The South African Special Risk Insurance Association has reintroduced its wrap cover product, restoring an additional layer of special risks capacity for large corporates exposed to political violence.
The product, effective 1 April 2026, is structured as an excess-of-loss layer above Sasria’s R500-million primary coupon and provides up to R500m (excluding VAT) in additional cover. This is lower than pre-2021 structures, which in some cases extended total cover to about R1.5 billion.
According to Sasria’s official communiqué to agents and intermediaries, cover under the relaunched product is limited to material damage and standing charges.
The optional wrap cover was withdrawn following the July 2021 unrest, which resulted in more than R31bn in insured losses and led to a sharp contraction in reinsurance capacity. In the absence of local excess capacity, many South African corporates turned to offshore political violence insurers, often at significantly higher cost.
Sasria chief executive Mpumi Tyikwe (pictured) said the withdrawal created significant challenges for local businesses, describing the relaunch as “a market-correcting intervention aimed at restoring locally priced risk protection”.
Sasria said its improved capital position – with own funds of R18.6bn and a target of R30bn by 2029 – has enabled it to reintroduce the product on a more measured basis, supported by revised underwriting, governance, and reinsurance arrangements.
Operationally, the placement process requires brokers to submit a proposal form, with Sasria underwriting each risk and issuing terms before cover is bound through an agent insurer.
Sasria has indicated that quotation requests will be attended to within 48 working hours, subject to the completeness of the information submitted.
A transition period will apply. Existing policies issued on or before 1 April 2026 will not need to be cancelled mid-term and may continue until renewal. Active quotations in process during April to June 2026 may proceed. New and renewing business within the wrap cover limits must be placed through Sasria from 1 July 2026.
Importantly, Tyikwe said “this is not a return to the pre-2021 status quo”, signalling a more constrained approach to providing excess cover.
The product is aimed at large corporates with significant asset concentrations and is available through Sasria’s network of agent insurers, subject to underwriting criteria.
