PolicyBazaar reveals soaring NRI demand for insurance solutions
PolicyBazaar reveals soaring NRI demand for insurance solutions | Insurance Business Asia
Life & Health
PolicyBazaar reveals soaring NRI demand for insurance solutions
Study delved into three products
Life & Health
By
Roxanne Libatique
Online insurance platform PolicyBazaar has released a new report highlighting significant growth in the non-resident Indian (NRI) insurance market.
According to the report, the customer base for term, health, and investment-linked insurance products has expanded by 50% over the past three years.
The largest contributions to this growth have come from NRIs in the United Arab Emirates (UAE), the US, and Saudi Arabia, where there has been rising demand for both financial protection and investment options.
NRI term insurance growth
The report indicated that NRIs now represent 12% of term insurance policyholders, with the market growing at a compound annual growth rate (CAGR) of more than 50% in the last two fiscal years.
The COVID-19 pandemic led many NRIs to reconsider their life insurance needs, driving demand. The attractiveness of India’s competitive premium rates, along with improved access to digital platforms that enable remote purchases, has further spurred growth in this segment.
A significant portion of NRI term insurance buyers (61%) are aged between 31 and 40, many of whom are at a stage in life where they have dependents, such as spouses, children, or aging parents, increasing the need for financial security.
The report also showed that female participation in term insurance has grown, rising from 4% to 11% between FY 2023 and FY 2025, signalling increasing involvement of women in financial planning.
Health insurance uptake among NRIs
NRI health insurance has also grown significantly, with increases of 70% in FY 2022-23, 140% in FY 2023-24, and a projected 100% for FY 2024-25.
According to PolicyBazaar, many NRIs frequently travel to India or have elderly relatives residing there, making health insurance a crucial consideration. India’s healthcare services and affordable insurance premiums have made health coverage a viable option for these NRIs.
The majority of NRI health insurance buyers (71%) are between the ages of 28 and 45, and 30% of policyholders are 50 years or older, indicating that coverage for both young professionals and their elderly family members is important.
The report also pointed to a growing gender balance, with more women now purchasing health insurance policies.
Several insurance features have become more popular among NRIs, such as outpatient department (OPD) coverage, which has increased from 5% to 25% of policies between FY 2021-22 and FY 2023-24.
Another 25% of NRIs purchasing health insurance for family members in India now opt for global coverage, ensuring access to medical care regardless of location.
In addition, 40% of NRI policyholders with pre-existing conditions select Day 1 coverage to ensure immediate healthcare access.
NRI investment in insurance-linked products
The PolicyBazaar report also highlighted a significant rise in NRI investments in insurance-linked products, particularly Unit-Linked Insurance Plans (ULIPs). Between 2021 and 2024, NRI investments in such products increased by 50%, with NRIs now accounting for 12.5% of all investors.
ULIPs offer a combination of investment opportunities and insurance benefits, making them attractive to NRIs seeking both protection and wealth creation. The appeal of India’s equity markets and the country’s rapid economic growth has further driven interest in these products.
The report showed that most NRI investors (76%) are between the ages of 28 and 45, with younger investors (under 28) making up around 11% to 12% of the customer base. Female participation in NRI investments has also grown, with women representing 11% of investors by FY 2025, up from 6% in FY 2024.
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