Behind Every Promise: The Power of Reinsurance

Jul 2, 2026

When Wendy’s friend and client suddenly lost her husband on his 70th birthday, Wendy was able to deliver a life insurance check within 48 hours. This benefit helped cover a funeral with dignity and ensured she kept their new home. Life insurers deliver on promises like this every day, paying out $89 billion in claims in 2024. With so much at stake, insurers often use reinsurance — insurance for insurers — to make claim costs more predictable. Almost 90% buy reinsurance for their life insurance business, which helps keep coverage available for families like Wendy’s friend.

Reinsurance also makes Americans’ retirement savings go further. Life insurance companies paid out $110 billion in annuity benefits in 2024, and over half of companies buy reinsurance for their annuity business. Reinsurance provides capital that helps insurers offer more competitive guarantees and crediting rates.

Although consumers don’t buy or interact with reinsurance themselves, it plays an important role in helping life insurers manage risk and provide financial protection to American families. Reinsurance is a key tool because it diversifies risk beyond what any company could do on its own. In moments of shock, like the COVID-19 pandemic, reinsurance helps insurers keep coverage available.

Life insurers provide security through every stage of life — and reinsurance is a key pillar behind every promise.

Retirement Security

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