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.
