Budget2022 | Despite having a R3.5 billion funding gap, SAA will not be receiving a lifeline from National Treasury. | Fin24
The civil unrest in parts of KwaZulu-Natal and Gauteng last year led to a large number of claims from the South African Special Risk Insurance Association , which provides insurance for risks such as strikes, riots, and terrorism. Claims amounted to R32 billion, and Sasria was unable to meet the obligations with its available resources.
Sasria will also be increasing its premium prices, review its reinsurance arrangements, and find new ways to increase its client base in order to respond to risks without having to rely on government. The R5 billion transfer to Land Bank is unlikely to materialise in 2021/22 owing to delays in concluding negotiations with lenders, according to the budget review. As a result, the contingency reserve for 2022/23 has been increased for the R5 billion to be paid in the new financial year. The provision of this funding is conditional."Conditions for the release of these funds have not yet been met," the budget review read.
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