Factors that influence an insurer's financial strength include:

Capital and liquidity are fundamental factors that influence an insurer's financial strength. Capital refers to the financial resources that an insurer has readily available to meet its obligations, including policyholder claims. Sufficient capital allows an insurer to absorb losses and provides a cushion against underwriting risks. Liquidity is equally important, as it denotes the insurer's ability to quickly convert assets into cash to settle short-term obligations. Insurers need to maintain an adequate level of both capital and liquidity to ensure ongoing operations and stability in the event of unexpected claims or financial downturns.

While employee satisfaction, advertising expenses, and geographic coverage can have indirect effects on an insurer's performance, they do not directly determine its financial strength. Employee satisfaction can impact operational efficiency and turnover, but it doesn't directly affect financial metrics. Similarly, advertising expenses might influence market share and visibility, yet they are part of operational costs rather than core financial strength. Geographic coverage relates to the market reach of the insurer, but without solid capital and liquidity, an insurer may struggle regardless of its geographic footprint. Thus, capital and liquidity remain the primary indicators of an insurer's ability to withstand financial pressures and fulfill its commitments to policyholders.