A1257278241JlAMT

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SA History
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1950s

• 29 May 1950 Non-whites' protest against new
  apartheid laws
• 18 June 1959 50,000 South Africans not over
  slum clearance

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1960s

• 3 February 1960 Macmillan speaks of 'wind of
  change in Africa
• 25 March 1960 All black political organisations
  outlawed
• 21 March 1960 scores die in Sharpeville
  shoot-out
• 31 May 1961 South Africa becomes a republic
• 10 December 1961 Apartheid attacked at Nobel
  ceremony
• 25 May 1963 African states unite against white
  rule
• 17 June 1964 Nelson Mandela jailed for life

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1970s

• 22 May 1970 South Africa cricket tour called off
  
• 23 January 1971 Britain allowed to sell arms to
  South Africa
• 16 June 1976 Soweto protest turns violent
• 12 September 1977 Black rights leader Steve Biko
  dies in prison
• 2 December 1977 South African police cleared of
  Biko death
• 1 January 1978 Newspaper editor flees South
  Africa
• 28 September 1978 PW Botha is elected prime
  minister
• 4 June 1979 President Vorster resigns after
  'Muldergate scandal

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1980s

• 20 May 1983 Car bomb in South Africa kills 16
• 15 June 1985 First mixed marriage is
  celebrated
• 19 May 1986 South African raids wreck peace
  bid
• 25 May 1986 30,000 expelled from Crossroads
  squatters camp
• 7 September 1986 Tutu first black archbishop in
  Southern Africa

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1990s

• 11 February 1990 Freedom for Nelson Mandela
• 14 May 1991 Mandela's wife jailed for kidnaps
• 18 March 1992 South Africa votes for change
• 7 September 1992 Troops kill 24 at ANC rally
• 10 May 1994 Mandela becomes SA's first black
  president
• 2 November 1995 Ex-minister charged with
  apartheid murders
• 29 October 1998 Apartheid report accuse SA
  leaders

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FORMATION OF SASRIA

• 1976 Riots Insurance Markets excluded any
  political riots related acts
• SAIA and SA Government established a political
  risk pool with the government as Insurer of last
  resort

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Corporate Governance

• Board Appointed by the Minister of Finance
• Representative of Government on Board
• Representatives of insurance market
• Comply with Corporate Governance Code
• Comply with the PFMA

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Legislative Framework

• Short Term Insurance Act
• Companies Act
• Sasria Conversion Act

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Critical Success Factors

• Participation by the Broader Market
• Cover can only be written through Sasria
• Non Refusal
• Non Cancellable
• Government Support
• Tax Exemption at Formation
• Low premium rates
• Loss Limit Cap

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Operating Model
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Perils

• Property
• Motor
• Business Interruption (fixed costs)
• Construction Risks
• Money
• Goods in Transit

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CONVERSION OF SASRIA - 1998

• Converted SASRIA to a Limited Company
• Made the State the sole Shareholder of SASRIA
  Limited
• Allowed an actuarial determination of assets
  surplus to the needs of SASRIA
• Allowed for the payment of the determined surplus
  as a special dividend payable to the Shareholder
  to be used to off-set interest on State debt
  and
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• Allowed for the Privatization of SASRIA Limited.
• Dividends totaling approximately R11.5 billion,
  paid to Government
•  

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Exclusions

• War, invasion, act of foreign enemy, hostilities
  or warlike operations (whether  war be declared
  or not) or civil war
• Nuclear
• Chemical and Biological Terrorism

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Sasria Admin

• Underwriting
• Underlying policy assets
• Motor and BI Stand Alone Policy
• Flat Rate
• E.g. Motor US1.80 per annum
• Magnitude discount
• Claims Administration

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DISTRIBUTION CHANNEL

• Network of Agents Insurance Companies
• Intermediaries
• Agent Agreement
• Marketing
• Sales
• Administration
• Commission 20

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• THANK YOU

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