Sasria notified De Wet De Villiers Brokers that following the magnitude of the losses suffered due to the recent civil unrest, violence, and looting, they will be implementing a rate increase to specific classes of business with effect from 01 January 2022.
Sasria confirmed that they have concluded the technical rate review internally and engaged the various stakeholders necessary to finalise the implementation of the proposed rate structures.
As communicated by Sasria:
In view of the discussions, Sasria has deemed it prudent to amend the effective date of the rate increase to 1 January 2022.
Domestic dwellings have not been affected, however the basic F2 – Fire Commercial rate on commercial buildings has been increased to 0.02906% (from 0.0174%).
A new category ‘F2 – Fire Commercial (Office)’ has been introduced for commercial buildings occupied as offices with a lower rate of 0.02088%.
Sasria is committed to ensure the principles of Treating Customer Fairly and the PPR regulations are adhered to in all our endeavours, as such, the following changes will be implemented together with the rate increase.
1. Classes with no rate increase:
Sasria conducts an annual rate review and factors loss patterns over a number of years. The recent catastrophe event losses were considered, but they are not the basis on which the increases were determined. The affected lines of business have traditionally been affected by high frequency and severity claims. Lines of business that have not portrayed an increase in losses over the past 3 to 5 years are excluded from the increase and therefore, we are not increasing rates on the following classes of business:
2. Structural risk rating changes
Our rate review has indicated the need for a change in structure of M2 (Light Commercial vehicles) and M3 (Taxis). These classes are currently rated at a flat rate of R45.39 per annum and henceforth will be rated on a rating scale in order to price the risk on the correct value at risk to Sasria.
3. New rating class
The claims volatility on Municipalities has warranted a review on the rating structure for this risk. We are therefore, introducing a new rating class “MUN” specifically for all Municipal related risks to be added with its own risk profile.
4. Separation of F2 (Fire commercial)
The F2 (Fire commercial) class of business is amongst the hardest hit in terms of severity of claims, however, the rate review exercise has shown that the risk within “office premises” exhibits a different risk profile to the rest of the Fire risk. As such, we are introducing a separate rating structure for F2 (Fire commercial – Office). This rate is exclusively applicable to commercial Office Premises risks.
5. Applicability of the rate increase
The new rates become effective on 1 January 2022 (Inclusive) as follows:
- All new business
- Monthly policies on their annual anniversary date
- Annual policies on their annual anniversary date
The following are the new annual increased rates:
Rating Code |
New Rate (VAT Incl.) |
CW – Contract Works |
0,08661% |
F2 – Fire Commercial |
0,02906% |
F2 – Fire Commercial (Office) |
0,02088% |
GIT – Goods in Transit |
0,17408% |
M2 – Light Commercial Vehicles |
0,07062% |
M3 – Taxis |
0,02130% |
M5 – Buses |
0,56499% |
M6 – Mobile Plant |
0,05663% |
M8 – Heavy Commercial Vehicles |
0,34506% |
MUN – Municipalities |
0,02958% |
The below is an illustration of the Rate Review Impact on premium per annum exclusive of VAT.
F2 - Fire |
||
Sum Insured |
Current Premium |
New Premium |
100 000 |
15.13 |
25.29 |
200 000 |
30.26 |
50.57 |
500 000 |
75.65 |
126.43 |
1 000 000 |
151.30 |
252.86 |
2 000 000 |
302.61 |
505.72 |
M8 – Heavy Commercial Vehicles |
||
Sum Insured |
Current Premium |
New Premium |
100 000 |
16.34 |
300.05 |
200 000 |
32.68 |
600.10 |
500 000 |
81.70 |
1 500.25 |
1 000 000 |
163.39 |
3 000.49 |
2 000 000 |
326.78 |
6 000.98 |
M2 – Light Commercial Vehicles |
||
Sum Insured |
Current Premium |
New Premium |
100 000 |
39.47 |
61.41 |
200 000 |
39.47 |
122.82 |
500 000 |
39.47 |
307.05 |
1 000 000 |
39.47 |
614.09 |
2 000 000 |
39.47 |
1 228.19 |
M3 - Taxis |
||
Sum Insured |
Current Premium |
New Premium |
100 000 |
39.47 |
50.00 |
200 000 |
39.47 |
50.00 |
500 000 |
39.47 |
92.59 |
1 000 000 |
39.47 |
185.19 |
2 000 000 |
39.47 |
370.38 |
We encourage you, as a valuable client of De Wet De Villiers Brokers, to engage with us in the event you have any questions or require additional information in this regard. info@dwdv.insure or call us on 014 592-1077.