Hotel occupancy rates at 80% were the highest in the region
The demand for life insurance among non-resident Indians (NRIs) in the UAE is rising, fuelled by affordable premiums, good returns, promising economic growth opportunities, and the increasing number of expats choosing to return to their homeland.
Rajesh Krishnan, chief operations and customer experience officer at Bajaj Allianz Life said many NRIs from UAE aged between 31 and 45 subscribe to life insurance policies.
"More NRIs are showing interest in life insurance. Our and the Indian regulators are promoting awareness and educating people because life insurance is necessary. Importantly, the premium one pays is minuscule as part of his/her total investment that he/she does across various products," he said.
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Krishnan told Khaleej Times in an interview on Wednesday that NRIs subscribe to policies when they return to India on vacation from the UAE and other countries. "Around 60 per cent of our UAE customers are in the age of 31 to 45 bracket with average range of ticket size is Rs250,000 per annum," he said.
He added that it's crucial for NRIs to consider buying policies at the early stage of arrival in the UAE. Delaying the decision can lead to higher premiums — emphasises the importance of early subscription and the potential benefits it can bring.
Around 10 per cent of contribution to Bajaj Allianz Life’s portfolio comes from NRIs. Of which, 26 per cent is contributed by Indians living and working in the UAE.
Krishnan said that NRIs are increasingly buying policies because the South Asian country is growing, and there is a lot of interest in NRIs returning to India, so they want to make some part of their investment in their home country. “The Indian markets are far more regulated – whether it is banking, insurance or equities – and they are transparent also. And the return on a lot of asset classes given in India is phenomenal. These are the factors that are leading people to invest back in India,” he added.
One of the key financial advantages Krishnan highlighted is the cost of term insurance. He revealed that term insurance in India is up to 2.5 times cheaper than in the UAE and other countries, making it a more cost-effective option for NRIs.
“For example, somebody wants to take a $1 million term cover plan. The premium a person has to pay for $1 million in India compared to here in the UAE is 2 to 2.5 times cheaper. It’s because the mortality rate charged in India is lower than it’s charged by companies over here in UAE and GCC countries,” he added.
Krishnan was speaking during a press conference to mark Bajaj Allianz Life’s first anniversary of its representative office in UAE. Establishing its representative office in Dubai has significantly strengthened its footprint in the GCC region over the last year. The Dubai office has been instrumental in servicing the needs related to their life insurance bought in India.
The company also allows processes through digital claims submissions for quick claims settlement. Other services that have contributed to growth in the region are the inclusion of auto-payments of policy premiums through credit cards issued by international banks, a dedicated NRI desk, digitised onboarding processes, and customer support via video calls, self-service through WhatsApp, live chat, and a responsive call centre that caters to different time zones.
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