Riots: Sasria still reeling

CHALLENGE: RESTORING IT TO FORMER GLORY

- Adriaan Kruger

Sasria notes in its annual report that it has still not fully recovered from the wave of social unrest that swept KwaZulu-Natal and parts of Gauteng in July 2021, despite government pumping up R22 billion at the time to help cover claims.

Established as the SA Special Risk Insurance Association in 1979 to provide cover against events that other insurance companies are unwilling to insure (civil commotion, public disorder, strikes and riots), Sasria received nearly 18 000 claims totalling R31 billion following the unrest.

More than three years later, some of the effects of the burning and looting are still evident.

CEO Mpumi Tyikwe says the insurer is facing challenges restoring Sasria, in particular its reserves, to where it should be.

“Of greatest concern is the rising cost of reinsurance. While this impacts insurance markets globally, cost increases are particularly high in SA owing to scepticism about the market following July 2021.