Weaker rupee, competitive pricing, and Gift City’s foreign currency edge drive cross-border demand as insurers tailor products for the diaspora
A growing number of non-resident Indians (NRIs) in the UAE and other countries are choosing to purchase life insurance policies in India, drawn by a weaker rupee, increased product variety, and the emergence of Gift City as a foreign currency-friendly financial hub, according to a senior insurance executive.
Jude Gomes, Managing Director and CEO of Ageas Federal Life Insurance, said the shift reflects a broader change in how Indians—both at home and abroad—view life insurance.
“Earlier, life insurance was treated just as a tax tool in India. Today, people are looking at this as a protection tool,” Gomes told Khaleej Times. “Those living outside India know they need protection for themselves and their families. So, they are making need-based, financially aware purchases.”
The rupee’s continued decline—hitting record lows against the US dollar and UAE dirham in January 2026—has made Indian insurance premiums more affordable for NRI buyers. At the same time, Indian products remain competitively priced compared to international markets, where coverage often comes at a higher cost.
A key enabler of this cross-border shift is India’s Gift City, a tax-neutral international financial services centre. In October 2025, India introduced a foreign currency settlement system through Gift City, streamlining cross-border transactions and enabling insurers to offer products denominated in foreign currencies.
“Gift City places us in a position to offer a diverse range of products to the Indian diaspora,” Gomes said. “Considering many NRIs are returning to India, it makes financial sense to buy from Indian companies. They receive the majority of the proceeds, along with tax benefits in India.”
Ageas Federal Life Insurance, which partners with Federal Bank—one of India’s largest remittance-focused banks—has built a substantial NRI customer base. Gomes described this partnership as a “win-win,” giving the company direct access to a captive diaspora audience.
He also credited India’s insurance regulator for building trust among overseas buyers. “There have been many interventions over the past five to six years to strengthen servicing and claim payment capabilities,” he said. “That gives customers greater comfort transacting with an Indian insurer.”
Looking ahead, Gomes identified Dubai as a strategic launchpad for the company’s international ambitions, citing its mature expatriate population, strong regulatory environment, and global connectivity.
“Dubai is one of the most attractive insurance markets globally,” he said. “Our initial focus is on the Indian diaspora through our Gift City offering, with a phased approach to expanding into wider customer segments over time.”
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