In the wake of the UAE’s heaviest rainfall in 75 years, insurance companies are grappling with a monumental surge in claims, with some reporting a staggering 400% increase compared to previous peaks, Khaleej Times reports.
The relentless downpour, which persisted from late Monday through Tuesday night, has inundated various sectors with claims pouring in for motor damages, water-related issues, and electrical damage. Avinash Babur, CEO of Insurancemarket.ae, expressed concern, stating, “It’s going to be an unprecedented time for the insurance industry.” Babur emphasized the need for policyholders to report damages promptly.
Anas Mistareehi, CEO of eSanad, echoed these sentiments, anticipating record-breaking levels of claims. Mistareehi estimated a surge of at least 50% in claims compared to previous events, with a particular focus on water damage and electrical issues in homes and businesses.
The surge in claims spans multiple sectors, including motor, property, projects, and construction. Moin ur Rehman, executive director of Unitrust Insurance Broker, highlighted the severity of the situation, noting, “The impact on insurance claims reflects the severity of the weather event.” Rehman revealed a significant increase in motor insurance claims, with some companies experiencing up to a 70% surge compared to prior peaks.
Mohammed Ali Londe, a vice-president and senior analyst at Moody’s Ratings, underscored the pressure on insurers due to widespread flooding. Londe emphasized that while reinsurance may mitigate some losses, it could lead to higher prices in upcoming renewals.
