SASRIA expects more damage claims after South African protests

South African special-risk insurer SASRIA expects an increase in damage claims following protests against undocumented immigrants. It warned that rising payouts could lead it to seek additional government funding.

SABC reported on October 10 that some claims had already been received after looting and fires. Protests affected Gauteng and KwaZulu-Natal, where buildings and vehicles were set alight.

SASRIA chief executive Mpumi Tyikwe referred to 14 or 15 damaged vehicles in Durban and another near the Constitutional Court. He stressed that cover for those losses depended on the vehicles being insured. No final value for the expected claims was given.

The insurer also highlighted lost income, disrupted trading and weaker investor confidence. A possible request for government funds was presented as a risk if claims increased further, rather than a funding decision already taken.