Insurers in the UAE are increasingly becoming stricter and rejecting claims due to negligence of motorists while driving in flooded wadis as the local insurance market matures.
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Industry executives say consumers are also more aware now, following the heavy rains of April 2024 and December 2025, and opting for more comprehensive policies.
Higher repair costs, advanced automotive technologies, and electric vehicles are pushing insurance costs higher; hence, insurers are increasing the rates as well.
“Insurers are also applying stricter policy interpretations, with a growing number of claims declined on the grounds of negligence — such as driving into known flooded wadis, designated high-risk zones, or heavily flooded roads where coverage exclusions may apply,” said Ralph Kabban, CEO of United Insurance Brokers (UIB).
Anas Mistareehi, CEO of eSanad, said the industry has reached a higher level of operational maturity. “Insurers have strengthened catastrophe-response frameworks, including surge capacity for claims assessment, improved coordination with intermediaries, and clearer customer communication during peak events,” he said.
Hitesh Motwani, deputy CEO of InsuranceMarket.ae, stated that one important factor during the December 19 rains was preparedness and communication between different stakeholders.
“Government authorities issued timely warnings, weather forecasts were continuously reported, and alerts were sent directly to residents’ phones. This helped people take precautions, avoid unnecessary travel, and reduce exposure to risk. From an insurance perspective, this shows how early warnings, awareness, and coordinated responses can significantly limit losses,” added Motwani.
Awareness of weather-related risks
Anas Mistareehi said risk awareness has improved meaningfully.
“Customers today are far more conscious of policy exclusions, deductibles, and the importance of having adequate and comprehensive motor and property coverage. This shift has contributed to faster reporting, more realistic expectations, and smoother claims handling.
Due to growing awareness, Ralph Kabban said there has been a noticeable increase in motorists upgrading from third-party to comprehensive motor insurance, as well as a rise in tenants purchasing home contents insurance for the first time, reflecting heightened awareness of weather-related risks.
He added that regulatory oversight has also been evident, with the Central Bank of the UAE issuing reminders to insurers on the timely settlement of valid claims.
Overall, the December 19 rains have served as a stress test for the operational resilience, solvency, and capital buffers of smaller insurers in the market.
Echoing his peer, Anas Mistareehi of eSanad said December 19 was a stress test, not a shock. “It reinforced the value of preparedness, data-driven underwriting, and proactive customer education in an evolving climate environment,” he concluded.
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