The United Arab Emirates insurance sector is demonstrating increased operational maturity by implementing stricter claims assessment protocols following severe weather events in April 2024 and December 2025. Industry leaders report a significant shift in how motor insurance claims are being processed, particularly regarding flood-related vehicle damage.
According to Ralph Kabban, CEO of United Insurance Brokers (UIB), insurers are applying more rigorous policy interpretations with growing numbers of claims being rejected on grounds of policyholder negligence. This includes driving into known flooded wadis, designated high-risk zones, or heavily inundated roads where specific coverage exclusions typically apply.
The market evolution is twofold: while insurers are enhancing their catastrophe-response frameworks, consumers are simultaneously becoming more informed about insurance products. Anas Mistareehi, CEO of eSanad, notes that customers now demonstrate greater awareness of policy exclusions, deductibles, and the critical importance of comprehensive motor and property coverage.
This increased consumer sophistication has led to measurable behavioral changes. InsuranceMarket.ae’s deputy CEO Hitesh Motwani observed that improved warning systems and coordinated communication between government authorities and residents during the December 2025 rains significantly reduced risk exposure and subsequent insurance losses.
Market data indicates a noticeable trend of motorists upgrading from basic third-party policies to comprehensive coverage, alongside increased uptake of home contents insurance among tenants. These shifts reflect heightened public awareness of climate-related risks following recent extreme weather events.
The insurance sector has simultaneously strengthened its operational capabilities. Companies have developed surge capacity for claims assessment, improved intermediary coordination, and enhanced customer communication strategies during peak claim periods. Regulatory oversight from the Central Bank of the UAE has further reinforced the industry’s commitment to timely settlement of legitimate claims.
Industry executives characterize the December 2025 weather event as a stress test that validated the market’s resilience while highlighting the importance of data-driven underwriting and proactive customer education in an evolving climate landscape.