What Role Does Reinsurance Play In Life Insurance? 
What role does reinsurance play in life insurance ? Reinsurance is a safety net used by insurance companies when a large face amount of coverage is purchased to spread the risk a bit among themselves and the reinsurer . They pay the reinsurance carrier for their risk and involvement in the policy . The insured usually does n't know this is happening . Any claim would be paid through the primary carrier . 