; it is intrinsically linked to claims payment obligations, which impose strict mandates for coverage.
In case of significant market drawdowns or unexpected catastrophic events, as we saw with recent floods in New South Wales, this "productive capital" quickly turns into a major exit cost, requiring immediate liquidity.
Ignoring this basic risk amounts to neglecting the primary function of insurance and the need to maintain sufficient reserves to meet obligations, under penalty of triggering ASIC audits.
Prudent management of liabilities is a fundamental fail-safe, not a strategic option.