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Khaleej Times
02-06-2025
- Business
- Khaleej Times
UAE: Most residents choose multi-year fixed car insurance premiums, expect hikes soon
Nearly 8 out of 10 – 76 per cent – UAE residents are interested in securing multi-year fixed-rate car insurance policies to safeguard against future premium hikes, according to a new study released on Monday. Global marketing research firm NIQ's latest Consumer Outlook report showed that 7 out of 10 consumers in the UAE are willing to pay a premium for products that offer durability and longevity. Car insurance premiums have risen significantly since April 2024, increasing by a double-digit rate, prompting individuals to reconsider their spending strategies and adopt new cost-saving measures. Over half of surveyed consumers indicated increases in their insurance premiums, and more than 80 per cent expect further hikes, forcing many consumers to adjust their financial plans accordingly. Many car owners in the UAE believe that the primary reasons for recent insurance premium increases are the rising cost of repairs, inflation, insurance company profits and higher claim frequency. In addition, the unprecedented rains in March and April last year were the driving force behind the surge in car insurance premiums as thousands of vehicles were damaged during rain. The survey was conducted online across 300 car owners residing in UAE during March 2025. Loyalty rewards Around 7 out of 10 UAE car owners said they used to utilise loyalty rewards, no-claims discounts, and reduced coverage levels to manage costs as the cost of living rises, according to a new study released on Monday. NIQ's Consumer Outlook report revealed many UAE consumers are shifting towards products and services that promise long-term value. 'While inflation is beginning to ease, its impact on household budgets remains. Consumers are adapting by redefining what value means to them — favouring durability, longevity, and predictability in their purchases,' said Rahul Dixit, strategic analytics and insights leader of the Arabian Peninsula and Pakistan, NIQ. As reported by Khaleej Times last, around 7 out of 10 UAE employees said in a study conducted by Korn Ferry that the rising cost of living is outpacing their salaries, therefore, many are considering leaving their jobs within the next three months.
Zawya
02-06-2025
- Business
- Zawya
Rising insurance premiums reshape consumer spending in the UAE, NielsenIQ report reveals
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,' Rahul Dixit, Strategic Analytics & Insights Leader, Arabian Peninsula & Pakistan, NIQ said . ' 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™. For more information, please visit
