Non-resident Indians stepped up their use of India-issued health policies in 2025-26, creating a cross-border segment that regional carriers are beginning to target. According to Policybazaar data, NRI purchases of Indian health insurance rose 126% year-on-year, driven by digital distribution capabilities, regulatory and tax changes, and significant price gaps between Indian and overseas healthcare systems.
The Numbers
Family-floater policies now account for roughly 70% of NRI purchases, up from about 20% a year earlier. Average sums insured exceed Rs 25 lakh, and policies bought specifically for parents in India have increased from 32% to 60% of NRI-originated policies. Outpatient department (OPD) benefits are also being selected more frequently, with adoption rising from 7% to 20%, as NRIs and their families use cover for hospitalisation as well as consultations, diagnostics, and pharmacy costs.
Why the Surge
Three factors are converging. First, price: Indian health plans are often priced below comparable coverage in several foreign markets, with some insurers offering premiums up to 40% lower than equivalent policies overseas. Second, digital tools: AI-enabled tele-medical assessments, remote documentation, and fully digital policy issuance are allowing buyers outside India to complete the purchase process without physical presence. Third, demographics: NRIs are buying policies for ageing parents in India, where managing care from abroad creates both emotional and financial pressure.
Geographic Patterns
The Gulf Cooperation Council (GCC) remains the largest source of NRI health policy purchases, accounting for about half of the total, led by the UAE, Saudi Arabia, and Kuwait. Europe represents around 25%, with some buyers citing waiting times for non-urgent procedures in public health systems. The US and Canada together contribute about 17%, where elevated treatment costs are a frequent driver. Remaining purchases come from Australia and New Zealand.
What This Means for Insurers
The NRI segment is changing how overseas buyers view Indian health policies. As Siddharth Singhal, Business Head of Health Insurance at Policybazaar, noted: 'NRIs are viewing Indian health insurance as a comprehensive healthcare solution covering preventive care, outpatient expenses, and planned treatments, in addition to emergencies.' Insurers are responding with multi-year plans, higher coverage limits, and modular products that address the specific needs of cross-border families.
The Bigger Picture
A SkyQuest study estimates that India's health insurance market will increase from $15.99 billion in 2024 to about $38.2 billion by 2032, at a compound annual growth rate of 11.5%. The NRI segment, while still small in absolute terms, represents a high-value, low-churn customer base that insurers can acquire through digital channels at relatively low cost.