How AI is changing UAE car insurance: Faster claims, fairer pricing and products built around how you actually drive

Dubai: Insurance experts and officials said that artificial intelligence (AI) is reshaping insurance services provided to customers by accelerating policy issuance and claims settlement, improving risk pricing accuracy, and reducing fraud and operational costs, explaining that this contributes to developing products that are more suitable to individuals’ needs and patterns of using insurance services and pricing policies more fairly.

They explained on the sidelines of the 21st Gulf Insurance Forum, which recently concluded, that employing data and artificial intelligence in vehicle insurance allows insurance companies to analyse a greater number of factors related to the driver, the vehicle, the geographical area, and weather conditions, instead of relying on traditional pricing models, stressing that fully benefiting from these technologies requires combining automated analysis with human expertise.

They emphasised that the UAE is among the leading countries in adopting digital technologies and artificial intelligence at both the governmental and institutional levels.

In detail, the CEO of Liva Insurance, Adal Sarour, said that “the insurance sector has witnessed major changes during the past three years, with vehicle insurance being at the forefront of the fields that led this transformation.” He explained that insurance policies are priced and issued within minutes, while claims can be submitted by phone and settled within days instead of weeks.

Sarour added that insurance companies have begun developing products that suit the actual driving style of each customer, instead of relying on a unified model that suits everyone, noting that “data and artificial intelligence have contributed to building an integrated digital journey for vehicle insurance, starting with instant pricing and extending to electronic claim tracking.”

Sarour explained that the shift towards data-driven approaches is also changing the nature of the skills required in the sector, with increasing importance of underwriting discipline, data science, product design, and creative thinking, which helps companies develop their services and improve the efficiency of their operations.

Risk pricing

For his part, Anas Mustarihi, founder of the eSanad insurance platform, said that “artificial intelligence has enabled insurance companies to rely on new factors when pricing risks and making decisions to accept or reject insurance applications,” explaining that companies previously relied on accumulated experience and a limited set of factors, while it has become possible to analyse up to 100 factors at the same time and integrate them into the evaluation process.

He added that these technologies have enabled the development of more detailed insurance pricing standards, taking into account the driver, the vehicle, the geographical area and weather conditions, which allows for the provision of options that are more suited to each customer’s circumstances and needs and for pricing policies more fairly.

Mustarihi pointed out that minor and small accidents, such as scratches and damage to bumpers, represent about 70% of all car accidents, noting that “artificial intelligence helps to control claims costs by reviewing and comparing spare parts prices in multiple global markets, and choosing appropriate alternatives to reduce costs.”

He said that “choosing an insurance policy is no longer limited to the traditional comparison of prices, but it has become possible to use smart tools to analyse the available options according to multiple criteria, which helps the customer to reach products that are more suitable for his age, region and needs.”

He stressed that “the UAE has an advanced government infrastructure that supports integration between insurance companies, the police, traffic systems and service providers, which creates a suitable environment for expanding the use of data and developing digital insurance services.”

Mustarihi emphasised the importance of not relying solely on artificial intelligence in decision-making, warning of the potential for unsuitable outcomes if these technologies are used without human evaluation. He indicated that his preferred model involves a 70% allocation of roles to artificial intelligence and 30% to human intelligence.

Digital transformation

For his part, the CEO of Mithaq, Muslim Al Balushi, said that “digital transformation enhances the role of technology in developing the insurance sector,” noting that “the UAE was one of the pioneering countries in adopting digital technologies and artificial intelligence at the governmental and institutional levels.”

He added that companies and entities in the sector began taking steps during 2024 and 2025 to develop electronic portals and modern applications, with the launch of applications aimed at facilitating procedures and enhancing regulatory monitoring.

Al Balushi explained that the impact of digital transformation is directly evident in the customer experience, through faster claims processing and the issuance of insurance policies with the click of a button, reducing the need for traditional procedures. This allows for easier access to services without significant changes to daily routines. He emphasised that keeping pace with institutional and technological developments has become essential for insurance companies, given the country's drive towards expanding the use of artificial intelligence and enhancing the integration of technology in services provided to individuals and businesses.

Artificial intelligence impact

For his part, Jihad Fitrouni, CEO of UAS Management, an insurance risk specialist, said that “artificial intelligence helps companies improve performance efficiency, speed up task completion, and reduce costs compared to traditional methods that require more time and human effort in research and analysis.”

He added that these technologies can provide accurate information when used correctly, noting that their applications in insurance companies include addressing underwriting, claims, recovery and risk management challenges, as well as helping to detect fraud.

Vitroni explained that “the ability of artificial intelligence to analyse large amounts of information helps to identify patterns associated with fraud and to discover the methods used in them, which supports insurance companies and risk management offices in reducing the acceptance of insurance claims based on incorrect information or involving fraudulent attempts.”

He pointed out that improving fraud detection capabilities and controlling operating expenses and claims costs can impact the overall cost of insurance. He noted that "reducing these costs could allow insurance companies to offer lower premiums to customers, depending on the size of the savings achieved and how this is reflected in prices." He stated that artificial intelligence opens the door to developing the insurance experience by combining speed of service, accurate risk assessment, and product personalisation. He explained that the impact of these technologies on premiums paid by customers depends on how well the efficiency gains and cost reductions are translated into more competitive insurance prices.