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ICICI Prudential Life Insurance (ICICI PruLife) and Ujjivan Small Finance Bank (Ujjivan SFB) have entered into a bancassurance partnership for the distribution of life insurance products.
Under the partnership, Ujjivan SFB will offer the entire suite of ICICI PruLife’s entire suite of protection, long-term savings and retirement products to its customers through its network of 700+ branches across 26 states and Union Territories.
Commenting on the partnership, Ittira Davis, MD & CEO, Ujjivan Small Finance Bank, said, “We are delighted to announce our partnership with ICICI Prudential Life. Our aim is to increase access to insurance solutions for the aspiring middle-class, enabling them to secure their financial future”.
This bancassurance partnership will help in bridging the demand gap for insurance services, and further strengthen Ujjivan SFB’s position in offering insurance solutions for its customers, he added.
Anup Bagchi, Managing Director & CEO, ICICI Prudential Life Insurance said, “We are delighted to partner with Ujjivan Small Finance Bank, and this partnership will help us fulfil the life insurance needs of the bank’s customers.
Our suite of customer-friendly products complements Ujjivan Small Finance Bank’s offerings and will enable its customers to achieve their long-term financial goals”.
Bancassurance is an insurance distribution model where insurance companies partner with banks to sell policies.
Both the bank and the insurance company get to benefit from this arrangement. While the bank earns a commission from the insurance company, the insurer gains from the distribution network of the bank.
Insurance regulator IRDAI had in 2022 widely thrown open the bancassurance channel for insurers as part of its overall effort to increase insurance penetration in the country and achieve the long-term goal of ‘insurance for all’ by 2047, when the country will celebrate its golden jubilee of independence.
The regulator had paved the way for corporate agents (banks) to have distribution tie up with maximum of nine life insurers, nine general insurers and nine health insurers. Also, insurance marketing firms (IMF) can now enter into tie up with as many as six life, general and health insurers.
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