The heavy rains that fell on 19 December 2025 has led to increases of around 20% in claims, a level regarded as 'acceptable' by the insurance sector, according to industry executives.
Industry executives said that improved drainage infrastructure, a rapid municipal response and increased awareness among residents since the unprecedented April 2024 floods were among the key factors that helped contain the impact of the rainfall on 19 December, reported Khaleej Times.
Mr Anas Mustarihi, CEO of eSanad, a digital insurance marketplace, told the newspaper, “The rainfall on 19 December had a tangible but well-contained impact on the UAE insurance market. Unlike previous extreme weather events, this wave was significantly less severe and primarily tested the operational readiness rather than the resilience of insurance companies’ balance sheets.”
He added: “From an industry perspective, all stakeholders, including insurers, brokers and policyholders, were significantly better prepared, both technically and procedurally. Customer awareness improved, leading to faster claim notifications, clearer and more efficient communication channels and more efficient interaction across the value chain. Insurers were also able to implement operational and claims-handling lessons learned from past events. As a result, while claim volumes saw a temporary increase, they remained within manageable thresholds and did not create any systemic pressures on the insurance market.”
On his part, InsuranceMarket.ae Deputy CEO Hitesh Motwani said that the December rains resulted in a largely manageable impact on the insurance sector. He added, "We saw an increase of approximately 20% in claim notifications compared to the normal period, mainly related to weather-related incidents." He confirmed that the increase in claims was seen mainly in the motor insurance sector.
December 2025 vs April 2024
Mr Motwani added that the December 2025 and April 2024 events "cannot be compared in scope" because the April 2024 rains were unprecedented in their intensity and geographical spread and resulted in significant losses in the auto insurance, real estate and trade sectors.
He said: "In contrast, the 19 December rains were shorter, more localised, and better predicted. Although there was a significant increase in claims, the overall impact represents only a small fraction of the losses that occurred in April 2024."