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Wednesday, July 6, 2022

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Sasria gets R22bn shot in the arm after civil unrest bought the insurer to its knees

South Africa -Johannesburg - 13 July 2021 - The aftermath of the looting which took place at Chris Hani Mall, Vosloorus. Stores have been completely vandalized and only damaged. Picture: Itumeleng English/African News Agency(ANA)

South Africa -Johannesburg - 13 July 2021 - The aftermath of the looting which took place at Chris Hani Mall, Vosloorus. Stores have been completely vandalized and only damaged. Picture: Itumeleng English/African News Agency(ANA)

Published Feb 24, 2022

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Sasria is planning to increase its premium prices and look for new clients after the government gave it a shot in the arm of R22 billion to settle claims after the riots broke out in KwaZulu-Natal and Gauteng destroying thousands of businesses.

Many businesses were affected by the damage and destruction during the riots in July last year in the two provinces with loss of R50bn to the gross domestic product.

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National Treasury said the looting led to claims of R32bn, but Sasria was not able to meet all these claims.

“To help settle claims and ensure that the insurer has sufficient capital to meet regulatory requirements, government has allocated R22bn to Sasria in the current financial year.

“This includes R3.9bn through the Second Special Appropriation Act (2021), R11bn through the 2021 adjustment budget and R7.1bn allocated through Section 16 of the Public Finance Management Act, which is used to respond to unforeseen and unavoidable circumstances.

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“To strengthen its ability to respond to risks without relying on government, Sasria will increase premium prices, review reinsurance arrangements and explore ways to increase its client base,” said the budget review.

The July riots led to the killing of 342 people and others were arrested for inciting violence.

The government is planning to hire more police officers to deal with the riots and other civil disturbances.

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The SA Human Rights Commission is conducting hearings in Gauteng this week into the riots.

Early this week Police Minister Bheki Cele denied receiving intelligence report into the riots.

He said he only got the report in December and this was five months after the looting.

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However, former state security minister Ayanda Dlodlo stuck to her guns and said the intelligence was given to the police.

She said the intelligence agencies had done their work before the riots broke out in sharing information with the police on what was planned.

President Cyril Ramaphosa has promised to make changes in the security cluster.

BUSINESS REPORT ONLINE

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