In the past, Sasria paid out claims related to service delivery strikes due to pre- or post-election turmoil. Recently, with ongoing political and economic uncertainty, claim patterns have changed significantly. The #FeesMustFall movement has been a large contributor to this, demonstrating a shift in protest action dynamics. Before the sector saw scattered, uncoordinated student strikes, now these have turned into organised, nationwide protests. The fact that we are seeing groups and organisations working together and reaching out to their peers in other provinces has increased the scale and severity of potential destruction or interruption. In the Western Cape, the farming sector also recently experienced intense labour unrest resulting in increased business interruption and property damage claims.
The Evolution of Policies
The current socio-economic environment has prompted us as an industry to think both reactively and more importantly, proactively, in terms of the risks we are covering. On a reactive level, we regularly assess our cover and determine if and where it was relevant, closing gaps where possible. Ongoing stakeholder engagement is also essential. Valued partners such as Bryte, together with intermediaries, are the eyes and ears of Sasria – they are able to evaluate constantly changing customer needs as well as impending risks and exposures. Proactively, we are monitoring trends in Europe, the U.S., Nigeria and Kenya related to incidences of terrorism. Examining global patterns is critical to designing effective, locally relevant policies.
Stats and Trends
The graph below reflects the number and value of claims reported during the last five financial years.
The graph below shows claims per sub peril, received during the March 2016/17 financial year.
Going forward, we expect to see increased service delivery protests and we are also monitoring the potential reoccurrence of student and xenophobic uprisings. This year’s losses from tertiary institutions alone accounted for 35% of our total severity in claims. Two of the biggest losses received from student riot claims were R75 million followed by R46 million from two prominent South African universities.
For more information, please visit our website – http://www.sasria.co.za/