New Delhi: In a significant move toward advancing financial inclusion and expanding insurance coverage across India, the Life Insurance Corporation of India (LIC) has partnered with AU Small Finance Bank under a Corporate Agency arrangement. The collaboration was officially launched through a joint webcast held on 14th July 2025, attended by the senior leadership teams of both institutions.
Strategic Bancassurance Alliance for Insurance Outreach
The tie-up enables AU Small Finance Bank, one of India’s fastest-growing small finance banks, to distribute LIC’s comprehensive suite of life insurance products—including Term Insurance, ULIPs, Annuity plans, and Savings policies—through its nationwide branch network and digital platforms.
This partnership is set to bring LIC’s trusted insurance offerings directly to the doorstep of AU Bank customers, enhancing their access to long-term savings and protection solutions without needing to leave their banking ecosystem.
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Boosting Insurance Penetration in Rural and Underserved Areas
A key objective of the partnership is to accelerate insurance penetration in rural and semi-urban regions, where AU Small Finance Bank has a strong footprint. With approximately 2,500 touchpoints of AU Small Finance Bank and over 3,600 branches and satellite offices of LIC, the alliance leverages both organizations’ combined distribution strength.
This collaboration aligns with the national vision of “Insurance for All by 2047”, promoting financial security and risk protection for millions who remain uninsured or underinsured.
Commitment to Financial Inclusion
Speaking on the collaboration, representatives from both LIC and AU Small Finance Bank emphasized their shared mission to make quality financial products accessible to every Indian. By joining forces, they aim to bridge the protection gap and deliver seamless insurance services to customers via physical branches and digital channels alike.
The partnership reflects LIC’s continued strategy to deepen its presence through bancassurance partnerships while allowing AU Small Finance Bank to enhance its value proposition by offering customers a one-stop-shop for both banking and insurance needs.
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