Pakistani insurer Adamjee Insurance Company has reported a significant loss of approximately PKR500m ($1.8m) due to claims, especially in the motor portfolio, resulting from the catastrophic flooding in Dubai in April 2024. The company's Pakistan operations are, however, profitable.
Adamjee Insurance Company is one of the largest insurance company in Pakistan. The floods in Dubai had wreaked havoc across the UAE and particularly in Dubai. The Pakistani insurance company has a substantial presence in the UAE market.
The April 2024 floods in Dubai were part of a larger pattern of increasingly severe weather events affecting the Arabian Gulf region. Dubai had already experienced what was then described as the heaviest rainfall in 75 years. Some areas recorded more than 250mm of rain in less than 24 hours, far exceeding the country’s average annual rainfall of 140-200mm.
According to an estimate between 30,000 and 50,000 vehicles were damaged in the UAE, mostly concentrated in Dubai. Only the vehicles with comprehensive policies were covered by insurance companies as third-party only policies do not cover Nat CAT perils.
After the event, Guy Carpenter in an advisory report had said that one may see some impact on the original insurance policies and reinsurance arrangements to cater for such an event.