Why NRIs in UAE, US, and Saudi choose health insurance in India: Explained

The surge in demand across term, health, and investment products has driven a 50% rise in NRI customers between 2023 and 2024, according to PolicyBazaar

Health insurance uptake among Non-Resident Indians (NRIs) has risen sharply, with Policybazaar reporting a 70% increase in policies during FY 2022-23. This number doubled the following year and continues to grow into 2024-25, according to the online insurance marketplace. The report names the UAE, United States, Saudi Arabia, Singapore, the United Kingdom, Qatar, and Oman as top markets for NRI insurance.

 

The surge in demand across term, health, and investment products has driven a 50% rise in NRI customers between 2023 and 2024. NRIs now make up 12% of total term insurance customers, with the market expanding at an annual growth rate of over 50% in recent years, Policybazaar said.

 

“The Covid-19 pandemic pushed many NRIs to reassess their life insurance needs, especially to protect families in India,” said PolicyBazaar in its report.

 

Health insurance uptake

 

Demographics: Around 71% of NRI health policyholders fall between the ages of 28-45, with a significant portion (30%) above 50, motivated by the pandemic’s impact on healthcare priorities for families.

 

Regional spread: The Gulf region remains the largest market, with 60% of health insurance purchases by NRIs based there.

 

Here's the break up:

UAE: 31%

Saudi Arabia: 10%

Qatar: 9%

Oman: 5%

Kuwait: 5%

USA/Canada: 11%

UK: 9%

Australia: 5%

Singapore: 4%

 

What NRIs opt for

 

Outpatient (OPD) coverage: With a rising interest in preventive care, OPD coverage has gained popularity, increasing from 5% to 25% over three years, according to the insurer.

 

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, catering to NRIs’ mobile lifestyle.

 

Immediate coverage for pre-existing conditions (PEDs): About 40% of customers with PEDs seek immediate coverage

 

Claim patterns: Claims peak from October to December, coinciding with NRIs’ visits to India for planned treatments.

 

An increasing number of NRIs are utilising GST refunds on health insurance premiums, with around 40-45% taking advantage, indicating a growing awareness of tax benefits, the survey revealed.

 

Investments surge in insurance-linked products

 

NRIs show a strong inclination towards insurance-linked investment products, with their share growing by 50% from 2021 to 2024. Currently, NRIs account for 12.5% of investors, with many drawn to Unit-Linked Insurance Plans (ULIPs), which combine investment and insurance benefits.

 

Investor demographics: Most NRI investors (76%) are between 28-45, with growing involvement from younger NRIs under 28. Female participation has risen as well, with women making up 11% of investors in FY 2025, up from 6% in FY 2024.

 

Regional investment trends: UAE leads with 32% of NRI investments, followed by the USA and Canada. These regions have substantial expatriate populations with strong ties to India’s high-growth investment landscape.

 

UAE: 32%

USA/Canada: 14%

Saudi Arabia: 10%

Singapore and the UK also contribute a significant portion to the customer base, driven by high-income expatriates investing back in India’s robust market.

 

Product preference: An overwhelming 92% of NRI investors choose ULIPs, encouraged by India’s equity market returns, especially in the post-pandemic bullish market.

 

Why are NRIs buying health insurance in India?

 

"Many NRIs travel frequently to India and a lot of them have family with elderly parents here. Some even plan to move back in a few years. In all these cases, healthcare remains a constant requirement. India’s improved and affordable healthcare, low cost of health insurance premiums, and the exponential rise in global healthcare costs motivate NRIs to opt for health insurance here," explains Amit Chhabra, Chief Business Officer-General Insurance, Policybazaar.

 

Term insurance

 

Customer demographics: Most term insurance buyers are aged 31-40, an age group focused on safeguarding financial futures for dependents, including spouses, children, and parents. Female policyholders have grown from 4% to 11% between the 2023 and 2025 financial years.

 

Top regions: NRIs from high-income countries, such as the UAE, US, Saudi Arabia, and the UK, form the bulk of the customer base, with the highest sums assured sought by those in the US, averaging Rs 2.5 crore due to higher income levels and living costs.

 

Average sum assured by region:

GCC countries (UAE, Saudi Arabia, Qatar, Oman): Rs 1.8 crore, with average incomes around Rs 30 lakh

Australia/New Zealand: Rs 2 crore, representing 18% of the market

United Kingdom: Rs 2 crore, accounting for 16%

United States: Rs 2.5 crore