A new report from market research firm NielsenIQ reveals that rising insurance premiums are reshaping consumer spending habits across the UAE. As costs climb, individuals are adjusting their financial strategies with a focus on long-term stability.
The survey found that over 50% of consumers have already experienced increased insurance costs, with more than 80% expecting further hikes—particularly in auto insurance.
This has led to growing interest in more affordable options such as loyalty rewards, no-claims discounts, and policies with reduced coverage.
Rahul Dixit, NielsenIQ’s Head of Strategic Analysis for the Arabian Peninsula and Pakistan, said, “Although inflation is easing, its impact on household budgets remains significant. Consumers are redefining value, placing greater emphasis on durability, longevity, and predictability when making purchases.”
Survey Highlights
The findings come from an online survey of 300 UAE car owners conducted in March 2025, with a 90% confidence level and a margin of error of 4.75%.
Reflecting shifting priorities, 76% of respondents showed strong interest in multi-year fixed-rate car loans and insurance policies to hedge against future price volatility.
Additionally, 70% are willing to pay a premium for durable, long-lasting products, signaling a move towards more strategic spending.
Similar trends are seen across the Middle East and Africa, where 76% of consumers seek additional income streams beyond their main jobs to manage economic pressures.
NielsenIQ stresses that businesses must use data-driven insights to close the gap between what consumers say and what they actually do. Traditional methods like discounts and heavy advertising are losing effectiveness in a market where value is influenced by environment, timing, and subconscious factors.
With consumer awareness growing in the UAE and surrounding regions, companies that adapt to these evolving expectations will gain a competitive advantage in the changing economic landscape.
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