Acko: India’s first digital insurance service provider disrupting $280 Billion Industry

Saksham Jain
4 min readNov 21, 2021


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About —

Acko General Insurance is the first Indian general insurance firm solely dependent on digital platforms. The Insurance Regulatory and Development Authority of India (IRDA) granted the firm its license in September 2017. Acko has an online insurance solution that enables it to provide premium insurance services and bite-sized insurance plans with no commissions to its consumers. All the company’s activities are conducted through its digital platform, which eliminates the need for any documentation!

  • Founder — Varun Dua, Ruchi Deepak
  • Founded — November 2016
  • Headquarters — Mumbai, Maharashtra, India

Tagline —

Insurance made easy: Zero commission. Zero paperwork.

Revenue —

Rs. 195 crores ($26 Mn) in FY-20 with net loss of Rs. 187.84 crore ($25 Mn)

Offerings —

They offer unique and bite-sized insurance solutions including rider insurance, mobile and appliance protection, ticket cancellation, along with other major insurance products like vehicle, bike, and health insurance.

Their website presently receives over 4 million visitors per month and has seen an increase in traffic, which increased by 161 percent in the second quarter of FY22 when compared to the same period in FY21.

Business Model —

Acko uses the Direct to Consumer model, with all the offerings present on their digital platforms (App and website). They make money through various insurance schemes present on their platform.

They also have embedded insurance products across leading digital consumer platforms such as Amazon, MakeMyTrip, Ola, Urban Company, Bajaj Finance, and others.

UserBase —

Within 24 months of operation, the firm claims to have provided insurance coverage to over 62 million unique consumers and have an overall 70 million customers across the country.

Valuation —

$1.1 Billion (October 2021)

Investors -

  1. They raised a total amount of $458 Million (October 2021) over six funding rounds.
  2. They have got a total of 21 investors with a few names to include Accel Partners, SAIF Partners, Catamaran Ventures, General Atlantic, Multiples Private Equity, CPPIB, and Lightspeed Growth.

User pain points and their solution by Acko –

  1. Brokerage or commission fees paid by consumers, leading to higher costs — Acko does away with brokers and instead offers users exceptionally affordable premium options. Acko claims that its auto insurance solutions are 15–20% less expensive than those sold through traditional channels.
  2. Non-transparent Process — 100% digital and effortless with all the details.
  3. Slow Claiming in traditional ways — Making insurance claims painless. Simply give them a call or submit a claim online to receive cashless and expedited claim reimbursements.

Competitors –

  1. Digit — Bengaluru-based general insurance company also created in 2016.
  2. PolicyBazaar — Formed in Gurugram, Haryana in 2008. Recently listen in the stock market, the firm involves in the health and life insurance business.
  3. Easypolicy — It was formed in Noida, Uttar Pradesh, in 2011. They are also in the health and life insurance business.

Unique Selling Propositions –

  1. Acko’s insurance premiums are priced really competitive, providing users efficient and affordable insurance solutions.
  2. Simple and hassle-free UI/UX
  3. They feature a variety of customer-friendly programs like in case of vehicle insurance, there is no need for the client to budge one inch. The client only needs to initiate a claim by clicking a button or dialing a phone number. The automobile will be picked up, repaired, and returned in three days.
  4. The organization has received 5-star ratings and over 4.5 crore satisfied customers as a result of its customer-centric initiatives. They deliver outstanding customer service, and as a result, Acko has gained the confidence of its consumers.

What future holds? –

According to Dua, Acko may acquire 1–2 insurance businesses in the future year in order to expand its product service integrations with additional primary care providers as well as across garages and workshops for the vehicle insurance vertical.

The organization now provides corporate insurance to 500,000 employees across 150 firms. According to Dua, the recent cash obtained would allow the firm to expand its operations to 1.5 million people across 200 organizations in the coming months.

Acko’s vehicle insurance vertical presently has close to 2 million clients, which it hopes to quadruple over the next three years. The business also aims for gross premiums of Rs. 1,200 crores ($160 million) by December 31, which will be more than twice last year’s 450 crores ($60 million).

Disclaimer — This is not affiliated with the official website/organization. This case study is purely educational in nature. All photos are attributed to their respective owners.