UAE: Some Insurance Firms Raise Premiums by up to 30% After Heavy Rains | Khaleej Times
Insurance companies in the UAE have increased premiums by up to 30% following the unprecedented heavy rains recorded in mid-April. The heavy rainfall, which occurred on April 16, led to significant flooding in several parts of the country, including Dubai, Sharjah, and Ajman. This resulted in a surge in vehicle and home insurance claims, with some firms reporting up to a 400% increase in claims.
As third-party liability (TPL) insurance does not cover damages caused by natural disasters, many property and vehicle owners have been compelled to switch to more comprehensive and, consequently, more expensive insurance packages. This shift has led to a notable 100% increase in demand for comprehensive insurance coverage.
Faisal Abbas, Vice President for Employment Benefits and General Insurance at The Continental Group, shared insights on the current market trends:
"We anticipate a further increase in insurance premiums in the third quarter or by the fourth quarter of this year as the industry adjusts to the heightened claims and overall impact of the recent heavy rains."