LIC Partners with AU Small Finance Bank to Expand Life Insurance Access Across India

In a significant move aimed at boosting life insurance penetration across India, the Life Insurance Corporation of India (LIC) has entered into a corporate agency agreement with AU Small Finance Bank. This strategic alliance was formally launched on 14 July 2025 through a joint webcast.

Under the new partnership, AU Small Finance Bank will offer LIC’s full range of life insurance products to its customers. These will be accessible through the bank’s physical branches as well as its digital platforms, thereby enhancing convenience and reach.

Joining Forces to Expand Insurance Access

LIC, India’s largest life insurer, brings decades of experience and a vast portfolio of life insurance products to the collaboration. Meanwhile, AU Small Finance Bank, known for its strong presence in semi-urban and rural markets, will act as a distribution partner, helping LIC’s offerings reach previously underserved populations.

The tie-up reflects the commitment of both institutions to financial inclusion and protection-oriented growth, aiming to make life insurance more accessible to all citizens.

Supporting the “Insurance for All by 2047” Mission

This partnership aligns with the Indian government’s ambitious “Insurance for All by 2047” vision, which aims to ensure that every citizen is covered under a suitable life insurance plan by the 100th year of India’s independence.

Through this collaboration, AU Small Finance Bank will distribute LIC’s full product suite, including:

• Annuity Plans

• ULIPs (Unit Linked Insurance Plans)

• Term Insurance

• Savings Plans

These products will be available across AU Bank’s 2,500+ customer touchpoints and LIC’s network of over 3,600 branches and satellite offices, significantly widening access to reliable life insurance options.

Bridging Gaps in Rural and Underserved Markets

LIC officials emphasized that the synergy between a major life insurer and a small finance bank with deep grassroots connections is a step toward inclusive financial growth. The collaboration is especially vital for rural and semi-urban regions, where insurance awareness and access remain limited.

AU Bank’s strong local engagement and existing customer relationships will be key in expanding LIC’s footprint in these areas. The goal is to simplify life insurance accessibility, enabling individuals and families to safeguard their financial futures.

Enhancing Value for AU Bank Customers

Speaking on the occasion, an Executive Director from LIC noted the significance of the tie-up in empowering AU Bank’s customers with trusted protection and long-term savings solutions under a single roof.

By offering LIC’s products across its banking ecosystem, AU Bank aims to provide holistic financial services, integrating insurance, savings, and investment products seamlessly for its clientele.

The partnership will allow customers to choose from a wide portfolio of LIC offerings, tailored to suit various life stages and financial goals, thereby fostering financial resilience.

A Step Toward Greater Financial Inclusion

The corporate agency agreement represents more than a business collaboration—it marks a step toward systemic financial inclusion. With both institutions sharing a common vision, the partnership is poised to make a lasting impact on the Indian insurance landscape.

By leveraging each other’s strengths—LIC’s product leadership and AU Bank’s distribution capabilities—this alliance can unlock new opportunities for individuals across the country to access life insurance and plan for a secure future.

Conclusion

The LIC–AU Small Finance Bank partnership is a strategic initiative that combines reach, trust, and innovation. It supports national goals, offers diversified insurance options, and aims to bridge the protection gap in India’s semi-urban and rural regions.

As both institutions move forward with this alliance, millions of customers stand to benefit from greater access to life insurance, aligning with India’s broader vision of ensuring financial security for every citizen by 2047.