On Friday, AU Small Finance Bank revealed that it has signed a corporate agency agreement with HDFC Life in order to market HDFC Life insurance plans using the bancassurance business model.
Through this alliance, AU Small Finance Bank will be able to provide all of HDFC Life’s life insurance options to its clients. According to AU Small Finance Bank’s announcement, “The stated agreement would strive to further expand the Bank’s life insurance offering by enabling its customers to utilise the digital platform and the touch points of HDFC Life for service.”
The employees and tellers of the bank serve as the point of sale for insurance products to the bank’s clients through a bancassurance arrangement.
Expanding our offering of financial services and improving our clients’ value proposition, we sought a life insurance partner that would enhance our current portfolio of goods and services while assisting consumers with better planning. We are happy to welcome HDFC Life as our valued insurance partner because they are a well-known company with a lot of experience in the life insurance market. We want to develop this cooperation with HDFC Life’s product portfolio and our distribution using a tech-first strategy, led by mobility solutions to facilitate simpler access and a more straightforward user experience. Customers stand to benefit greatly from this agreement as they will receive need-based solutions and seamless services across the extensive networks and digital platforms of both AU SFB and HDFC Life,” said Sanjay Agarwal – Managing Director and Chief Executive Officer, AU Small Finance Bank.
Indian markets that are semi-urban and rural are well-served by AU Small Finance Bank. A rising distribution footprint of 1,000 contact points scattered over 20 states and two union territories, according to the bank, is helping it swiftly develop its customer base, which it said is growing by one million new members annually.
“Everyone with responsibilities should have life insurance. At HDFC Life, our team’s main focus is to ensure the financial stability of the Indian people. As we establish more solid, long-lasting partnerships, our distribution network has been expanding over time. We are confident that AU Small Finance Bank’s extensive presence will strengthen our initiatives and make a substantial contribution to the financial security of many people. We cordially invite them to join the almost 22-year journey of HDFC Life, and we look forward to setting new milestones along the way, said Vibha Padalkar, Managing Director and Chief Executive Officer of HDFC Life.
The bank cited a Swiss Re analysis from 2019 to emphasise that, when compared to other insurance markets, India has the greatest protection gap, at 83%. This relationship will enable to broaden the reach of life insurance products and bring value to clients, according to the AU SFB release. “Both organisations believe in giving the best to customers via innovation and consistency,” it was stated.
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