The South African Special Risk Insurance Association (Sasria) says it has sufficient reserves to meet all valid unrest-related claims.
Although the parliamentary processes for additional government support is being finalised, “Sasria remains liquid and continues to trade as usual”.
It has been over two months since the unprecedented chain of events transpired in KwaZulu-Natal and parts of Gauteng that left businesses looted and destructed.
“Work has been underway since then to address the damages incurred and assist businesses to start operating again,” said Sasria’s managing airector Cedric Masondo.
Masondo said recent media reports had raised concerns among policyholders and the public at large regarding Sasria’s ability to honour claims following the unrest.
“These [concerns] are valid and noted. Sasria has made important business interventions, namely capital and reinsurance restructure, and government, as the sole shareholder, has committed to stand in as the entity’s insurer of last resort,” said Masondo.
Sasria said it remains committed to honouring all eligible claims and it has implemented the following plans to expedite claims payments:
National Treasury said R3.9 billion would be disbursed to Sasria following the conclusion of the recently tabled Special Appropriation Bill parliamentary processes.
This is to assist Sasria in meeting its obligations until the end of the current financial year, which ends on 31 March 2022.
“Our discussions with National Treasury are in line with the desired determination of the best medium that can inject capital, as we look at how to be future-proof ready and acknowledge the lessons learnt during the unfortunate unrest in July,” said Masondo.
He said Treasury was aware that it would need additional government support and the two bodies were working closely to finalise the actual required financial support.
But additional support is dependent on how swiftly Sasria can finalise the total claim amounts.
It is expected that the additional support will be concretised in the 2022 Budget.
“Sasria continues to play a key role in the insurance industry. We urge clients to continue and maintain their policies with Sasria and would like to assure them of our determined resilience to maintain our excellent relations”, concluded Masondo.
Compiled by Narissa Subramoney
NOW READ: Sasria already gearing up to pay out protest-related claims
Download our app and read this and other great stories on the move. Available for Android and iOS.