Sasria, the South African public insurer specializing in political and social risks, announces the relaunch of its “Wrap Cover” product. This coverage aims to protect large companies against the rising risks related to civil unrest, riots, strikes, public disorder, and terrorism.
The scheme returns to the market nearly five years after its withdrawal, following the riots of July 2021. These events had generated compensation claims exceeding 31 billion rands (1.9 billion USD) and had deeply disrupted the global market for political violence insurance. It is in this context that Sasria chooses to reintroduce additional capacity today.
The new version of “Wrap Cover” stands out for providing excess protection beyond the primary limit of 500 million rands (29.7 million USD). It includes an additional limit of 500 million rands (29.7 million USD), albeit reduced compared to pre-2021 levels, but accompanied by reinsurance agreements in line with prudential requirements. In addition, subscription is now dedicated to large companies and governance is subject to enhanced monitoring, reflecting a cautious and rigorous approach.
Furthermore, Sasria’s financial situation has significantly improved. Its equity now stands at 18.6 billion rands (1.1 billion USD) and the insurer aims for 30 billion rands (1.8 billion USD) in capital reserves by 2029. This strength, combined with strengthened underwriting and risk governance frameworks, allows it to gradually reintroduce its excess coverage capacities to the market.
Since the withdrawal of the product in 2021, many South African companies had to turn to international markets to obtain coverage against political violence, often at much higher premiums. The relaunch of “Wrap Cover” changes the game: structured as an excess of loss (XOL) product above the primary limit of 500 million rands (29.7 million USD), it provides additional capacity to companies with significant assets and exposed to concentrated business interruption risk.
Thus, this relaunch illustrates Sasria’s renewed ability to manage large-scale risks and comes at a time when companies are expressing growing concerns about the cost and availability of insurance against political violence.
