GENERAL UPDATE Presented by Mokgadi Sebola Customer Relations Officer FIA Road show

Introduction  Sasria SOC Limited is a short term insurer for special risks such as riots, strikes, terrorism  Sasria is the only insurer for special risks in SA  It was formed as a direct result of the 1976 uprisings  It has been in existence for over 30 years

Current Product offering Primary Coupon R500m Coupon = MD + SC or WE

Current Business Interruption Current Business Interruption  Fixed costs of the business – no net profit Method of arranging Sasria BI  Specified Standing Charges  The List of Standing Charges must be provided  There must be a Sasria Material Damage Coupon in force covering the same interest and period  The Sum Insured must represent the list of specified standing charges (Not the Conventional Policy Sum Insured)  Uninsured Working expenses  The List of Uninsured Working Expenses must be provided  The Sum Insured must represent the insured working expenses (Not the Conventional Policy Sum insured) (Not the Conventional Policy Sum insured)  Accepted formula: GP – NP = WE

New Business Interruption  Effective 1 st Sept 2012 net profit cover available within the R500m Coupon ONLY R500m Coupon ONLY  There must be a Material Damage Coupon to which the BI cover will attach – not available on its own cover will attach – not available on its own  SC/WE cover still available without the full BI cover  Current SC/WE rates applicable to the full BI  No extensions

New Business Interruption New Business Interruption  Policy wording: To be finalised and will be communicated during the road shows & before the launch  Regulation: The Regulations are currently being finalised.  Cover: Cover is now comprehensive, but it excludes extensions. Clients still have an option to take only the current SC/WE cover only, in which case the rate would be applied to the SC/WE value.

New Business Interruption New Business Interruption  Rating: Rates are as per the SC/WE, the difference will be the sum insured that the rate is applied to if the full BI(higher sum insured) is taken  Existing insurances: With the new product in place, this has to be purchased from Sasria unless dispensation is obtained

Business Interruptions Business Interruptions  Uninsurable extensions (Additions)  Fines and penalties  Prevention of access  Public utilities  Public telecommunications  Accountants clause  Accumulated stock clause  Output clause  Incompatibility cover

Customer Relationship Management

General update Customer Relationship Management  Due to the Sasria business model, partnership between Sasria, agent companies as well as brokers is critical in providing excellent service as well as adequate insurance covers to our mutual clients.  Effective functioning of the value chain is of key importance to Sasria, hence the establishment of the Stakeholder Management Division.  To further improve the interaction between Sasria and its distribution channel, Sasria developed and implemented a Customer Web Portal (CWP). The portal has a document management facility for claims administration, underwriting administration, and e-coupons.

General update Customer Relationship Management  Understand the industry needs and devise means of meeting same  Technical support  visits to Agents and Brokers  assistance with Regulations  Compliance with audit findings  Dissemination of product knowledge to all stakeholders  Agent/Broker specific product training sessions  Industry product training session

Zandspruit service delivery protest, 2011 (Source: News24)

Changing Environment Change in trend  South Africa has experienced prolonged industrial action which could pose a risk to economic growth and investment  Social media used to arrange protests  High unemployment (25%) which will have catastrophic consequences to our society  Unemployment among the youth and graduates is a worrying factor, this may lead to uprisings similar to Arab uprisings  Misguided economic views because of anger and no hope from our youth  Social needs – increase in service delivery riots  Human rights violations  Increasing food prices / food security concerns

Claims Procedure

Claims Notifications Claims Registration  Required documentation  Preliminary Claims advise Form  Sasria Coupon/Policy  Underlying Policy Schedule  Claim Form  Quantum documents (quote, invoice, etc)  Additional documentation  Duties of the Agent

Claims Procedure  Preliminary Claims Advise Form  Must be submitted with all first notification documents.  Must be completed in full.  Sasria Coupon/Policy  Legibility  Period of Insurance and Risk  Backdating  Underlying Policy Schedule  Non-Motor - Cover details  Motor – stand alone

Claims Procedure  Claim Form  Agent’s claim form  Insured’s statement  Glass claim form NB: Claims less than R50K are fast track claims  Quantum documents  At least two quotes  Invoices  Clearance Certificate  Additional documentation  Endorsements to the Coupon  Deductibles

Claims Procedure  Salvage  No party to salvage contracts  Prescription  Non-motor  Motor  Sasria Release  Payments

Claims statistics: 2011/2012 Description period ended 31 March 2012 period ended 31 March 2011 New claims Closed claims Number of outstanding claims (end of financial year) Average age of closed claims 90 days 127 days Loss ratio 19.64% 22.60% Note: 1. A high number of claims were received in 2011/2012 mainly due to the : taxi strike, truck driver strikes, and disgruntled commuters 2. Despite the increase in claims frequency, the claims severity was better than last year. The double digit loss ratio for second year in a row confirms the new claims trends as well as an upward movement in claims submitted 3 Loss ratio as at end March 2012 is 22%

Claims statistics: 2011/2012 Claims outstanding per peril: end March 2012

Thank you