Jio Financial Services, a subsidiary of Mukesh Ambani's Reliance Group, is said to be in discussions with Allianz SE-the German major insurance company. The discussion aims at sealing an alliance that would focus on the Indian insurance market.

This potential collaboration would try to leverage the depth of digital infrastructure and customer base that Jio Financial Services boasts with Allianz's competencies in insurance products and services. Then, both parties could create innovative solutions for insurance products to meet the diverse needs of Indian consumers.

That would help enhance access to these insurance products across the country and strengthen the growing demand for financial services in India. It will, in addition, also lead to more efficient and easier solutions in insurance due to the company's sharp focus on technology and digital transformation through Jio.

This is part of an even larger trend that is unfolding in the Indian market: the bringing of traditional financial services into digital platforms that enhance experiences for customers and reach underserved market populations.Allianz and Jio are looking to set up a general insurance and a life insurance company in India, the report said, citing people familiar with the matter. The report did not mention further details on the potential deal.

This comes a day after one of India's biggest private insurers, Bajaj Finserv (BJFS.NS), opens new tab, said that Allianz is considering exiting its life and general insurance joint ventures with the Bajaj Group.

Allianz was weighing exiting the joint venture due to a dispute over the direction of the partnership.

Both Jio Financial Services and Allianz refused to comment on reports, stating that it is unrelated to market speculation. Jio Financial was set up as a standalone company from Mukesh Ambani's Reliance Group last year and offers a wide range of insurance products-from car and motorcycle to health and life insurance.Also reports in that the world's biggest asset manager BlackRock (BLK.N), opens new tab was in talks with Jio Financial for a private credit venture.