Sasria records over a billion rand worth of claims from public protests

Sasria, South Africa's state-owned short-term insurance company, has been facing a tumultuous period marked by a surge in claims due to public protests. Despite consistently receiving clean audits and positive financial results, Sasria recently disclosed that it had experienced one of its highest claim amounts in just a few months, exceeding over a billion rand. The Managing Director of Sasria, Cedric Masondo, shed light on the company's challenges during a recent interview with CNBC Africa. Masondo highlighted the contrasting financial performances between the years as he delved into the statistics from the 2017-2018 fiscal year. He noted that although there was an increase in the number of protests during this period, the severity of the claims did not result in substantial damage costs. This led to Sasria making an underwriting profit and achieving a net profit of one billion rand after tax. However, the tide changed in the following months, with Sasria receiving claims surpassing a billion rand in just six months. The surge in claims has been attributed to various public protests across South Africa, with a significant portion of the claims stemming from instances of service delivery-related unrest. Masondo highlighted that the claimants ranged from companies to individuals impacted by the destruction of property during riots and protests. Notably, universities were one of the few entities that had not filed claims despite previous instances of vandalism amounting to around 300 million rand due to Fees Must Fall protests. One of the major events contributing to the spike in claims was the violent incidents at Mooi River, where truck burnings resulted in significant losses. Additionally, protests in Mahikeng and Cape Town, as well as the vandalism of a mall in Mpumalanga, added to the substantial claim amounts. While Sasria was initially established to handle political riots, the recent increase in claims has largely been driven by service delivery protests rather than political unrest. Despite the financial strain caused by the surge in claims, Sasria has refrained from seeking compensation from the organizers of the events. Masondo mentioned that while there is a legal basis for recovering costs from protest organizers, Sasria has not yet pursued this route. However, he hinted at the possibility of exploring recovery options to mitigate the financial impact of the escalating claims. The challenges posed by the mounting claims from public protests highlight the complex landscape that Sasria operates in, where social unrest has a direct financial implication on the company's operations. As South Africa grapples with ongoing demonstrations and unrest, Sasria faces the formidable task of balancing its mandate to provide cover in such scenarios while navigating the financial repercussions of the surging claim amounts.