{"id":855669,"date":"2026-04-06T10:00:00","date_gmt":"2026-04-06T08:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=855669"},"modified":"2026-04-02T18:52:41","modified_gmt":"2026-04-02T16:52:41","slug":"state-owned-company-relaunches-product-to-protect-south-africa-from-social-unrest","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/855669\/state-owned-company-relaunches-product-to-protect-south-africa-from-social-unrest\/","title":{"rendered":"State-owned company relaunches product to protect South Africa from social unrest"},"content":{"rendered":"\n

Sasria has relaunched its Wrap Cover, which provides large corporate insurance against escalating risks linked to civil commotion, riots, strikes, public disorder, and terrorism.<\/p>\n\n\n\n

Sasria is a state-owned company created in\u00a01979\u00a0following the aftermath of the 1976 Soweto Uprising and is designed to cover South African businesses against strikes, riots and public disorder. <\/p>\n\n\n\n

The Wrap Cover product has returned to the market nearly five years after it was withdrawn following the July 2021 unrest. <\/p>\n\n\n\n

The July 2021 unrest led to damages exceeding R31 billion and reshaped the global insurance market for political violence. <\/p>\n\n\n\n

Sasria said that the product’s reintroduction highlights a renewed ability to handle large-scale risk and occurs amid growing concerns among businesses about the cost of political violence insurance.<\/p>\n\n\n\n

The product is structured as an excess-of-loss product above Sasria’s R500 million primary coupon. <\/p>\n\n\n\n

The cover offers additional insurance capacity for companies with large asset bases and concentrated business interruption risk.<\/p>\n\n\n\n

South African companies had to turn to international markets to obtain political violence cover after the product was withdrawn in 2021, often at far higher premiums. <\/p>\n\n\n\n

\u201cThis created an unsustainable situation for companies operating in South Africa,” said Sasria Chief Executive Officer\u00a0Mpumi Tyikwe. <\/p>\n\n\n\n

“The Wrap Cover represents a\u00a0market-correcting intervention\u00a0aimed at restoring locally priced risk protection.\u201d<\/p>\n\n\n\n

Tyikwe added that the lack of locally available excess capacity forced large South African businesses to rely on offshore political violence insurance, often at multiples of historic prices. <\/p>\n\n\n\n

For many, that pricing reflected global reinsurance volatility rather than South Africa\u2019s underlying risk profile. <\/p>\n\n\n\n

Better financial standings<\/h2>\n\n\n
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Sasria said the decision to relaunch the product follows the strengthening of its financial standing and capital base, with funds rising to R18.6 billion. <\/p>\n\n\n\n

Sasria said that it is on track to achieve its R30 billion capital reserves target by 2029. The enhanced capital position is complemented by improved underwriting and risk governance frameworks. <\/p>\n\n\n\n

These developments have allowed the state-owned entity to cautiously resume gradually returning excess cover capacity to the market. The relaunched Wrap includes: <\/p>\n\n\n\n