The demand for life insurance among non-resident Indians (NRIs) in the UAE is on the rise due to several factors such as affordable premiums, good returns, promising economic growth opportunities, and the increasing number of expats choosing to return to their homeland. According to Rajesh Krishnan, chief operations and customer experience officer at Bajaj Allianz Life, many NRIs from the UAE aged between 31 and 45 are subscribing to life insurance policies. He highlighted the importance of early subscription to life insurance policies and stressed that delaying the decision can lead to higher premiums.
NRIs are increasingly buying life insurance policies because of the growth opportunities in India and the interest of NRIs in returning to their home country. Krishnan emphasized that the Indian markets are more regulated, transparent, and offer phenomenal returns on various asset classes, making it attractive for NRIs to invest back in India. One of the key advantages he highlighted is the cost of term insurance, which is up to 2.5 times cheaper in India compared to the UAE and other countries, making it a cost-effective option for NRIs.
Bajaj Allianz Life sees around 10 percent of its contribution coming from NRIs, with 26 percent contributed by Indians living and working in the UAE. The company’s representative office in Dubai has strengthened its footprint in the GCC region and has been instrumental in servicing the needs related to life insurance bought in India by NRIs. The company offers digital claims submissions for quick claims settlement, auto-payments of policy premiums through international credit cards, a dedicated NRI desk, digitized onboarding processes, and customer support through video calls, WhatsApp, live chat, and a responsive call center catering to different time zones.
Krishnan also pointed out that NRIs are buying life insurance policies when they return to India on vacation from the UAE and other countries. Around 60 percent of their UAE customers fall in the age bracket of 31 to 45, with an average ticket size of Rs250,000 per annum. He mentioned that the mortality rate charged in India for term insurance is lower than that charged by companies in the UAE and GCC countries, resulting in significantly cheaper premiums for NRIs.
Overall, the increasing demand for life insurance among NRIs in the UAE can be attributed to the attractive premiums, good returns, growth opportunities in India, and the cost-effectiveness of term insurance compared to other countries. Bajaj Allianz Life has been successful in catering to the needs of NRIs through its representative office in Dubai and offering a range of digital services for seamless customer experience and quick claims settlement. With the growing interest of NRIs in investing back in India, the trend of buying life insurance policies among NRIs is expected to continue rising in the future.
