Thread by @MaanoMadima

Who will cover the damage caused to businesses in the last couple of days?

There is Sasira SOC Ltd.

Sasria is the only non-life insurer that provides special risk cover to all individuals and businesses that own assets in South Africa, as well as government entities.

It cover against risks such as civil commotion, public disorder, strikes, riots and terrorism, making South Africa one of the few countries in the world that provide this insurance, particularly at affordable premiums.

Sasira
had R8 528 million in Assets under management at the end of 2020. Up from R8 111 million in 2019.

Sasira also paid R991 million in claims in 2019.

Reinsurance risk is the risk of loss due to insuffi cient or inappropriate reinsurance cover relative to the risk management strategy and objective.

Reinsurance is used to manage underwriting risk. This does not, however, discharge the Company’s liability as primary insurer.

If a reinsurer fails to pay a claim for any reason, the Company remains liable for the payment to the policyholder.

Sasria’s reinsurance strategy is driven by the desire to use capital income effi ciently, protect the statement of fi nancial position and hence ensure a sustainable business.

The strategy is to retain as much premium income as possible subject to a solvency ratio target.

Sasria's reinsurers are;

Swiss Reinsurance Company Limited, Switzerland

Lloyd's Underwriters

Hannover Reinsurance Africa Limited, South Africa

Munich Reinsurance Company of Africa Limited, South Africa

SCOR Africa Limited

How Sasria does make its money?

Sasria makes its money through gross written premiums and investment returns.

Sasria does not do direct business with the public, but is most likely included in your different insurance cover, whether it’s home, vehicle or business insurance.

Some of how SASRIA's covers

1) Municipalities Assets
Mayors and councillors have a cover of up to a limit of R1.5 million for houses, and 30% of that is for the household contents.

2) Tertiary Institutions
Risk insurance cover from Sasria covers all South African tertiary institutions like universities, colleges Special and TVET colleges, whether the institution is public or private

3) Small Businesses
Entrepreneurs who own small businesses can have their assets protected against strikes, riots, protests, public disorder and terrorism. This cover applies to small businesses which have a total value of assets of up to R2 million.

4) Goods in Transit
This product covers all goods in transit only on South African soil, whether it’s through the land, air or sea such as marine cargo, marine hull, and inland water vessels.

5) Business interruption
The Business Interruption from Sasria covers the loss of business that occurs as a result of such incident.

Sasria’s primary cover will ensure that your assets are insured for up to R500 million.

The maximum any one insured can claim is R1.5 billion.

Losses arising from an event (where more than one insured is affected by the same event) in excess of R500 million will trigger Sasria’s catastrophe reinsurance.

Is Sasira SOC Ltd also badly ran like other State Owned Entities in South Africa?

1) Sasira doesn't rely on bailouts
2) Cash generated from operations of R318 million
3) received an unqualified opinion from its auditors in the previous year.
4) Profit after tax of R333m