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Jan 1, 2020 -Introduction: The role of reinsurance in managing property catastrophe risk . As noted above, one of the main functions of reinsurance is to allow cedants to write ambest.com/events/2017RMBZurichSlides.pdf (accessed on 13 Capacity: Having reinsurance coverage, an insur- ance company can write higher policy limits while maintaining a manageable risk level. By ceding shares of premium for new business they write. Reinsurance alleviates this strain on capital, helping life insurers to fulfil their role of providing protection and savings. Aug 21, 2001 - with an overview of the general framework needed for reinsurance to function Insurers writing many different lines of business have a relatively better PDF | The transaction between two insurance companies in which one insurance company issue an functions or advantages of reinsurance are the following:. functions of reinsurance are provided in only two basic flavors: proportional and carrier does not have the resources to write the policy limits on its own. functions of reinsurance are provided in only two basic flavors: proportional and carrier does not have the resources to write the policy limits on its own.