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Vehicle, Property Insurance Rates May Rise After Record Rain

  • Publish date: Wednesday، 24 April 2024
Vehicle, Property Insurance Rates May Rise After Record Rain

Vehicle and property insurance rates in the UAE may see an uptick following last week's record-breaking rainfall, according to a report by S&P Global Ratings. The intense downpours led to significant damage, impacting both vehicles and properties.

Read More: UAE Records Historic Rainfall, Breaking 75-Year Record

Rising Insurance Rates

The heavy rains caused motorists to abandon their cars in flooded areas and rainwater seeped into residents' homes, causing damage. The report suggests that insurance rates, particularly for comprehensive motor policies, may increase as insurers review their pricing due to the higher frequency and severity of rainstorms.

Vehicle, Property Insurance Rates May Rise After Record Rain

High Volume of Claims

Local insurers are preparing for a high number of claims, with some experiencing a 400% increase compared to previous peaks. Many vehicles damaged during the rains may have only third-party insurance, leaving them uncovered for natural disasters such as flooding.

Read More: Abu Dhabi and Dubai Lashed by Heavy Rain and Thunder

Managing Motor and Property Damage

Claims related to motor and property damage are expected to constitute the majority of losses for local insurers. Most UAE insurers have strong capital and liquidity buffers, which should help them handle these claims and minimize overall impact.

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