Our Actuarial & Insurance Solutions (AIS) team are pleased to present you with our latest industry update for 2021. This comes on the back of some rather turbulent times for South Africa and for the non-life industry in particular.
When we originally penned our update in June, Covid-19 was the primary calamity being faced by the insurance industry, and I did not expect that we would have to hold back our update to be able to include details on the second insurance catastrophe of the year.T
he social unrest that took place in primarily Kwazulu-Natal over July rocked our communities, businesses, economy and country at large, with an estimated impact on national GDP of around R50bn. All eyes are now on Sasria, as the country’s sole insurer of civil unrest, rioting and looting. Sasria’s ability to withstand this massive shock, and support the recovery and rebuilding of our economy through insurance pay outs is of critical importance.
In this update we have included a dedicated writeup of Sasria’s business model and product features, in an attempt to shine light on some commonly asked questions. We further unpack Sasria’s ability to be able to “take this punch” and meet the anticipated notified claims of around R18bn – R20bn.
Our update further includes a number of interesting topics dealing with Covid-19 BI claims, the dedicated role of the actuary under IFSR 17, an overview of the PA’s published Life and Non-life industry results and an update on the microinsurance regulatory requirements.