AU Small Finance Bank and HDFC Life announce bancassurance tie-up

Tags: Economy/Finance

AU Small Finance Bank, and HDFC Life company has entered into a bancassurance  agreement  under which the customers of the Au bank can access the entire life insurance product the HDFC life company.  

Bancassurance 

It is the selling of insurance products through banking channels. In Bancassurance a bank enters into an agreement with an Insurance company. The Bank makes its customer database available to the Insurance companies. If the bank customer buys the insurance products then the bank will receive a commission from the Insurance companies.

Here both the bank and the Insurance companies benefit. The Insurance companies get new customers and banks earn extra income.

Regulator of Bancassurance in India 

Bancassurance sector is regulated by the Insurance Regulatory and Development Authority of India (IRDAI).

AU Small Finance Bank 

It is the largest Small Finance Bank in India which started its operation on 19 April 2017.

Headquarter s: Jaipur, Rajasthan 

Managing Director and Chief Executive Officer: Sanjay Aggrawal

Tagline of the bank: Badlaav Humse Hai

HDFC Life Insurance Company limited

It is a joint venture of HDFC Ltd and Standard Life Aberdeen (Mauritius Holdings) Limited. It started its operation in 2000.

It is one of the largest private sector insurance companies in India.

Headquarters: Mumbai 

Managing Director and Chief Executive Officer: Vibha Padalkar

Tagline: Sar Utha ke Jiyo