Sasria Rate Review and Minimum Premium Increase

Sasria SOC Limited (Sasria) is “a state-owned company and the only short-term insurer that provides cover to all the people and businesses that have assets in South Africa, as well as to government entities, against special risks such as civil commotion, public disorder, strikes, riots and terrorism.”

Sasria conducts an annual actuarial analysis of premium rates structure in relation to the risk exposure. Over the past five years the risk exposure has increased drastically. The past financial year has seen Sasria receive in excess of 5,443 new claims registered amounting to over R1.7b in losses.

Sasria remains committed to ensuring the company remains well capitalised and sustainable. The increased frequency and accompanying severity in losses over the last 5 years, has necessitated an actuarial analyses to be conducted at the end of the 2018/2019 financial year.

The analysis confirmed that in order to cater for this increased risk exposure Sasria rates should be reviewed. However, it is important to note that Sasria is a catastrophic loss insurer. It has therefore become necessary to review the rate for the poor performing classes.

From 1st October 2019 rates for the following classes of business will be increased:

  • Fire commercial (F2)
  • Contract works
  • Goods in transit
  • Mobile plant (M6)

Minimum premium on Fire commercial, Contract works, Goods in transit and Mobile plant will increase from R5 to R50 per month and the minimum annual premium will increase from R50 to R500.

This is not compulsory cover and may be removed from your policy on request.

The changes above will be effective as of the 1st of October 2019 on all policies as follows:

  • All new business
  • Monthly policies on their renewal or anniversary date*
  • Annual policies on their renewal or anniversary date*
  • Endorsements / Amendments (monthly and annual).

(*Please note that this rate change include renewal and anniversaries as of the 1st of October 2019.)

As Sasria will be implementing a rate increase from 1 October 2019, De Wet De Villiers Brokers wishes to inform you that our systems will change accordingly in an effort to facilitate the collection of the increased premiums.

We, therefore, have a transition period where there could be a difference between the renewal premium that was communicated on the renewal schedule and the updated renewal premium charged.

Read more from Sasria here