RNRC Considers Limiting Terrorism & Sabotage Risk Payouts
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Insights by Echo AI
The Russian National Reinsurance Company (RNRC) is contemplating imposing a cap of 200 billion rubles on losses from terrorism and sabotage risks, including drone attacks. If insurers' payouts surpass this threshold, their rates will significantly increase, and reinsurance coverage will be reduced by five times. Industry experts attribute this move to RNRC's aim to preserve financial stability without additional funding from the Bank of Russia and to stimulate market participants to enhance their own reinsurance capabilities.
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