Specialist national insurer Sasria sparked a storm with its announcement that it would not cover claims related to national electricity grid failure -- followed by a backtrack after complaints about a lack of consultation.

Former Sasria CEO Cedric Masondo, who worked at the company for 11 years, was particularly scathing when he addressed the topic at a PSG Konsult conference in Sun City.

"If there's a grid failure, it's likely to be followed by looting, riots and damage," said Masondo.

"If Sasria is successful in implementing this grid failure exclusion, it means millions of properties and businesses will not be protected. What will be the impact on the economy? It's easy to walk away from the problem, without trying to find a solution."

He went on: "Sasria's job is not to walk away. Its job is to come up with capital to ensure that, if there is grid failure and riots, businesses will be protected."

July 2021 riots

Masondo was at Sasria when the insurer faced a deluge of claims after the July 2021 riots in KwaZulu-Natal and Gauteng, with damage estimated at R40-billion.

At the time, Sasria met the South African Revenue Service and was told that if Sasria did not settle claims as quickly as possible, it would have an impact on the National Budget.

Masondo revealed that, after the riots, he approached insurers to ask if they would be willing to...