Specialized and diversified management are the important modes of internal allocation of enterprise resources.The choose of whether “put all eggs into a basket and concentrate on it” or “put the eggs into different baskets”is a problem that corporate managers and academic researchers have to think about.Most of the existing literature is about the effect of diversification on corporate performance.Literature concerning with the effect of diversification on risk is mostly based on the perspective of listed companies or banks.This paper adopts the GMM dynamic panel model to study the effects of diversification of product and geographic on the risk of property-liability insurers in China based on the unbalanced panel data of the property-liability insurance companies from 2007 to 2015.First,we construct the variables of diversification and risk.The product diversification and geographical diversification can be measured by Herfindahl Index.As for the risk,we account for both solvency risk and bankruptcy risk.In the descriptive statistics part,we find that the diversification of Chinese and foreign property-liability insurance companies is different.Accounting for the difference,we carry on a classified empirical study to find out the heterogeneous effect of diversification on risk between the Chinese and foreign property-liability insurance company.This research shows that product diversification of Chinese property-liability insurance companies may reduce their solvency,but its impact on bankruptcy risk is not significant.The product diversification of foreign property-liability insurance companies may increase their solvency and reduce their probability of bankruptcy.The geographical diversification of Chinese property-liability insurance companies will significantly reduce their solvency,but the geographical diversification of foreign property-liability insurance companies may take no significant effect on their solvency and bankruptcy probability.