Strike and protest action in South Africa

Strike and protest action in South Africa is becoming increasingly violent
South Africa has been rocked by violent service delivery protests and riots, causing extensive damage to businesses and consumers who are at risk of incurring significant losses should their insurance coverage not have been extended to include cover for damage and business disruption as a result of strikes, riots and civil commotion available through Sasria.
From January 2013 to 9 Feb 2014, South Africa recorded a staggering 430 service delivery protests – an average of 33 per month, or one per day according to the Institute for Security Studies. Gauteng leads by a massive margin in terms of violent protests, followed by KZN and Limpopo. At least 10 people have died during such protests, and both government and private property have been seriously damaged, with protesters setting fire to government buildings, private properties, homes of government officials and vehicles caught in the fray.
According to Graeme Fuller, Quality & Technical Specialist at Aon South Africa, standard insurance policies available through private sector insurers do not provide cover for damage to assets as a result of these types of events as they are precluded from underwriting these risks. “Cover is available in South Africa through the state-owned insurer – Sasria SOC Limited.” “Sasria, which was originally founded to provide cover for politically motivated riots, covers damage caused by riot (both political and non-political), public disorder, including labour disturbances, civil unrest, strikes and lockouts.”
“It is the only organisation in South Africa authorised to provide insurance cover for losses caused as a result of these types of events,” explains Graeme. According to Sasria’s 2013 annual report, its claims frequency increased by 91% driven primarily by labour strikes, while claims severity increased by 135% compared with 2012. Sasria’s importance seems clearer than ever as the uncertainties in the socioeconomic environment mean that “special risks” as defined in Sasria’s terms of reference, have become a permanent part of the risk management landscape as the challenges of industrial action, workplace disruption, social unrest and service delivery protests proliferate.