Insurtech Startup Covrzy Bags Broking Licence From IRDAI

Bengaluru-based Covrzy has received direct broking (general) licence from the Insurance Regulatory and Development Authority of India, enabling the insurtech startup to operate as a direct insurance broker to offer business insurance solutions.

Founded by Ankit Kamra and Veera Thota in 2023, Corvzy offers customer friendly insurance buying services, particularly for startups and SMEs and MSMEs in India. It is building a digitally native insurance business that explains the process of purchasing and servicing business insurance by simplifying  every step of the customer value chain to attract first time business insurance buyers.

“We are thrilled to receive the broking licencee from IRDAI which serves as a testimony to Covrzy’s pioneering innovation and dedication towards revolutionizing the business insurance landscape in India,” said Kamra.

The company claims to have raised $400 K (around INR 3.2 Cr) in its pre seed funding round led by Antler, with participation from Shastra VC.

Since its inception Covrzy has on-boarded over 500 clients, including Redcliffe Labs, Orange Labs, Karboncard and Schbang among others.

The startup also claims to have collaborated with various partners like ICICI Lombard, Bajaj Allainz, IFFCO Tokio in a bid to offer a wide array of insurance products such as commercial general liability, fire & theft insurance, product liability, cyber insurance, stock insurance and asset insurance. 

Recently the Insurtech space has been witnessing a host of developments.

For instance Aeries Financial Technologies, which runs AI-led fintech startup CASHe, bought Hyderabad-based Centcart Insurance Broking Services, marking its foray into the insurance broking vertical.

It is pertinent to note the Ministry of Agriculture is reportedly planning to rope in insurance brokers to increase the penetration of its crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), starting this year.

In May last year, the IRDAI asked insurance companies to lay down social media guidelines for their employees under the revised Information and Cyber Security Guidelines, 2023.

IRDAI introduced sweeping, detailed guidelines for how insurance employees should use social media. These guidelines are set to impact the many insurtech startups in India such as ACKO, Go Digit, Plum, InsuranceDekho and others.

As per an Inc42 report, the homegrown insurtech sector is expected to grow to a market size of $307 Bn by 2030.