Insurers can reinsure some of the risks that they themselves accept. This may involve risks above a certain amount, but also special risks. At life insurance companies, special risks are often risks related to the health of the insured.
There may be several reasons for insurance companies to reinsure risks. The primary reason is to manage financial risks. This applies both to the insured amounts and to the assessment of the death risks, and the latter is especially important for people with a medical condition. These risks are often higher, but sometimes also less known, so that an ordinary insurer does not want to accept them. Reinsurance can then offer a solution.