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A new report from market intelligence firm NielsenIQ (NIQ) reveals that rising insurance premiums are reshaping consumer behaviour across the UAE, as individuals rethink spending patterns and adopt strategies aimed at long-term financial stability.
According to the report, over half of surveyed consumers reported an increase in insurance premiums, with more than 80 per cent expecting further hikes —particularly in the auto sector.
This has led to a surge in interest for cost-effective solutions, including loyalty rewards, no-claims discounts, and policies with reduced coverage.
“While inflation is beginning to ease, its impact on household budgets remains,” said Rahul Dixit, Strategic Analytics & Insights leader for the Arabian Peninsula and Pakistan at NIQ. “Consumers are adapting by redefining what value means to them — favouring durability, longevity, and predictability in their purchases.”
Key findings from the insurance themed survey
The findings are based on an online survey of 300 UAE-based car owners conducted in March 2025, with a 4.75 per cent margin of error at a 90 per cent confidence level.
As part of this shift in mindset, 76 per cent of UAE consumers expressed a strong interest in securing multi-year fixed-rate auto insurance policies as a hedge against future price volatility.
The report also found that 70 per cent of consumers are willing to pay a premium for products offering durability and longevity, indicating a broader trend toward strategic spending.
This sentiment is echoed across the Middle East and Africa, where 76 per cent of consumers are seeking additional income streams beyond their primary jobs to counteract economic pressure.
NIQ emphasised that businesses must bridge the “say-do” gap — the difference between consumer intentions and actual behaviour — through data-driven insights.
Traditional methods like discounts or heightened advertising are increasingly insufficient in a market where value is defined by context, timing, and subconscious factors.
As consumers in the UAE and wider region become more discerning, the report suggests that companies capable of aligning with evolving expectations stand to gain a competitive edge in a shifting economic landscape.
