UAE heavy rainfall triggers a 400% surge in insurance claims
The UAE's insurance firms are facing an overwhelming volume of claims as a result of the most intense rainfall in 75 years, which increased the amount of damage mostly related to car accidents.
Businesses and homeowners are navigating a terrain of water damage and electrical concerns as a result of the unusual deluge, with some insurers reporting surges as high as 400 percent compared to prior peaks.
The unheard-of weather event has flooded insurers with claims from a variety of industries, surpassing all precipitation recorded since data collection began in 1949. CEO of Insurancemarket.ae Avinash Babur reported a four-fold rise in claims over previous wet seasons, highlighting how unique the current circumstances are and asking policyholders to exercise patience in the face of a deluge of requests for aid.
Anas Mistareehi, CEO of eSanad, echoed Babur's sentiments, predicting record-high claim submissions due to the severity of the rains. He emphasized the need for prompt reporting of damages while cautioning that coverage isn't guaranteed for all claims. The surge in submissions spans motor, property, projects, and construction categories, with motor claims dominating due to the heightened presence of vehicles on rain-soaked roads.
The executive director of Unitrust Insurance Broker, Moin ur Rehman, emphasized the substantial effect that flooding has had on auto insurance claims, especially from businesses that have been impacted by the flooding. He underlined how difficult it is for drivers to navigate flooded roads and how difficult it is for households to deal with water leaks, stressing the urgency of taking quick action to prevent more damage. It is anticipated that significant insurance claims pertaining to property, auto, and business interruption policies would result from the extensive flooding. Reinsurance may lessen losses for regional insurers, but the volume of claims will probably put pressure on profitability, especially for small and medium-sized insurers that already struggle to turn a profit on underwriting.
The historic rainfall in the UAE has triggered an unprecedented surge in insurance claims across sectors, underscoring the need for insurers to navigate the aftermath while bracing for potential financial strains in the wake of the natural disaster.
