State-owned short-term insurer, Sasria, recently announced an increase in their fees effective from 1 October 2019. Sasria SOC Ltd provides cover to businesses and municipalities that suffer losses related to riots, strikes, terrorism and public disorder.

Due to the staggering surge in the number of protests, as well as the severity of claims over the past five years, Sasria’s risk exposure has increased tremendously. During its 2018/19 financial year alone, the entity received more than 5,000 service delivery protest claims, reaching a record high of R1.7-billion in losses.

What Sasria says:

“We have to find new ways of engaging and solving problems, as service delivery protests – which often turn violent – lead to the destruction of assets and are a drain on the limited resources of the state,” explains Sasria MD Cedric Masondo.

He adds that due to the unprecedented rise in damages caused by violent protests, insurance for special risks can no longer be seen as a luxury in South Africa, but as a necessity, because of the volatile socioeconomic dynamics that have become part of daily life.

Violent protests are also not isolated to any specific province or region, they have become endemic across South Africa, and the momentum seems to be increasing.

Sasria has played a significant role in the prevention of job losses and maintenance of livelihoods, by enabling businesses to restore their liquidity and operations quickly and efficiently after experiencing damage due to violent protests, Masondo states.

Firstly, it is important to note that insurance intermediaries, like Voorpos, does not have control over this increase. And, despite the losses, Sasria is still liquid and able to pay claims, its suppliers and employees. However, in order to cater for this increased risk exposure, Sasria’s rates of poor performing business classes had to be reviewed. Claims, where the rates were not adjusted accordingly, will be rejected.

The rates for the following classes of business have been increased:

• Fire Commercial (F2)
• Contract Works
• Goods in Transit
• Mobile Plant (M6)
• Minimum premium on Fire Commercial, Contract Works, Goods in Transit, and Mobile Plant have increased.

Please do not hesitate to contact us if you require any additional information in this regard. We will gladly assist.

SASRIA is a state-owned short-term insurance company, which has a mandate to provide specialised risks cover for material damage and business interruption caused by riots, strikes, terrorism, civil commotion and public disorder to corporate, commercial and individual policy holders. SASRIA is a compulsory cover included in all our policies.

Source: https://www.sasria.co.za/press-release/