South Africa’s state insurer to raise cover for unrest following riots

South Africa’s only insurer covering political violence will increase its premiums to cover a rise in reinsurance costs following some of the worst unrest in decades, the head of the state-owned company told Reuters.

More than 300 people died and around 3,000 stores were looted when protests and violence erupted in July, sparked by the imprisonment of former President Jacob Zuma but later driven by anger over poverty and inequality.

Sasria, which was set up after private firms stopped underwriting risk relating to political violence during apartheid, currently estimates claims related to the unrest at 18 billion rand ($1.19 billion), according to a presentation on Monday.

It is relying partially on reinsurance contracts to pay, and the cost of those contracts is now increasing, managing director Cedric Masondo told Reuters by phone.