ACKO

 ACKO is an IRDAI licensed General Insurance Company which offers car/bike insurance,
health insurance and COVID-19 health insurance. It offers hassle-free claim settlement
experience to customers by keeping the entire process online and automated.
 ACKO started in 2016 as India’s first digital insurer, and are currently the fastest growing
insurance company in the country. It has over 50 million unique customers.
 ACKO General Insurance offers cashless claim settlements for car/bike insurance and health
insurance for partner garages & hospitals.
 The company has an impressive claim settlement ratio of 95% for FY 19-20. It is also
recognised as the 8th best InsurTech company by FinTech Global in 2019.

FOUNDER JOURNEY:

 The company was co-founded by Varun Dua (CEO) and Ruchi Deepak in 2016.
 As of 2018, Acko has raised ₹274 crore ($42 million) in funding from investors such as
Amazon, Accel Partners, SAIF Partners, Catamaran Ventures.
 The retail products offered by Acko General Insurance include motor insurance, in-trip
domestic insurance and mobile insurance.

VARUN DUA: Chief Executive Officer, Acko Insurance

 CEO Varun Dua is a serial fintech entrepreneur, and a successful one at that. He also co-
founded India’s leading online insurance aggregator Coverfox in 2013 and served as its CEO.
 Even before the official launch, investors had put in $30 million in Acko riding on Varun’s
track record.
 The man is often credited with rewriting India’s insurance story in the digital age.
 Varun also served as a marketing manager at Franklin Templeton Investments.
 Varun Dua has extensive and diverse experience in the insurance industry spanning over 10
years.

RUCHI DEEPAK: Acko Insurance

 Ruchi Deepak , co-founder, Acko, grew up in Jamshedpur and did her bachelor's from Lady
Shri Ram College and Law from Delhi University.
 She started her career as a lawyer and worked for a few years in the investments, financial
services, and venture capital space in India.
 With Acko, she and her co-founder Varun Dua aimed to harness the technological potential
to transform customer insurance experiences and offer innovative, tech-enabled solutions
that adequately address the problems associated with traditional insurance.

IDEA BEHIND STARTING ACKO

 The main idea behind starting ACKO was the digitalization of Insurance industry. The aim
was to make it customer friendly.
 They aimed to harness the technological potential to transform customer insurance
experiences and offer innovative, tech-enabled solutions that adequately address the
problems associated with traditional insurance.
  ACKO, which has raised a total funding amount of $450 million to date, is a technology-first
insurance company with its products made directly available to consumers through a digital
platform.
 ACKO aim to provide a better customer experience and to eliminate the pain points
associated with the traditional model, offering a seamless journey that requires zero
paperwork, from purchase and claims to renewals.
 The business model of Acko clearly states that the brand reaches the customers directly and
sometimes also through brand partnerships. It means no stress and no hassle for insurance-
related work.
 They have also collaborated with 35+ prominent players in the internet ecosystem, such as
Ola, OYO, redBus, Zomato, HDB Financial Services etc.

The journey so far— Challenges and issues

ACKO was started to provide the following benefits to the customers listed below.

1. Digital: Insurance can now be bought digitally anywhere at any point in time and that too
without any paperwork in less time‌‌.
2. Innovation: The products are innovative and the technology added to them has a unique
offering such as trip insurance, electronic cover, and hotel-stay insurance with the
association of digital partners.‌‌
3. Customer-friendly: The brand focuses on the convenience of the customers and offers
products that are customer-friendly.

CHALLENGES FACED BY ACKO INSURANCE INDUSTRY:

 Lack of trust: The trust deficit is accentuated due to complexity of the product offerings,
the purchase process, and the claims process.
 Online Audience: In a few years’ time, Indian audience will be entirely comfortable with
the digital life. However, when it comes to Insurance products and services, there is a
gap regarding people’s current ability, desire, and need.
 The challenge for FinTech & InsurTech companies is to help users migrate online and
make them comfortable.
 Market Dynamics: Insurance start-ups will have to consider the following points about
market dynamics i.e the number of competitors and their market share, Their own
strengths and weaknesses, Customer loyalty, Buyer’s market or a seller’s market, Price
sensitivity and differentiation.
 Strong Security: Insurance companies are fueled by data, and data is susceptible to risks.
Money is just a number in the digital world and the biggest fear of an online consumer is
that the number in the bank account might vanish overnight!
 Staying ahead: It is very important for a start-up to always stay ahead from their
competitors so as to keep growing.