South Africa’s state-owned insurer, Sasria, has built a financial buffer of R20 billion to prepare for any future unrest. This move comes just four years after the July 2021 riots in KwaZulu-Natal and Gauteng, which left 354 people dead and caused widespread destruction. At the time, Sasria had to cover claims worth R32 billion, turning to the government for R22 billion in emergency funds.
The insurer, which specialises in cover for politically motivated damage, public disorder and terrorism—areas most private insurers avoid—has now positioned itself to handle another large-scale crisis without needing taxpayer support. Sasria was established in 1979 following the Soweto uprising and has since played a critical role in covering risks related to civil unrest.
Since the 2021 violence, demand for Sasria’s policies has surged. Premium revenue has jumped 88%, and despite regional differences in claims, Sasria maintains uniform pricing across provinces. Thanks to the calm 2024 national elections, the insurer secured 15 new reinsurers and is now preparing to double individual policy limits to R1 billion.
Sasria is also exploring expanding its cover to areas like fire risks for public entities and climate-related disasters. However, these new responsibilities would require more government support and changes to existing legislation. The insurer is determined to adapt to South Africa’s shifting risk landscape—without repeating past mistakes.