April 2024 is a month that will forever be carved into the collective memory of the UAE. Record-breaking rainfall brought the kind of floods we hadn’t seen in decades. Roads were impassable, properties were damaged, and families across Dubai and the wider UAE faced unprecedented challenges.
One year on, the scars of that storm still shape the way we think about risk—and about insurance.
At InsuranceMarket.ae, we supported thousands of policyholders during those difficult days. The flood wasn’t just a natural disaster—it was a wake-up call. It forced property owners, insurers, and regulators to ask: Are we truly prepared for the unexpected?
The rising cost of protection: A sign of the times
As highlighted in Gulf News, home insurance premiums in the UAE have increased by 17% from Q4 2024 to Q1 2025. This isn’t a surprise—it’s a reflection of what insurers are now factoring into their risk models.
What’s driving these increases?
Higher claims volume
The April 2024 floods triggered a surge in home insurance claims, with many involving structural damage and loss of contents. What we observed is that residential claims, in general, were processed more efficiently than commercial ones.
Changing risk models
Flood-prone areas aren’t theoretical anymore. Underwriters are now factoring in recent events and location-specific risks into pricing, especially for properties previously considered low-risk.
Global reinsurance trends
The global cost of catastrophe cover has increased sharply. Reinsurers are recalibrating their models post-COVID, post-natural disasters, and this is having a knock-on effect on local markets, including the UAE.
Delayed insurance uptake
Many homeowners only considered insurance after the damage was done. This late-stage surge in demand has shifted market dynamics and impacted how insurers manage risk across their portfolios.
While premium increases may feel like a cost burden, they are a reflection of insurers’ need to ensure sustainability, solvency, and preparedness for future events.
The real impact on stakeholders
For policyholders
What’s changed most in the last year is perception. Skipping home insurance is no longer viewed as an acceptable risk. There is a greater awareness of the gap between basic and comprehensive coverage, especially when it comes to flood and water-related damage.
For insurance brokers
The role of the broker has evolved. Today’s customer expects more than a transaction—they want guidance, clarity, and a sense of control. Providing that means breaking down coverage terms, explaining policy limits, and giving context around rising premiums. Education has become central to our advisory role.
For insurers
Claims management has become the ultimate test of trust. Customers remember how they were treated in times of crisis. Being responsive, transparent, and fair isn’t optional—it’s the new standard.
A smarter approach to risk and recovery
The events of April 2024 were a turning point for the insurance industry in the UAE. They highlighted the importance of being better prepared, not only in terms of individual coverage but also in how the industry adapts to new realities.
Moving forward, the focus must remain on evolving insurance products and services to meet the demands of a changing environment. That means aligning offerings with today’s risks, fostering stronger collaboration between insurers, policymakers, and communities, and maintaining the sector’s role as a key pillar of support in times of crisis.
At InsuranceMarket.ae, we remain committed to learning from these experiences and continually building solutions that reinforce trust, resilience, and long-term protection.
A thank you to our community
The progress made in the year following the April 2024 floods would not have been possible without the collective efforts of key stakeholders. Policyholders, insurance partners, and the dedicated team at InsuranceMarket.ae played a crucial role in navigating the complexities of a rapidly changing environment. Their commitment, adaptability, and resilience have helped stabilise the sector and restore confidence in the system.
Equal credit is due to the government agencies, municipal bodies, and emergency services whose swift, coordinated response during the flooding protected lives and property. Their leadership and professionalism laid the groundwork for a fast and effective recovery, reinforcing the strength of the UAE’s public-private cooperation model.
Final takeaway
The rain may have stopped, but the lessons it taught us continue to shape our industry. Rising premiums may feel like a burden, but they’re part of a much larger story: one of adaptation, innovation, and resilience.
Let’s continue to build on that. Let’s not just prepare for the next storm—let’s be ready to rise above it.
