The insurtech unicorn is likely to launch the product in the next two month
While the new product will be a pure play term life product, the startup is targeting customers who are comfortable buying products online
As Acko undertook a direct-to-consumer (D2C) approach for its general insurance business, it would follow the same direction for its upcoming product
Bengaluru-based insurtech unicorn Acko
is planning to disrupt the life insurance space as it is readying its first product in the segment. The insurtech unicorn is likely to launch the product in the next two months.
ACKO is in the final stages of launching its first life insurance product in August or September, ET reported. While the new product will be a pure play term life product, the startup is targeting customers who are comfortable buying products online.
For its new business, the Bengaluru-based unicorn has roped in former Amazon India executive Amit Tiwari. However, Acko is still awaiting formal approval from the Insurance Regulatory and Development Authority of India (IRDAI).
As Acko undertook a direct-to-consumer (D2C) approach for its general insurance business, it would follow the same direction for its upcoming product. The startup wants to build a direct relationship with customers even if that requires a slow growth approach.
Acko may be focussing on a term insurance product now where there is no return guaranteed, but which offers a sum assured in the event of an untimely death of the policyholder.
Founded in 2016 by Varun Dua and Ruchi Deepak, ACKO is a digital insurance policy provider. ACKO entered the unicorn club in 2021 after raising $255 Mn in Series D round led by General Atlantic and Multiples Private Equity Fund.
It competes with the likes of Digit Insurance and Policybazaar in the insurtech market which is expected to have a size of $339 Bn by 2025, growing at a CAGR of 57% during 2021-25.
Recently, ACKO forayed into EV battery insurance with the launch of ‘Extended Battery Warranty’ plan in partnership with electric two-wheeler original equipment manufacturers (OEMs) Ola and Ather.
Earlier this year, it acquired digital health platform Parentlane at an undisclosed amount to expand beyond core insurance offerings.
The startup is looking at its new segment when the private life insurance industry in India witnessed a strong growth in premium in FY23 at 20%, according to latest data from the Life Insurance Council.
Meanwhile, the insurtech startup’s net loss widened 3X to INR 382.3 Cr in FY22 from INR 132.5 Cr in FY21 due to a rise in its expenses. Its revenue rose 129% year-on-year to INR 1,087.5 Cr in FY22.
