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Mon, Jan 19, 2026 | Shaban 1, 1447 | Fajr 05:45 | DXB 
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UAE: Insurance claims surge 20% after December 19 rains
Experts said the the episode was significantly less severe, unlike previous extreme weather events, as the industry is now well-prepared after the April 2024 rains
The impact of the December 19 heavy rains was well-contained with acceptable insurance claims increases of around 20 per cent, as the industry is now well-prepared, following the unprecedented rains impact in April 2024.
Industry executives said that improved drainage infrastructure, swift municipal response, and heightened awareness among residents were some of the key factors that helped contain the impact of the downpour on December 19.
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“The rainfall on December 19 had a measurable yet well-contained impact on the UAE insurance market. Unlike previous extreme weather events, this episode was significantly less severe and primarily tested operational preparedness rather than insurers’ balance-sheet resilience,” Anas Mistareehi, CEO of eSanad, told Khaleej Times.
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“From an industry perspective, all stakeholders, including insurers, brokers, and insureds, were notably better prepared, both technically and procedurally. Customer awareness has improved, leading to faster claims notifications, clearer communication channels, and more efficient engagement across the value chain. Insurers were also able to apply the operational and claims-handling lessons learned from earlier events. As a result, while claims volumes did see a temporary increase, they remained within manageable thresholds and did not create any systemic pressure on the insurance market,” he said.
Hitesh Motwani, deputy CEO of InsuranceMarket.ae, said the December 19 rainfall did have an impact on the insurance industry, but it was largely manageable.
“We saw roughly a 20 per cent increase in claims notifications compared to a normal period, mainly linked to weather-related incidents. Insurers were better prepared, response mechanisms were already in place, and customers were more informed about what to do. From an industry perspective, it was an uptick, but not a stress event,” he said.
Ralph J. Kabban, CEO of United Insurance Brokers (UIB), said the heavy rainfall on December 19 has resulted in a sharp increase in claims notifications and processing volumes across the market. “The net financial exposure for local insurers is expected to be partially mitigated through extensive international reinsurance arrangements.”
More damage – cars or properties
Kabban noted that the automobile sector is expected to generate a significantly higher volume of insurance claims following the rainfall, while the real estate sector is likely to account for fewer but more severe claims in terms of cost per incident.
“Anecdotal evidence suggests that repair garages have been operating at or near capacity, with many vehicles suffering water-related damage after becoming stranded on flooded roads, with some industry participants reporting increases of up to 70 per cent compared to prior peak periods following similar weather events,” he said.
In contrast, Kabban added, real estate claims are expected to be lower in volume but higher in severity.
Motwani added that the increase in claims was seen primarily in the motor insurance segment.
“These involved vehicles stalled in water, minor water ingress, or damage caused by driving through flooded stretches. Property-related claims were comparatively fewer and mostly limited to minor seepage or localised water damage.”
Mistareehi noted that the claims following the December 19 downpour were mixed in nature, with property and engineering-related claims being relatively more prominent.
“While some automobile-related claims were reported, they remained within acceptable and manageable levels for the market.”
Importantly, Mistareehi revealed that there were no observations of widespread structural damage or catastrophic losses.
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Losses compared to April 2024
Motwani added that the December 2025 and April 2024 events are “not comparable in scale” because April 2024 rains were unprecedented in intensity and geographic spread and resulted in significant losses across motor, property, and commercial insurance lines.
“In contrast, the December 19 rains were shorter, more localised, and better anticipated. While there was a noticeable rise in claims, the overall impact represents only a fraction of the losses experienced in April 2024.”
When compared to the impact of April 2024 rains, Anas Mistareehi said the contrast was “significant”.
“That event was a once-in-decades extreme weather incident, resulting in prolonged flooding, widespread infrastructure disruption, large-scale motor and property losses, and exceptionally high claims severity with accumulation risk across the market. By comparison, the December 2025 rainfall led to substantially lower losses, both in terms of volume and severity. Based on market observations, the overall impact was only a fraction of what the industry experienced in April 2024, and critically, there were no systemic bottlenecks in claims processing or insurer response,” he added.
According to Ralph Kabban, the April 2024 floods were significantly more severe in scale, impact, and overall losses compared to the December 2025 rainfall.
“The December 2025 rains, while disruptive, were more largely confined to urban areas. Infrastructure damage was moderate, with flooded roads and some flight delays. While total economic losses from December 2025 have not yet been fully quantified, all available indicators suggest that the financial and human impact has been substantially lower than the historic April 2024 event,” he concluded.
Waheed Abbas
Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.
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