The United Arab Emirates in cities such as Dubai, a global financial and business centre, has experienced its heaviest downpour resulting in widespread flooding and causing damage to property, assets and disrupting travel plans.

There have been numerous social media updates on the aftermath of the weather, with some videos showing vehicles being swept off the roads, shops flooded, ceilings collapsing as water inundated one of Dubai’s most popular malls.

What does this mean for insurance companies? For one; an insurgence of catastrophic claims

High value building, assets and structures in Dubai translate to massive financial losses there is an impact on individual, organisational and investor wallets. Therefore, because of the concentration of the area, with most local insurers taking a sizable chunk of the business to a maximum appetite, means insurers and reinsurers capital is exposed when it comes to claims and payouts of massive levels, albeit claims being recoverable. As Maksure Risk Solutions, we advise a diversification and spreading of risk across other markets so as to minimise financial loss and impact on the local insurers.

In the future, we anticipate that insurance companies will review their pricing models and assumptions. Additionally, a change in capital requirements as weather and climate change issues grow increasingly prevalent. In some instances, there may be a review of policy wordings that have more exclusions pertaining to flooding.

With our global footprint and experience in global markets including climate change prone environments, we can assist with capacity, expertise and knowledge in such scenarios, with minimal impact and inconvenience to the insured.

We design catastrophic excess of loss treaties; which is a reinsurance cover that provides cover to reinsured for losses above a certain threshold caused by cat events such as flooding, cyclones, earthquakes and other catastrophic events.

Contact our teams on Tel +27 11 805 0086 or Email: info@maksure.co.za.

About Maksure Risk Solutions

Maksure Risk Solutions is an Afro-Global independent specialist insurance and reinsurance broker with business footprint in Africa, Asia, East & Western Europe, South America and the Caribbean. We provide innovative and tailor-made risk solutions in Insurance and Reinsurance as well as Risk Financing and Actuarial Consulting geared towards capital management and strengthening our client’s balance sheet. Maksure is also one of the major players in Captive Management (Establishment & Management) in South Africa, Mauritius, Bermuda and various other jurisdictions. We have access into the Lloyds of London with a deep understanding of African markets. Our global nature ensures that our clients access quality capacity as well as some of the world’s latest thinking and solutions.