They does (sic) what yet again? Ryanair operated a flight. Some passengers chose not to travel. The UK Government, from whose territory the flight originated, chose not to issue a travel advisory (not surprisingly, for political reasons). Therefore the passengers have no automatic right to a refund or insurance claim.

Could the airline have issued goodwill gestures? Yes.
Should they have done so? Perhaps, depending on your point of view.
Are they obliged to? No.

Not clear what your references to checked bags and "never being transported" are about.