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Insurance is the security agent for life and as well for the products. Every product can accidentally get perish. Then consumers are liable to purchase the new one.
So, there is a huge burden on the pockets of the consumers. Here insurance plays a dynamic role in paying a certain sum for the consumers.
Insurance comes into the picture if there is any unprecedented scenario. So, in India, there is high demand for insurance providers. But the problem is process is very complex.
When there is a need then there will be a lot of business is araises Even in the insurance sector, middle agents are like a bridge to connect consumers to the insurance providers.
So, a certain amount of money will be getting to the agents as commission from the insurance providers. Eventually, the commissions are manipulating the interest rate for the consumers.
Further, there will be a lot of paper works to comply with to get the insurance. Here people are struggling to fulfill the procedure format of the insurance.
India is the biggest market for the insurance business. The market size of the insurance is over $280 billion and expect 5.3% year-on-year.
But to cater to this market there are only 57 insurance providers in India. So, it is a great opportunity for the startups to cater to the users.
Now, there is a startup that is catering to the consumers with the best customer experience. ACKO is a startup which is providing insurance online.
Here, users get the specialty of the Acko insurance and also about the Acko startup story. How it is changing the way of providing insurance digitally.
Also Read: Startup guru Kunal Shah
Acko Startup
Acko is an insurance provider in online mode. As the company now focuses mainly on vehicle insurance. Acko is an Indian company where it made the entire insurance process online.
Consumers can easily get access to Acko insurance and with no paper works. Now making the insurance process automated. Even there will be hassle-free claims of the insurance as well.
Acko startup was started in November 2016. From then it has made a positive impact on the insurance sector. This startup provides customized insurance according to the need.
Even the insurance is not overprized as the company does not have any agents on the platform.
Varun Dua and Ruchi Depak are the founders of Acko insurance startups. As the Acko headquarters is in Bangalore. Till now, Acko has given insurance to nearly 1 million gig workers.
Nearly 70 million have taken Acko insurance and enjoying the benefits. There is a lot of demand for Acko insurance because of its trustworthiness, low price, and non-commission process.
Acko is a D2C company where users get access to the insurances directly with no barriers like agents.
In 2020, Acko startup has tuned up to 195 crores of revenue. Besides, Acko has become a unicorn in 2021 within 5 years of its launch.
Acko insurance startup has partnered with top brands like Amazon, Zomato, Ola, Dunzo, OYO, and many more. These company’s workers like delivery and logistics employees insurance have challenging roles every day.
So, the company has tied with the best insurance provider Acko startup. These factors all boost the reputation and brand visibility as well. Even consumers start to believe in the startup.
Also Read: Zomato Success Story
Acko Startup story
Startups are born to improvise and bring the tech-intensive process into the work. Even it understands the reality and tries to come with solutions.
In India, getting the insurance process done has become tedious. Besides to comply with all paper works make the process complex.
In some cases, there will be no credibility of the insurance. So, in India insurance providers have to build trust with the users. Then users tend to come and take the insurance.
In India, there are only 57 insurance companies verified by the IRDAI. Further, these companies work into subcategories like Heath insurance and no-health insurance. Presently there are 24 life insurance and 33 non-health insurance companies.
So, there is a huge chance to capture the market with one good idea. Traditionally, insurance seekers have to contact the agents, and then they will get the insurance from the company. Here certain sum as the commission will be going into the pockets of agents.
Ultimately, interest rates are manipulated according to the commission charged by the agent. Here ultimate losers are the users.
Foundation of Acko
So, these all problems are existing in the market for a long time. Then Varun Dua and Ruchi Deepak analyze the situation and observe the business opportunity.
Then they plan for the entire process of insurance to be made online. As internet users are growing rapidly in India. So, they started Acko’s startup in 2016.
Acko insurance company had also eliminated middle agents and provided D2C services.
Here claims are also taken care of smoothly and there will be no chances for fraud. Even if any made Acko vehicle insurance and met with an accident.
Then the vehicle will be taken by the Acko employee and get repaired with verified garages within 3 days.
Ultimately, the Acko startup is providing top-notch services. Now, people are heading to take Acko insurance for their vehicle.
Acko startup Unicorn
Acko has turned unicorn in 2021 after raising $255 million in its series D round. Now the Acko valuation crosses $1.1 billion. The lead investors were private equity firms General Atlantic and Multiple private Equity.
Other investors were the Canada Pension Plan Investment Board, Light Speed Venture Growth.
Existing investors were Amazon, Accel Elevation Ascent Capital, Intact Ventures, and Munich PS.
The funds will help them for further expansion. Acko CEO Varun Dua made it clear that the startup is focusing the different verticals like auto insurance and health insurance.
Even Acko startups are also trying to experiment on the micro insurances on gadgets and travel.
In this way, Acko is providing premium services to the people, Even Acko insurance is revolutionizing the insurances sector from its technology and services.
Till now, Acko insurance is sold for $150 million to consumers. Moreover, it had 30+ digital ecosystem partners.
So, from all these factors and benefits taking insurance from Acko startup is wise.