In a strategic move aimed at broadening financial inclusion, SBM Bank India has partnered with ICICI Prudential Life Insurance Company to offer a wide range of life insurance products to its customer base. This bancassurance collaboration will provide clients with access to term plans, retirement-focused instruments, and wealth-building solutions. The partnership is rooted in a shared commitment to bridging India’s life insurance gap, which remains significantly below the global average. Leveraging ICICI Prudential’s expansive insurance portfolio and digital capabilities alongside SBM Bank’s retail footprint, the alliance seeks to make holistic financial protection more accessible across India.
Expanding Insurance Access Through Bancassurance
SBM Bank India and ICICI Prudential Life Insurance have formally entered a bancassurance agreement, combining their respective strengths to make life insurance products more readily available to Indian consumers. The collaboration will integrate ICICI Prudential’s comprehensive suite of offerings—including term life, savings, and retirement planning solutions—into SBM Bank’s retail distribution network.
Bancassurance, a model where banks distribute insurance products, has gained prominence in India as financial institutions seek to diversify revenue streams and deepen client engagement. This partnership aligns with the broader industry shift toward offering customers more cohesive financial services under one roof.
Bridging the Insurance Penetration Gap in India
India’s insurance penetration stood at just 3.7% of GDP in FY2023–24, significantly lagging the global average of 7%. With vast segments of the population underinsured or entirely uninsured, the potential for growth in this sector is immense.
Speaking on the development, Nikhil Rajadhyaksha, Head of Retail Banking at SBM Bank India, emphasized the critical need to improve accessibility and awareness of insurance products. He noted that the alliance reflects the bank’s ambition to evolve into a “financial supermarket” that empowers clients with tailored, digitally-enabled financial tools and protection solutions.
Leveraging Scale and Digital Infrastructure
ICICI Prudential Life Insurance, one of India’s leading insurers, brings significant scale to the table. As of March 31, 2025, the company managed assets worth Rs 3.09 lakh crore and maintained a total in-force sum assured of Rs 39.43 lakh crore. With more than 9 crore lives covered, its expansive reach and strong technological infrastructure position it as a formidable partner in this venture.
SBM Bank India, with 22 branches nationwide—including a newly inaugurated outlet in Tivri, Naigaon—will serve as the distribution backbone for the insurance products. This on-ground presence, coupled with ICICI Prudential’s digital innovation, is expected to offer a seamless, omnichannel experience for policyholders.
A Vision for Holistic Financial Empowerment
This tie-up is more than a commercial arrangement—it reflects a shared vision to strengthen financial resilience across India. By embedding insurance within the broader banking ecosystem, the institutions aim to foster long-term financial planning and risk mitigation among clients, especially those in semi-urban and emerging markets.
As financial literacy grows and regulatory frameworks evolve to encourage innovation, such partnerships will be critical in reshaping how Indians perceive and access insurance. For now, the SBM–ICICI Prudential alliance signals a promising leap toward making financial protection more inclusive, integrated, and impactful.
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