Industry executive says shift from ‘tax tool’ to ‘protection tool’ mindset, plus regulatory trust, driving demand among expats
A combination of a depreciating rupee, enhanced product access via Gift City, and growing confidence in India’s insurance regulator is prompting a rising number of non-resident Indians (NRIs) in the UAE to purchase life insurance policies back home, according to a top industry executive.
Jude Gomes, Managing Director and CEO of Ageas Federal Life Insurance, said the trend reflects a fundamental shift in how Indians abroad view life cover—from a tax-saving instrument to a core financial protection tool.
“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, people are making need-based purchases.”
The rupee’s slide to record lows against the US dollar and UAE dirham in January 2026 has made Indian premiums significantly more affordable for NRI buyers. At the same time, Gomes noted, comparable insurance products in international markets remain more expensive.
A game-changer, he said, is Gift City—India’s tax-neutral international financial services centre. In October 2025, the government introduced a foreign currency settlement system there, enabling insurers to offer products in dollars and other currencies while streamlining cross-border transactions.
“The launch of 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, plus tax benefits in India.”
Ageas Federal Life Insurance, which partners with Federal Bank—a leading player in remittances—has built a substantial NRI client base through this corridor. Gomes described the arrangement as a “win-win,” giving the insurer direct access to a diaspora already engaged in cross-border financial flows.
He also credited the Insurance Regulatory and Development Authority of India (IRDAI) with rebuilding buyer confidence.
“There have been a lot of interventions over the past five to six years to strengthen servicing and claim payment capabilities. That gives customers greater comfort in transacting with an Indian insurer,” he said.
Looking ahead, Gomes signalled Dubai as a strategic beachhead for the company’s international expansion.
“Dubai is a globally recognised financial hub with a mature expatriate population, high awareness of financial protection, and a stable, forward-looking regulatory environment,” he said. “Our initial focus is on the Indian diaspora through Gift City, with a calibrated, phased approach to expanding into wider customer segments over time.”
