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Rains in UAE: No immediate rise in insurance premiums, say insurers
While recent rainfall has led to a temporary uptick in claims, insurers are continuing to assess developments over a longer period rather than reacting to isolated events
- PUBLISHED: Thu 26 Mar 2026, 2:57 PM
[Editor's Note: Follow Khaleej Times live blog for the latest updates as the UAE deals with heavy rains and unstable weather conditions.]
Insurance premiums have remained largely stable as heavy rains lash across the UAE, with insurers saying they do not foresee material changes in policy terms driven specifically by weather-related claims.
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Industry executives say claims related to adverse weather are largely episodic, and are not reflective of a sustained trend.
“We do not foresee any fresh or broad-based increases in premiums or material changes in policy terms driven specifically by weather-related claims,” Toshita Chauhan, Chief Business Officer of General Insurance at Policybazaar, told Khaleej Times.
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She added that while recent rainfall has led to a temporary uptick in claims, insurers are continuing to assess developments over a longer period rather than reacting to isolated events. The market remains supported by strong underwriting practices and reinsurance structures, which help absorb short-term shocks without immediately impacting customers.
Ibrahim Karam, CEO of R2S Insurance Brokers, echoed the sentiment, saying that there has been “no immediate market wide premium increase directly linked to any single rain event.” However, periods of heavy rain tend to see a higher level of car insurance claims compared to average monthly levels, he added.
Defined and explicit terms
While insurance premiums remain stable as of now, Karam said that extreme weather-related losses are shaping how UAE insurers are defining terms and policy wording, which are now becoming more explicit. “Insurers are placing greater emphasis on location exposure, past claims history, vehicle usage patterns, and property resilience,” he said. “In home insurance, deductibles related to water damage are under closer review, and flood definitions are being clarified to reduce uncertainty and disputes.”
Home insurance claims are more complex. They remain lower in volume and typically cost higher to resolve because of potential water damage to permanent fixtures and electrical systems.
Homeowners and motorists have also considered upgrading existing policies, especially after the April floods in 2024, which caused extensive damages to personal property. Khaleej Times previously reported that insurers lost up to Dh9.175 billion following the adverse weather, many of which were paid out.
In the long run, pricing models are likely to adjust in a more “targeted manner” should severe weather become more common, the CEO added, rather than through broad premium increases. “The focus remains on clearer policy terms, better risk differentiation, and informed customer choices,” he said.
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.