Following the civil unrest that occurred in July 2021 in KwaZulu Natal and Gauteng, 14 100 claims were lodged with Sasria totalling some R32 billion. Against this loss, Sasria received premiums totalling R2,4 billion in 2020 which is likely to have increased by 5% in 2021. In addition, Sasria have capital reserves of R9,7 billion and reinsurance protections of R6,5 billion.
The shortfall in Sasria funds falls on the South African government, the ultimate reinsurer of Sasria, and to date, the government has made a total of R14,9 billion available to Sasria to settle claims.
In consequence, Sasria have reviewed their premium rating model which has resulted in some substantial rate increases on certain commercial classes of risk. The increased rates are effective from 1 February 2022, and your account manager will directly address the impact of these increases on your insurance portfolio with you.