AU Small Finance Bank and LIC Partner to Expand Life Insurance Access

AU Small Finance Bank has entered into a distribution partnership with the Life Insurance Corporation of India (LIC) to offer LIC’s life insurance products. The bank will offer LIC’s range of life insurance products through its network of branches across India.

Support for National Insurance

The collaboration is aligned with the national objective of ‘Insurance for All by 2047’. It is expected to help increase insurance coverage in rural and semi-urban regions, where access to formal insurance is still limited.

LIC’s offerings under this partnership include term plans, endowment policies, whole life covers, pension and annuity schemes, and child-specific plans. These products will be made available at AU SFB branches to serve a variety of financial needs.

AU Small Finance Bank operates more than 2,456 banking outlets across 21 states and 4 Union Territories. Through this network, LIC’s products will now be available in previously underpenetrated markets, including Tier 2 and Tier 3 locations.

Background and Scale

Founded in 1996, AU SFB is currently the largest small finance bank in India. As of March 31, 2025, it serves over 1.13 crore customers and has a balance sheet size of ₹1.57 lakh crore.

For AU SFB, the partnership adds an insurance vertical to its portfolio, offering customers access to financial protection products alongside banking services. For LIC, it enables distribution through a network focused on financial inclusion.

Read More: LIC Q4FY25 Net Profit Surges 38% on Cost Efficiency!

Conclusion

The AU SFB–LIC tie-up is to expand access to life insurance for underserved populations. With existing banking infrastructure and LIC’s product range, the partnership adds new channels for insurance distribution without major structural changes.

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