Expanding healthcare coverage in rural regions requires insurance companies to form partnerships with local hospitals, according to SBI Chairman C S Setty.
In an effort to contribute to the Insurance Regulator's Vision of "Insurance for All by 2047", health insurers in India, including SBI General Insurance and SBI Life Insurance, are actively enhancing their presence in tier-III and tier-IV locations.
SBI General Insurance is leveraging a multi-distribution model, which includes Bancassurance, agency networks, OEM partnerships, broking, retail direct channels, and digital collaborations. This strategy allows them to extend their services deep into rural India, utilising the extensive SBI branch network of over 22,000 locations, agents, financial alliances, and digital partners. Their portfolio caters to retail, corporate, SME, and rural segments, ensuring accessibility through both digital and physical channels.
SBI Life Insurance, on the other hand, has partnered with AU Small Finance Bank, which has a strong rural presence. This corporate agency partnership enables SBI Life's range of protection, savings, retirement, and investment policies to be offered via AU SFB’s network. This initiative aims to streamline the insurance buying experience, particularly in underserved rural and semi-urban markets, by integrating with AU’s digital platforms and customer engagement channels.
The focus of SBI General is to expand into tier-III and tier IV locations, particularly reaching aspirational populations. They have inaugurated 30 specialised health insurance branches in Telangana and Andhra Pradesh to enhance the awareness and adoption of health insurance in underserved regions.
SBI General also aims to increase its reach to expand health insurance coverage in the context of rising medical inflation. They are treating even-look up period cases as possible mis-selling cases and are strengthening their internal ombudsman system to address potential mis-selling cases.
According to C S Setty, the chairperson of SBI, health insurance is seen as playing a key role in harnessing India's demographic dividend. Without a focus on healthcare, the demographic dividend may become a demographic liability. Setty expressed satisfaction with the current regulatory framework for bancassurance and believes that Bancassurance, as a powerful channel, is a crucial tool in preventing mis-selling through Right-Selling.
Naveen Chandra Jha, MD and CEO at SBI General Insurance, opened specialised health insurance branches for building a more inclusive and customer-centric ecosystem. The IRDAI rules allow one to review the purchased insurance plan within the first 15 days of the receipt of the policy document and seek clarification from the insurer.
As of August 9, 2025, these strategic initiatives are underway, marking a significant step towards ensuring comprehensive insurance coverage across India.
- SBI General Insurance's strategic approach, which includes digital collaborations and a focus on tier-III and tier-IV locations, is aimed at expanding their business in health insurance.
- In an effort to enhance accessibility of their services, SBI Life Insurance has partnered with AU Small Finance Bank, which has a strong rural presence, for offering their range of insurance policies.
- The internal policy of SBI General Insurance regards even-look up period cases as potential mis-selling cases and strengthens their internal ombudsman system to address these issues.
- According to the chairperson of SBI, health insurance is seen as a crucial tool in harnessing India's demographic dividend, and Bancassurance, as a powerful channel, is believed to be a significant factor in preventing mis-selling through Right-Selling.
