South African State insurer builds $1.1bn buffer for riots

South Africa’s State-owned risk insurer, which the government bailed out so it could meet claims stemming from riots four years ago, has built up a R20-billion buffer to safeguard its finances in the event of anticipated future unrest.

Sasria SOC had to pay out about R32-billion following the July 2021 turmoil in the KwaZulu-Natal and Gauteng provinces and turned to the State for R22-billion to meet its obligations.

Some 354 people died in the upheaval, which was triggered by former President Jacob Zuma’s imprisonment on contempt charges and tapped into widespread discontent over unemployment and poverty.

“All the ingredients for a protest are in place — someone just needs to light the match,” Mpumi Tyikwe, the insurer’s chief executive officer, said in an interview in Bloomberg’s Johannesburg office last week.

“We can handle a significant event now. I think anything up to R20-billion Sasria would be able to handle