The Smart Investor : AU Small Finance Bank partners with LIC to broaden life insurance reach

AU Small Finance Bank partners with LIC to distribute life insurance products across 2,456+ branches, aiming to boost financial inclusion and support the 'Insurance for All by 2047' initiative

In a major strategic development aimed at boosting insurance accessibility across India, AU Small Finance Bank (AU SFB) has partnered with theLife Insurance Corporation of India (LIC), the country’s largest life insurer.

 

This alliance supports the national objective of achieving ‘Insurance for All by 2047’ by strengthening insurance penetration, especially in rural and semi-urban regions.

Comprehensive life insurance products to be offered

Through this partnership, AU SFB will distribute LIC’s extensive range of life insurance products. These include term insurance, endowment plans, whole life policies, pension and annuity offerings, and child-specific plans — catering to the diverse protection and retirement needs of customers.

 

 

  

These insurance products will be available at more than 2,456 AU SFB banking outlets spread across 21 states and four Union territories, helping LIC extend its services to India’s underserved segments.

 

Uttam Tibrewal, executive director and deputy CEO of AU Small Finance Bank, highlighted the complementary strengths of both entities. “This strategic partnership brings together two institutions committed towards providing inclusive financial services to the unserved and underserved. By leveraging our distribution strength and LIC’s trusted insurance products, we aim to provide comprehensive protection and retirement solutions to customers across Bharat and enhance the comprehensive banking experience.”

Strategic benefits for both entities

This collaboration marks a milestone in AU SFB’s journey to becoming a full-spectrum financial services provider, integrating banking, protection, and long-term financial planning under a single platform. For LIC, the tie-up enables a broader reach through a credible and customer-centric banking partner.

 

Founded in 1996 by Sanjay Agarwal, AU Small Finance Bank is the largest small finance bank in India and operates as a scheduled commercial bank. As of March 31, 2025, the bank serves over 1.13 crore customers, maintains a balance sheet size of ₹1.57 trillion, and holds a ‘AA/Stable’ credit rating.