A vast majority of insurance claims from the rains and resultant flooding in the UAE has been settled.
The rains caused massive flooding in cities like Dubai, Sharjah and other northern emirates resulting in losses to properties and vehicles. Guy Carpenter had reported that the flooding caused serious damage to infrastructure such as roads, vehicles, buildings, and public facilities, requiring significant resources for repair and restoration. Many residential and commercial properties, including malls, warehouses, and industrial units, were affected. Businesses suffered financial losses due to disrupted operations and property damage
"According to global ratings agency S&P, the total insured loss -- as estimated by various market experts could be between $1.5bn to $2.5bn – but of which the majority is reinsured in the international market. S&P therefore expects a relatively modest net impact on bottom line results of local insurers." said, S&P Global Ratings director of insurance ratings Emir Mujkic.
Speaking to the Khaleej Time, Policybazaar.ae business head Toshita Chauhan said that insurance firms had a huge number of claims requests that were registered after the record 16 April rains but the majority of claims were evaluated and successfully paid out within 3 months. “The overall ecosystem helped and customers were extremely understanding and patient as garages were full. The worst is over. The impact is now on premiums,” she said.
Low insurance penetration at 2.75% in the UAE, indicates that there is a lack of sufficient insurance coverage in the market which needs urgent attention.