Leading small finance bank AU Small Finance Bank and insurer HDFC Life on Friday entered into an agreement for soliciting insurance plans of HDFC Life through the bancassurance business model.
The selling of life assurance and other insurance products and services by banking institutions is called bancassurance.
According to the statement from AU Small Finance Bank, this partnership would enable diverse customers of AU Small Finance Bank to access the entire range of life insurance products offered by HDFC Life, thus fulfilling their need for financial protection.
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.
With its legacy of 27 years, AU Small Finance Bank (AU SFB) has an understanding of customers in the rural and semi-urban markets and has built products and services tailored to the needs of these segments, according to the statement. It has a growing distribution footprint of 1,000 touch points spread across 20 states and two Union Territories, according to the statement.
According to the statement, HDFC Life has secured more than 54 million lives with an overall claim settlement ratio of 99.6 per cent in FY2022.
Vibha Padalkar - Managing Director and Chief Executive Officer, HDFC Life, said, "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."
Sanjay Agarwal - Managing Director & Chief Executive Officer, AU Small Finance Bank, said, "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."
( With inputs from ANI )
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