An impressive 92% of NRI investors favor ULIPs, indicating a preference for growth-oriented insurance products that offer substantial equity returns. As the Indian market maintains a post-pandemic bullish trend, ULIPs present NRIs with a compelling opportunity for financial growth
The Non-Resident Indian (NRI) community has demonstrated a strong uptick in insurance adoption, particularly in markets like the UAE, the US, and Saudi Arabia, where term, health, and investment-related products have gained significant traction, businesstoday.in reported.
According to a recent study by Policybazaar.com, NRI insurance customers have increased by 50%, reflecting a notable rise in demand for financial security and long-term investment opportunities.
Term Insurance on the Rise
NRIs now account for 12% of the total term insurance customer base, with a compound annual growth rate (CAGR) exceeding 50% over the last two fiscal years. This surge aligns with a heightened awareness of financial protection following the COVID-19 pandemic, which prompted many NRIs to reassess their insurance needs. India’s robust economic growth and competitive insurance premiums have made it a preferred option for NRIs looking to provide financial security for their families back home. Furthermore, the rise of digital platforms has streamlined the process, enabling NRIs to purchase policies remotely, further fueling this trend.
Most term insurance buyers fall within the 31-40 age range, a demographic that is both financially established and likely to have dependents. This group’s focus on protecting spouses, children, and elderly parents illustrates the NRI community’s commitment to ensuring financial security for loved ones.
INVESTMENT IN INSURANCE-LINKED PRODUCTS
- The NRI investment landscape has also seen a surge in interest in insurance-linked products, particularly Unit-Linked Insurance Plans (ULIPs), which combine investment and insurance
- Between 2021 and 2024, NRI investors grew by 50%, now constituting 12.5% of the total customer base
- The dynamic growth of India’s economy and the high returns from its equity markets have made these products particularly attractive to NRIs seeking long-term wealth accumulation
Health Insurance Gains Momentum
NRI health insurance has seen a sharp increase, with a 70% growth in FY 2022-23, a remarkable 140% rise in FY 2023-24, and an anticipated 100% growth in FY 2024-25. This trend is largely attributed to NRIs’ frequent travel to India and the need to cover elderly family members residing there. With India’s advancing healthcare infrastructure and competitive insurance premiums, NRIs are finding health insurance policies in India a viable solution amidst rising global healthcare costs.
According to Policybazaar’s data, 71% of NRI health insurance policyholders are aged between 28 and 45, while 30% are above 50. The pandemic further highlighted the necessity of healthcare coverage, especially for older family members, motivating NRIs to secure comprehensive health policies.
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