Such risks are very hard to insure or reinsure due to the unavailability of any statistics or data to determine underwriting rates.

That risks for Russia include destruction of dams of major HEPPs, accidents involving expensive space or infrastructure facilities, grate forest fires (and as well human-made) in populated areas, devastating floods, etc.

Definite risks — especially in case of mandatory insurance — feature very specific underwriting procedures and regulatory framework in Russia, so they can’t be ceded to foreign reinsurers.

In addition, a large number of risks may not be ceded abroad due to national security issues (e.g. if their reinsurance may lead to disclosure of state secrets) or economic security (insurance of state-guaranteed orders).

To address the above issues and restrictions, the Russsain authorities represented by the Central Bank of Russia set up RNRC with objectives and tasks including: RNRC delivers reinsurance solutions to Russian and foreign companies in non-life insurance industry on both a Treaty and Facultative basis.

[7] The company regularly issues reports with the results of the analysis of the situation in the Russian reinsurance market.

[13][14] Fitch downgraded the rating of RNPK to CC on 14 March 2022, in the wake of the 2022 Russian invasion of Ukraine.

[1] The key rating drivers were payment restriction risks (some obligations are denominated in foreign currencies), a weakened operating environment of the Russian insurance industry caused by deepening sanctions and Russia's policy responses, a weakened business profile, heightened investment risk primarily through exposure to state bonds and local securities markets, and access to reinsurance markets inasmuch as sanctions and payment restrictions could limit access to international reinsurance markets, thereby reducing risk management options for insurers.