AU Small Finance Bank ties up with HDFC Life for bancassurance partnership

Through this partnership, AU Small Finance Bank will be able to offer its customers the entire range of life insurance products offered by HDFC Life. “The said arrangement will aim to further enrich the Bank’s life insurance offering by enabling its customers to access the digital platform and the touch points of HDFC Life for servicing,” AU Small Finance Bank said in its statement.

Through a bancassurance partnership, the bank staff and tellers become the point of sale of insurance products to the bank’s customers.

“Expanding our bouquet of financial services and customer value proposition, we wanted to associate with a life insurance partner who would add value to our existing range of products & services while helping our customers plan better. HDFC Life is a reputed brand with extensive experience in the life insurance segment, and we are delighted to welcome them as our valued insurance partner. With our distribution and HDFC Life’s product bouquet, we are looking to build this partnership with a tech first approach, led by mobility solutions to enable easier access and simplified user experience. Customers stand to gain a great deal from this partnership as they will get need-based solutions and seamless services through both AU SFB and HDFC Life’s expansive network and digital platforms,” said Sanjay Agarwal – Managing Director and Chief Executive Officer, AU Small Finance Bank.

AU Small Finance Bank has a strong presence in the rural and semi-urban markets of India. The bank claimed that it is rapidly expanding its customer base adding one million customers every year supported by a growing distribution footprint of 1,000 touch points spread across 20 states and two union territories.

“Life insurance is necessary for every individual with responsibilities. We at HDFC Life work with a clear objective of financially securing the Indian population. Our distribution network has been growing with time, as we build newer, long-lasting partnerships. We believe AU Small Finance Bank, with its vast presence, will further strengthen our efforts and contribute significantly towards financially securing a large number of individuals. We warmly welcome them to join HDFC Life’s journey of over 22 years and look forward to creating new milestones as we walk ahead together,” said Vibha Padalkar – Managing Director and Chief Executive Officer, HDFC Life.

The bank quoted the Swiss Re report (2019) to highlight that India has the highest protection gap of 83% in comparison to other insurance markets. “With both organisations believing in offering the best to customers through innovation and consistency, this partnership would enable to deepen the reach of life insurance products and deliver value to customers,” AU SFB said in its statement.