Rising Insurance Premiums Reshape Consumer Spending in the UAE, NielsenIQ Report Reveals - Middle East Business News and Information
70% of consumers expressed a willingness to pay a premium for products that offer durability and longevity
76% of consumers in the Middle East and Africa are actively seeking additional income streams beyond their primary jobs
Dubai, UAE: A recent report from NIQ reveals that increasing insurance premiums are significantly altering consumer behavior in the UAE, prompting individuals to reconsider their spending strategies and adopt new cost-saving measures.
With over half of surveyed consumers indicating increases in their insurance premiums—and more than 80% expecting further hikes—many are adjusting their financial plans accordingly. Auto insurance, in particular, has seen a significant rise, prompting consumers to seek smarter and more sustainable financial solutions.
Strategic Spending and Smart Solutions
Over 70% of consumers are actively utilising loyalty rewards, no-claims discounts, and reduced coverage levels to manage costs. In response to inflationary pressures, many are also shifting their focus towards products and services that promise long-term value. NIQ's latest Consumer Outlook report shows that 76% of consumers in the Middle East and Africa are pursuing additional income streams and spending with more deliberate intent than in previous years.
' While inflation is beginning to ease, its impact on household budgets remains ,' said Rahul Dixit, Strategic Analytics & Insights Leader, Arabian Peninsula & Pakistan, NIQ. ' Consumers are adapting by redefining what value means to them—favouring durability, longevity, and predictability in their purchases .'
Understanding the discrepancy between consumer intention and behaviour—the 'say-do' gap—is crucial. Businesses that accurately identify this gap will be better equipped to meet evolving expectations and uncover new growth opportunities.
Multi-Year Insurance Policies Gain Traction
This value-driven mindset is also influencing insurance choices. A growing number of consumers in the UAE—76%, according to NIQ—are expressing a strong interest in multi-year fixed-rate auto insurance policies, seeking protection against future premium fluctuations.
Rethinking Value in a Shifting Market
Traditional tactics such as price discounts or increased advertising are no longer sufficient to influence consumer decisions. The concept of value has become more complex, shaped by context, timing, and subconscious influences. NIQ highlights the significance of a data-driven approach that captures not only what consumers express but also how they behave.
* based on an online panel based survey of 300 car owners residing in UAE, conducted in March 2025 @ 4.75% margin of error & 90% confidence level.
About NielsenIQ
NIQ is a leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together two industry leaders with unparalleled global reach. Our global reach spans over 90 countries covering approximately 85% of the world's population and more than $ 7.2 trillion in global consumer spend. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™.
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Rising Insurance Premiums Reshape Consumer Spending in the UAE, NielsenIQ Report Reveals - Middle East Business News and Information
In the UAE, 76% are interested in securing multi-year fixed-rate insurance policies to safeguard against future premium hikes 70% of consumers expressed a willingness to pay a premium for products that offer durability and longevity 76% of consumers in the Middle East and Africa are actively seeking additional income streams beyond their primary jobs Dubai, UAE: A recent report from NIQ reveals that increasing insurance premiums are significantly altering consumer behavior in the UAE, prompting individuals to reconsider their spending strategies and adopt new cost-saving measures. With over half of surveyed consumers indicating increases in their insurance premiums—and more than 80% expecting further hikes—many are adjusting their financial plans accordingly. Auto insurance, in particular, has seen a significant rise, prompting consumers to seek smarter and more sustainable financial solutions. Strategic Spending and Smart Solutions Over 70% of consumers are actively utilising loyalty rewards, no-claims discounts, and reduced coverage levels to manage costs. In response to inflationary pressures, many are also shifting their focus towards products and services that promise long-term value. NIQ's latest Consumer Outlook report shows that 76% of consumers in the Middle East and Africa are pursuing additional income streams and spending with more deliberate intent than in previous years. ' While inflation is beginning to ease, its impact on household budgets remains ,' said Rahul Dixit, Strategic Analytics & Insights Leader, Arabian Peninsula & Pakistan, NIQ. ' Consumers are adapting by redefining what value means to them—favouring durability, longevity, and predictability in their purchases .' Understanding the discrepancy between consumer intention and behaviour—the 'say-do' gap—is crucial. Businesses that accurately identify this gap will be better equipped to meet evolving expectations and uncover new growth opportunities. Multi-Year Insurance Policies Gain Traction This value-driven mindset is also influencing insurance choices. A growing number of consumers in the UAE—76%, according to NIQ—are expressing a strong interest in multi-year fixed-rate auto insurance policies, seeking protection against future premium fluctuations. Rethinking Value in a Shifting Market Traditional tactics such as price discounts or increased advertising are no longer sufficient to influence consumer decisions. The concept of value has become more complex, shaped by context, timing, and subconscious influences. NIQ highlights the significance of a data-driven approach that captures not only what consumers express but also how they behave. * based on an online panel based survey of 300 car owners residing in UAE, conducted in March 2025 @ 4.75% margin of error & 90% confidence level. About NielsenIQ NIQ is a leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together two industry leaders with unparalleled global reach. Our global reach spans over 90 countries covering approximately 85% of the world's population and more than $ 7.2 trillion in global consumer spend. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™.
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