Insurance claims of unrest in South Africa have reached up to $ 680 million from public insurers

JOHANNESBURG, July 14 (Reuters) Claims for damage and theft at businesses affected by civil unrest in South Africa are expected to be between 7 and 10 billion rand ($ 481 to $ 683 million), the head of the only insurer covering political violence in the country told Reuters.

Days of riots and looting have left more than 70 dead, injured thousands of businesses and damaged major infrastructure in the worst civil unrest in decades.

Triggered by the jail of ex-President Jacob Zuma last week after he failed to appear for a corruption probe, it has turned into a wave of anger over poverty and inequality.

Sasria, a public insurer established after private companies ceased to underwrite risks related to political violence due to unrest during apartheid, has so far received around R100 million in claims, told Reuters its general manager Cedric Masondo, adding that this is expected to increase. significantly.

The company, the only insurer to offer coverage for such risks, expects total claims of up to R10 billion, or R12 billion in the worst case, making unrest likely the event. largest in terms of claim value since Sasria. was established in 1974, continued Masondo.

It is the worst in terms of financial scale, he said.

Masondo said that while Sasria has reinsurance coverage that reaches high numbers and can fund up to R10 billion in claims from its own balance sheet, it only covers customers up to a threshold of R500 million. rand.

This means that small businesses are likely to have their losses fully insured, while larger businesses that have sustained significant damage will likely have to shoulder some of the costs themselves.

Some 40,000 businesses have been affected in Ethekwini municipality alone in KwaZulu-Natal province alone, with damage in the region estimated at R15 billion, according to its mayor.

The violence was concentrated in KwaZulu-Natal, the homeland of Zumas, as well as in the economic and financial center of the country of Johannesburg and its surroundings in the province of Gauteng.

($ 1 = 14.6309 rand) (Reporting by Emma Rumney; Editing by Olivia Kumwenda-Mtambo and Toby Chopra)

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