Health insurance is India’s new soft power and NRIs are taking notice

When a California-based software professional visited her parents in Pune, the conversation over evening tea took an unexpected turn. Her parents casually mentioned that their annual family health insurance premium was less than what she pays for a single dental appointment in the US. More importantly, the policy offered cashless cover across accredited hospitals and the option of global add-ons. For her it was a revelation: India was no longer just the world’s exporter of doctors; it was emerging as an exporter of trusted healthcare financing.

From Doctors to Policies: The Quiet Revolution

For decades, India’s global healthcare narrative has centred on talent - its doctors, nurses, and caregivers who form the backbone of hospitals from Dubai to New Jersey. But in the last few years, a quieter shift has begun. India’s health insurance ecosystem, once seen as fragmented and bureaucratic, is now being noticed for transparent regulations, digital-first claim processing, and product innovation.

This is more than an industry story. It is a case study in soft power. Just as yoga, Ayurveda, and Bollywood became cultural exports, health insurance is shaping up to be India’s next subtle instrument of influence.

Why NRIs Are Paying Attention

1. Affordability with Quality

In the US, average annual health insurance premiums top $8,000 per individual. In contrast, comprehensive family plans in India cost as little as $300–$600 annually. Major procedures reflect similar gaps: a bypass surgery in India may cost $5,000–8,000 compared to upwards of $70,000 in the US.

2. Insurance Adoption Is Surging

Health insurance adoption among NRIs jumped 150% in FY 2024–25. Uptake was especially strong among women (125% growth) and those under 35 (148% growth). Interestingly, Tier-3 cities now account for 46% of NRI claims, showing that trust is no longer confined to metros.

3. Claim Settlement Transparency

IRDAI’s 2023–24 data shows insurers settled around 83% of claims, repudiated 11%, and kept 6% pending. The reliability is critical for NRIs who want assurance their families back home won’t face delays.

Policy Innovation as Diplomacy

India’s insurance regulator has been quietly building trust through reforms:

Customer Protection: Mandatory disclosures, simplified fine print, and portability across insurers.

Digital Integration: Platforms like the National Health Claims Exchange are reducing friction in claims, with plans for tighter oversight to curb inflated billing.

Global Corridors: India–Dubai insurtech partnerships are experimenting with cross-border products for diaspora needs.

These aren’t just domestic wins. They are signals to the world that India can design, regulate, and export credible financial protection systems.

A Market on the Move

The Indian health and medical insurance market stands at USD 14.6 billion in 2025 and is projected to reach USD 21.6 billion by 2030 (CAGR ~8.1%). Key drivers include:

Removal of maximum entry age caps, enabling lifelong coverage.

Demand from younger, urbanised policyholders who see insurance as integral to wealth planning.

NRIs increasingly buy policies for parents and dependents, blending emotional security with financial prudence.

Even policy debates like the call for removing 18% GST on premiums reflects how central health insurance has become to the larger growth conversation.

The Bigger Picture: Soft Power in Action

Soft power is the ability to shape preferences through attraction and trust. For NRIs, India’s health insurance offers:

● Economic Rationality: World-class protection at a fraction of global costs.

● Emotional Anchoring: Assurance that parents and families are safeguarded back home.

● Global Relevance: Products that increasingly travel across borders, much like India’s professionals.

For thousands like her, buying into India’s insurance ecosystem isn’t just a financial decision - it’s an act of trust in a system that mirrors India’s values of resilience and family care.

Conclusion

India’s export is no longer just its doctors. It is also the policies that ensure those doctors can deliver care without bankrupting families. By turning health insurance into a reliable, transparent, and affordable product, India is not just meeting domestic demand it is shaping perceptions abroad. As more NRIs look eastward not just for treatment but for protection, India’s health insurance is quietly emerging as a new lever of influence, a soft power tool as understated yet impactful as yoga or Ayurveda once were.

(Views are personal; the author is Joint Chairman and MD at BajajCapital)