Non-resident Indians (NRIs) have always played a significant role in India’s growth story, from sending remittances to making investments. Now, they are leaving a mark on India’s insurance sector too. Evolving needs, aspirations and increased awareness are pushing NRIs to seek better financial security, and their choices are reshaping how the industry operates.
Here’s a closer look at how NRIs are driving this change:
A Growing Appetite for Insurance
NRIs are emerging as an important customer base for Indian insurers. Policybazaar’s internal study shows that NRIs now make up 12% of total term insurance buyers in India. Over the past two years, the segment has grown by more than 50% annually.
Notably, the Covid-19 pandemic was a turning point. It reminded NRIs of the uncertainties of life and the importance of safeguarding their families back home. This demand was further fueled by competitive premiums and the convenience of buying policies through digital platforms.
Health insurance has become another stronghold for NRIs. In FY 2023-24, demand in this category saw an impressive 140% growth. Rising healthcare costs globally and improved medical infrastructure in India have made health insurance policies more appealing. Lower premiums are an added advantage, allowing NRIs to protect their families while managing costs effectively.
Investment-linked insurance products, such as Unit-Linked Insurance Plans (ULIPs), are also gaining traction. Between 2021 and 2024, NRI investments in ULIPs grew by 50%. Many NRIs are drawn to these plans because they offer the dual benefits of financial protection and wealth creation, making them a smart choice for long-term planning.
Who’s Buying What?
When it comes to term insurance, most NRI buyers are aged between 31 and 40. This is a life stage where careers peak, financial responsibilities grow, and the need for future security becomes more pronounced. Dependents, including children and ageing parents, often drive the need for comprehensive coverage.
There’s also a noticeable rise in the number of NRI women purchasing term insurance. Women now make up 11% of term insurance buyers, compared to just 4% two years ago. This reflects a growing sense of financial independence among women in the NRI community, who are actively planning for their future.
In health insurance, the majority of buyers (71%) fall between the ages of 28 and 45. Features like outpatient department (OPD) coverage, global care, and immediate access for pre-existing conditions make these policies especially appealing. These products cater to the unique needs of NRIs, such as frequent travel and ensuring quality healthcare for elderly family members in India.
Regional Trends and Preferences
The demand for insurance products varies across regions, with the UAE, USA, and Saudi Arabia emerging as the top markets.
Term Insurance: NRIs in the United States opt for the highest average sum assured, reflecting their higher income levels and cost of living. At the same time, NRIs in the Gulf Cooperation Council (GCC) countries, particularly the UAE, form the largest customer base. Nearly 50% of the business in this segment comes from GCC nations.
Health Insurance: UAE-based NRIs lead this category, accounting for 31% of policyholders, followed by Saudi Arabia at 10% and the US/Canada at 11%. Interest in global coverage, OPD benefits, and policies tailored to cross-border needs has been steadily rising in these regions.
Driving Innovation
The growing involvement of NRIs is not just about buying insurance; it’s also shaping the future of the industry. Indian insurtech platforms are playing a key role in addressing challenges like accessibility and complexity. By leveraging digital solutions, they ensure that NRIs can purchase insurance seamlessly, no matter where they are.
Insurers are also stepping up with innovative products tailored to NRI needs. For instance, newer offerings like maternity insurance are helping buyers make informed and quick decisions. These developments show how insurers are solving for the 3Ds—death, disease, and disability—while making the process more customer-friendly.
This evolving relationship between NRIs, insurers, and insurtech platforms highlights how challenges in India’s insurance market are being tackled collaboratively. It’s a two-way street: while NRIs drive demand and innovation, India’s digital and regulatory ecosystem builds the trust needed to meet their expectations.
The Bigger Picture
The growing participation of NRIs in India’s insurance sector is more than an economic trend—it’s a sign of changing times. Their involvement reflects a deep trust in India’s evolving insurance market and a recognition of its ability to cater to global needs.
As NRIs continue to redefine the landscape, the industry is becoming more inclusive, global, and resilient. It’s bridging continents and opening new doors for growth.
The journey has just begun, but the impact is already profound.
Author: Sarbvir Singh, Joint Group CEO, PB Fintech
Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of IIA and IIA does not assume any responsibility or liability for the same.