NRIs Flock to Indian Health Insurance: A Growing Trend

Non-Resident Indians (NRIs) are increasingly opting for Indian health insurance, driven by the country’s affordable healthcare and low insurance premiums. According to Policybazaar, NRI health insurance policies surged by 70% in FY 2022-2023, doubling the following year, and expected to continue growing in 2024-2025.

Key Drivers:

1. Covid-19 Pandemic: NRIs reassessed life insurance needs, prioritizing family protection in India.
2. Affordable Healthcare: India’s improved healthcare infrastructure and lower costs attract NRIs.
3. Global Healthcare Costs: Rising international healthcare expenses prompt NRIs to secure Indian insurance.
4. Tax Benefits: NRIs utilize GST refunds on health insurance premiums, demonstrating growing awareness of tax advantages.

NRI Health Insurance Trends:

1. Demographics: 71% of NRI policyholders are between 28-45 years old, with 30% over 50.
2. Regional Spread: Gulf region dominates (60%), led by UAE (31%), Saudi Arabia (10%), and Qatar (9%).
3. Product Preferences:
   • Outpatient (OPD) coverage grew from 5% to 25% in three years.
   • 25% of NRIs opt for global coverage.
   • 40% with pre-existing conditions seek immediate coverage.
4. Claim Patterns: Highest claims occur during October-December, when NRIs visit India for scheduled medical care.

Investments in Insurance-Linked Products:

1. Growth: NRI investments surged 50% between 2021 and 2024.
2. Demographics: 76% of NRI investors are between 28-45 years old.
3. Regional Investment Trends: UAE leads (32%), followed by the USA/Canada (14%) and Saudi Arabia (10%).
4. Product Preference: 92% of NRI investors choose Unit-Linked Insurance Plans (ULIPs).

Term Insurance:

1. Customer Demographics: Majority of policyholders are between 31-40 years old.
2. Female Policyholders: Grew from 4% to 11% between FY 2023-2025.
3. Top Regions: UAE, US, Saudi Arabia, and UK dominate the customer base.

Expert Insights:

Amit Chhabra, Chief Business Officer-General Insurance, Policybazaar, attributes the trend to NRIs’ frequent travel to India, family ties, and affordable healthcare. “India’s improved healthcare, low insurance premiums, and global healthcare costs motivate NRIs to opt for health insurance here.”