50% surge in NRI insurance customers: Term, health, and investment products see growth in UAE, US, and Saudi Arabia: Study

The insurance industry has witnessed a 50% surge in Non-Resident Indian (NRI) customers, driven by increased demand for term, health, and investment products. Key markets like the UAE, US, and Saudi Arabia have shown significant growth as NRIs prioritise financial security and long-term investments, spurring a rise in insurance product adoption across these regions.

Term Insurance

According to a study by Policybazaar.com, data reveals that NRIs now account for 12% of total Term Insurance customers, showing a 50%+ compound annual growth rate (CAGR) over the past two financial years. The COVID-19 pandemic significantly amplified the need for financial protection, prompting many NRIs to reconsider their life insurance needs. As a fast-growing economy, India offers competitive premiums, making it an attractive destination for NRIs looking to safeguard their families back home. Additionally, the rise of digital platforms has simplified the purchasing process, allowing NRIs to buy policies remotely.

A majority of buyers (61%) fall between the ages of 31-40, a demographic at the height of their professional and financial growth. These individuals often have dependents—spouses, children, and aging parents—driving the need to secure their families' financial futures.

Health Insurance
NRI health insurance has witnessed significant growth in recent years, with a 70% increase in FY 2022-23, followed by a remarkable 140% rise in FY 2023-24, and an anticipated 100% growth in FY 2024-25. This surge can be attributed to several factors, including frequent visits by NRIs to India and their need to provide coverage for elderly dependents residing in the country. Additionally, India's improving healthcare infrastructure, competitive premium rates, and escalating global healthcare costs have made it an attractive option for NRIs seeking reliable and cost-effective health insurance solutions, per the policybazaar.com study.

71% of NRI policyholders fall between the ages of 28-45, while 30% of insured individuals are aged 50 and above. The pandemic underscored the need for healthcare, particularly for the elderly, encouraging more NRIs to secure comprehensive coverage for their families.

NRI investment in insurance-linked products
Between 2021 and 2024, the number of NRI investors grew by 50%, now accounting for 12.5% of total customers. NRIs are drawn to insurance-linked products, particularly Unit-Linked Insurance Plans (ULIPs), which offer dual benefits of investment and protection. The Indian economy's fast growth, paired with high returns in the equity markets, has made these products highly attractive for NRIs seeking long-term wealth creation,

92% of NRI investors prefer ULIPs, reflecting a desire for growth-oriented instruments. This is also driven by the higher returns offered by Indian equity markets, especially in a post-pandemic bullish environment, per the policybazaar.com study.