Foreigners in India buying insurance climbs 50%

Female policyholders have also increased from 4% to 11% over two fiscal years.

Insurance purchases by non-resident Indians (NRIs) increased by 50% in customer base across term, health, and investment-linked insurance products, according to PolicyBazaar.

The United Arab Emirates (UAE), United States, and Saudi Arabia are amongst the leading markets for NRI insurance buyers.

In term insurance, NRIs make up 12% of the total customer base, maintaining a compound annual growth rate of over 50% in the last two years.

The age group 31 to 40 constitutes the majority (61%) of term insurance buyers, as individuals in this demographic often seek financial protection for dependents.

Female policyholders have also increased from 4% to 11% over two fiscal years, indicating a trend of growing financial independence amongst NRI women. In terms of sum assured, NRIs in the United States opt for the highest, averaging ₹2.5 crore, reflecting their greater financial needs.

NRI health insurance has also seen strong growth, with annual increases of 70%, 140%, and 100% over the last three fiscal years. Gulf countries lead in health insurance buyers, accounting for 60% of this segment, whilst the US, UK, and Australia follow.

Notably, 25% of NRI policyholders now seek global coverage plans, and interest in outpatient coverage rose from 5% to 25% over two years, catering to the need for preventive care.

Health insurance claims amongst NRIs peak from October to December, aligning with their visits to India for medical purposes.

Investment in insurance-linked products, especially Unit-Linked Insurance Plans (ULIPs), has become popular amongst NRIs, with a 50% growth from 2021 to 2024, now comprising 12.5% of total customers.

The UAE leads in NRI investments with 32%, followed by the US/Canada at 14%. The majority of NRI investors (76%) are between 28-45 years old, with female participation rising from 6% to 11% in the latest fiscal year.

The appeal of high returns in Indian equity markets continues to drive NRI investment in ULIPs.