As global healthcare costs climb, NRIs are drawn to India’s relatively affordable and increasingly advanced healthcare system, supported by cost-effective health insurance premiums
Non-Resident Indians (NRIs) are increasingly opting for health insurance in India, with the number of policyholders growing steadily in recent years. Policybazaar reported a remarkable 70% rise in NRI health insurance policies in the financial year 2022-23, a figure that doubled in 2023-24, with growth expected to continue through 2024-25. This trend highlights a shift among NRIs to prioritize health coverage and investment products amid rising global healthcare costs and a reassessment of family protection needs post-pandemic. Key markets driving this surge include the UAE, United States, Saudi Arabia, Singapore, United Kingdom, Qatar, and Oman, reported business-standard.com.
The increase spans a range of insurance products, from health and term policies to investment-linked options like Unit-Linked Insurance Plans (ULIPs). The growth in NRI customer numbers hit 50% between 2023 and 2024, with NRIs now representing 12% of Policybazaar’s term insurance clientele, and the segment is expanding at an annual growth rate exceeding 50%.
This upward trend in health insurance among NRIs reflects a growing need for security and financial foresight, with healthcare provisions in India seen as essential for families abroad
COVID-19’s Influence on NRI Insurance Choices
The pandemic served as a wake-up call, pushing many NRIs to reevaluate their life and health insurance needs. Policybazaar notes that around 71% of NRI health policyholders are aged 28-45, with an increasing share (30%) over 50, underscoring the pandemic’s role in reshaping healthcare priorities for families back home.
Regional Insights: Gulf Dominates Health Insurance Uptake
NRIs in the Gulf region are leading the uptake, accounting for a majority (60%) of health insurance purchases. Within the Gulf, the UAE alone comprises 31% of policies, followed by Saudi Arabia (10%), Qatar (9%), and Oman and Kuwait at 5% each. Outside the Gulf, the USA and Canada represent 11%, while the UK contributes 9% and Australia 5%.
Growth in Preventive and Global Coverage Options
Interest in preventive care is also on the rise, with Outpatient (OPD) coverage growing from 5% to 25% over the last three years. Meanwhile, around 25% of NRIs choose policies with global coverage, ensuring that family members in India can access healthcare regardless of location. Immediate coverage for pre-existing conditions is another area seeing significant demand, with 40% of NRI policyholders opting for this benefit.
Claim Patterns and Tax Benefits
Claims activity peaks from October to December, when many NRIs visit India for planned treatments, leveraging GST refunds on health insurance premiums. About 40-45% of NRIs now take advantage of these tax benefits, reflecting increased awareness.
Insurance-Linked Investments on the Rise
In addition to health insurance, NRIs show a growing interest in insurance-linked investment products like ULIPs. From 2021 to 2024, NRI participation in ULIP investments increased by 50%, making NRIs 12.5% of Policybazaar’s investor base. The majority (76%) of NRI investors are aged 28-45, with a noticeable uptick in younger investors under 28. Female participation also rose significantly, reaching 11% in FY 2025 from 6% in FY 2024.
Regional Investment Trends and Product Preferences
Investment trends reveal the UAE as the top contributor, accounting for 32% of NRI investments, followed by the USA and Canada with 14%. High-income expatriates from Singapore and the UK also add to this segment. ULIPs remain a favored product, chosen by 92% of NRI investors drawn to India’s strong equity market, especially in the post-pandemic economic recovery.
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