Sasria considers expanding coverage to include natural disasters and climate risks

The SA Special Risk Insurance Association (Sasria) is exploring the expansion of its coverage options to include climate, severe weather, as well as cyber risks.

Sasria is a state-owned non-life insurer that provides special risk cover – including civil commotion, public disorder, strikes, riots and terrorism – to all individuals and businesses that own assets in South Africa (SA), as well as government entities.

The Association’s consideration to extend its cover to natural disasters and climate-related risks comes as its financial reserves have been considerably strengthened, while at the same time, several regions in SA have suffered severe damage caused by floods and drought.

In his foreword to Sasria’s 2023/24 annual report, which was presented to parliament last week, finance minister Enoch Godongwana highlighted the improved financial stability of Sasria.

As a result, Sasria is actively collaborating with the government, regulators, and other relevant stakeholders “on potential ways to expand its coverage. During 2023/24, these engagements centred [on] possibly extending Sasria’s coverage towards climate risks, extreme weather and cyberattacks”.

To implement this change, an amendment to the Sasria Act would be necessary.

“The intent is to develop a natural disaster pool in the medium to long term, in partnership with the private sector, to provide cover for floods, droughts and other climate-related impacts,” Sasria chair Nolwandle Mgoqi said in her statement in the annual report.

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