Policybazaar has recorded a 70 percent increase in health insurance policies during the financial year 2022-23. According to Policybazaar, this number doubled in the next financial year and may continue to increase in the current financial year 2024-25. The report lists UAE, USA, Saudi Arabia, Singapore, United Kingdom, Qatar and Oman as the top markets for NRI insurance.

NRI customers are expected to grow by 50% between 2023 and 2024 due to increased demand for term, health and investment products. NRIs account for 12% of total term insurance customers. PolicyBazaar said the market has been growing at an annual growth rate of over 50% in recent years. PolicyBazaar said in its report that the COVID-19 pandemic prompted many NRIs to re-evaluate their life insurance needs.

Health Insurance
The Gulf region currently remains the largest market, with 60% of health insurance buyers being NRIs. Nearly 71% of NRI health policy holders fall between the ages of 28-45, with a significant portion (30%) above 50.

Breakup:
 

• UAE: 31%
• Saudi Arabia: 10%
• Qatar: 9%
• Oman: 5%
• Kuwait: 5%
• USA/Canada: 11%
• UK: 9%
• Australia: 5%
• Singapore: 4%

What do NRIs choose?
 

• OPD Coverage: With growing interest in preventive care, OPD coverage has gained popularity, growing from 5% to 25% in three years, according to Policybazaar.
• Global Coverage: Around 25% of NRIs opt for policies with global coverage, ensuring that family members in India have access to care regardless of location, which caters to the mobile lifestyle of NRIs.
• Immediate Coverage for PED: Approximately 40% of clients with PED want immediate coverage.
• Claim Pattern: Claims peak from October to December, which coincides with NRIs travelling to India for planned treatments.

The survey revealed that a growing number of NRIs are using GST refunds on health insurance premiums, with about 40-45% availing the benefit. This indicates growing awareness about tax benefits.

Investment in insurance-linked products increased
NRIs show a strong inclination towards insurance-linked investment products, with their share increasing to 50% from 2021 to 2024. NRIs currently account for 12.5% ​​of investors, many of whom are attracted to unit-linked insurance plans (ULIPs).
 

• Investor demographics: Most NRI investors (76%) are between 28-45 years of age, with the participation of young NRIs below 28 years of age increasing. Female participation has also increased. The number of women investors is projected to increase to 11% in FY25 from 6% in FY24.
• Regional investment trends: UAE leads with 32% of NRI investments, followed by the US and Canada. These regions have substantial expatriate populations that have strong ties to India's high-growth investment landscape.
• UAE: 32%
• USA/Canada:14%
• Saudi Arabia: 10%

Singapore and the UK also contribute significantly to the customer base, which is based on investments made by high-income expatriates in India's strong market.

Product Preference: Encouraged by the returns of India's equity market, especially in the post-Covid bull market, 92% of NRI investors choose ULIPs.

Why are NRIs buying health insurance in India?
Amit Chhabra, Chief Business Officer-General Insurance, Policybazaar, explains that many NRIs travel frequently to India and many of them have elderly parents living here. Some people also plan to return to India. In all these cases, healthcare remains a constant need. India's better and affordable healthcare services, low cost health insurance premiums and rapid increase in global healthcare costs motivate NRIs to choose health insurance here.

Term Insurance
 

• Customer demographics: Most term insurance buyers are in the age group of 31-40 years. The number of female policyholders is set to increase from 4% to 11% between FY 2023 and FY 2025.
• Top Regions: NRIs from high-income countries such as the UAE, the US, Saudi Arabia and the UK form a large part of the customer base. Among these, NRIs residing in the US demand the highest sum insured. Their average is Rs 2.5 crore.
• Average sum insured by region: GCC countries (UAE, Saudi Arabia, Qatar, Oman): Around Rs 1.8 crore on average income of around Rs 30 lakh.
• Australia/New Zealand: Rs 2 crore, which is 18% of the market.
• United Kingdom: Rs 2 crore, which is 16% of the market.
• America: Rs 2.5 crore.