Online General Insurance Company, Acko today announced that it has received the final clearance from Insurance Regulatory & Development Authority (IRDA), enabling the company to commence general insurance business in India. The company had filed the application for the licence with IRDA to set up a general insurance company in November 2016.
Confirming the development, Varun Dua, Founder, Acko General Insurance said, “We are looking to start operations by December 2017, by selling multiple products through online channel. Our team has mapped a huge opportunity to tap into online general insurance segment which is estimated to be over $10 billion annually, this has helped us to take a plunge as an insuretech that is completely digital in the general insurance space without the traditional set-up of the brick and mortar format.”
Acko is currently directing its endeavours to strengthen the team, set-up robust tech processes, and forge alliances to formulate and customize products as per the need of the customers. It aims to unbundle insurance in India to make it both more affordable and relevant to consumers of today.
The Startup will operate as an independent general insurance company with its entire operations offered through the digital platform. It will create products and deliver opportunities in areas where there are gaps such as personalized insurance products based on user consumption behaviours, be it in terms of premium amounts or recommendations for a mix of products that are best suited for their requirement, and will handhold them during the difficult claims process.
Talking about the product and its market he further added, “Our focus would be to make insurance affordable and relevant to our customers with less frills and more value to suit their needs. While demographics and mindset play a major part in the purchase decision, we are looking at the younger audience within the age bracket of 25 – 45 years, who are net savvy, own a smartphone or a device with an internet connection, have a genuine need for buying some kind of insurance product and are at ease while doing transactions online.”
Acko has recently raised the largest amount of seed round of $30 mn. The investment is backed by Narayan Murthy’s Catamaran Ventures, Venk Krishnan and Subba Rao of NuVentures, Kris Gopalakrishnan – Co-founder Infosys, Hemendra Kothari of DSP Blackrock, Atul Nishar – Founder & Chairman of Hexaware Technologies, Rajeev Gupta, veteran investment banker and Founder of Arpwood Capital, Accel and SAIF Partners. The venture is already garnering active interest from the insurtech sector.