The Russian National Reinsurance Company (RNCP) plans to exclude the Moscow-City district from its reinsurance programs beginning in early 2024. This decision was prompted by the company's inability to monitor the growing risks in this area, especially given the increased drone activity beginning in May 2023, according to RBC, citing official company documents. The changes are expected to be finalized by the end of this month.
Additionally, RNCP is considering revising the general terms and conditions for insurance against risks associated with terrorist threats. "We have proposed a number of changes, which are currently being analyzed by our market partners. We expect their feedback in the coming weeks," a company representative shared.
According to the data provided, terrorism insurance statistics have become less predictable since 2022. The number of incidents has increased from once per year to over 100. At the same time, the RNCP has faced the challenge of monitoring the terms and conditions offered by various insurance programs.
In light of these changes, RNCP is considering offering asset and construction reinsurance for up to 25% of the total value. However, the maximum insurance payout will be limited to 15 billion rubles for property and construction work, and 3 billion rubles for civil liability. These terms will apply when RNCP partners with a consortium of insurers or individual companies willing to cover risks of 1 billion rubles or more.
