SBI Life Insurance is strengthening a well-diversified, multi-channel distribution strategy across bancassurance, agency and digital platforms, and is prepared even if there are any potential regulatory changes on distribution channel, MD & CEO Amit Jhingran said on Wednesday.
“We are not aware about this particular topic (on Bancassurance) as of now, but we are very sure that any regulatory changes we will be able to meet with robust response,” Jhingran said during the company’s fourth-quarter and FY26 earnings call.
He was responding to an analyst query over frequent government discourse that life insurers should adopt an open architecture model and not be overly reliant on the bancassurance channel of their parent bank for distribution.
What did M Nagaraju say?
M Nagaraju, Secretary, Department of Financial Services (DFS), said in a TV interview that banks are being asked to avoid exclusive tie-ups with their own insurance subsidiaries and remain neutral. SBI Life derives over 60% of its business from the banca channel, with a substantial share coming from SBI, which does not follow an open architecture model.
He also added that the life insurer has not received any communication on open architecture from regulators beyond what is in the public domain.
Jhingran highlighted that the company has been strengthening its agency channel over the past two years. “The contribution of agency channels in our distribution mix has improved in the last couple of years. We are opening more branches, adding more agents, and having better productivity. We are also focusing upon our emerging business channel,” he said.
SBI Life’s Annualised Premium Equivalent (APE) grew 13% year-on-year to ₹24,270 crore in FY26. APE is the sum of annualised first-year regular premiums plus 10% of single premiums. The share of the bancassurance channel slightly reduced to 60% of APE from 61% last year, while the agency channel increased by one percentage point to 29%.
Meanwhile, the private insurer reported a 2% year-on-year rise in net profit to ₹2,470 crore in FY26. Gross written premium, including new business and renewals, rose 19% to ₹1.01 lakh crore. “Going forward, we intend to maintain the growth rate at around 14%, which has been our CAGR for the last 3 to 5 years,” he said.
SBI Life Insurance will seek a one-year forbearance from implementing Indian Accounting Standards (Ind AS)-based financial reporting, which took effect on April 1. Shares of SBI Life closed 1% lower at ₹1,885.