A new study by Policybazaar reveals that term insurance purchases by Non-Resident Indians (NRIs) from Indian insurers have doubled over the last two years. The surge is being spearheaded by younger buyers seeking financial security amid heightened geopolitical instability in West Asia.
The “West Asia” Effect
Geopolitical tensions have acted as a massive catalyst for the insurance sector. The report highlights a 35% month-on-month spike in purchases directly linked to the ongoing conflict in the region.
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Primary Market: West Asia now contributes more than 50% of total NRI demand, with the UAE leading the pack.
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Other Key Hubs: The US, Canada, and the UK follow, with Saudi Arabia and Qatar remaining significant contributors.
Shift in Demographics and Behavior
The profile of the typical NRI insurance buyer is shifting toward a younger, more cost-conscious demographic.
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Younger Buyers: The 25–35 age group now accounts for 54% of demand, up from 44% in 2024.
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High Coverage: High-income NRIs (earning above ₹40 lakh/year) are opting for substantial cover between ₹3 crore and ₹5 crore.
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Policy Preferences:
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80% choose Pure Term Plans over return-of-premium products.
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85–90% prefer Limited Pay options, allowing them to finish premium payments early while maintaining long-term cover.
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67% opt for coverage extending beyond age 70.
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Why Buy from India?
The report identifies several competitive advantages that make the Indian insurance market attractive to those living abroad:
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Lower Premiums: Buying from India is typically 20–30% cheaper than purchasing equivalent cover in overseas markets.
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Tax Benefits: Claim payouts remain tax-free in India.
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Digital Ease: The shift to video medicals, minimal paperwork, and digital claim handling has removed the historical barriers of distance.
Summary of Market Growth
| Metric | 2024 (Approx) | 2026 (Current) |
| Total NRI Purchases | Baseline | 2x Increase |
| Share of 25–35 Age Group | 44% | 54% |
| MoM Spike (due to conflict) | N/A | 35% |
With the West Asia crisis continuing to influence financial decisions, it appears NRIs are increasingly prioritizing “income replacement” to safeguard their families back home.
