Many UAE consumers are experiencing increased auto insurance costs, prompting adjustments to their financial strategies, according to the findings of a survey conducted by NIQ, a leading consumer intelligence company.
NIQ’s 'Consumer Outlook' report says that more than half of respondents experienced an increase in their insurance premiums. Over 80% expect these premiums to continue rising in the coming months.?
The findings of the survey include:
Over 70% are leveraging loyalty rewards, reducing coverage levels, and exploring alternative cost-saving methods to manage expenses.
76% of Middle Eastern and African consumers are actively pursuing additional income streams beyond their primary jobs. While inflation shows signs of deceleration, its lingering presence continues to tighten wallets. However, there is a silver lining: consumers are spending more than they did in previous years—but with deliberate intent.
Across the region, 70% of consumers expressed willingness to pay a premium for products that offer durability and longevity. This sentiment is echoed among auto shoppers in the UAE, where 76% are interested in securing multi-year fixed-rate insurance policies to safeguard against future premium hikes.
Shoppers are prioritising durability and long-term benefits, with many opting for multi-year fixed-rate plans
Traditional industry practices often assume a straightforward approach to influencing purchase behavior—through price cuts, trade promotions, increased advertising, etc. While these strategies can be effective, they are insufficient when applied in isolation, as they leave room for competitors to claim market share.
The report says that there is no universal formula for influencing value perceptions. To navigate the complex web of contextual signals driving purchase decisions, businesses must adopt a data-driven approach to track, diagnose and analyse consumer attitudes alongside actual purchase behaviour.