Acko, a Bengaluru-based tech-focused insurance startup, is gearing up to disrupt India’s life insurance sector with its first product, which it plans to launch in the next two months.
As noted by an Economic Times report, the firm will target customers who prefer online purchases with its pure term life product. Amit Tiwari, a former Amazon India executive, will helm Acko’s life insurance branch, pending official approval from the insurance regulator Insurance Regulatory and Development Authority (IRDAI).
A sector ripe for disruption? This product launch will mark the first significant tech-led disruption in India’s life insurance sector, which hasn’t seen a new company licensed since 2011. Acko plans to maintain its direct-to-consumer approach, focusing on the future online market.
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Aiming for steady growth and direct customer relationships, Acko plans to offer simple term insurance products without guaranteed returns, sources told ET.
Instead, it will provide a lump-sum payout in case of the policyholder’s untimely death. Currently, most life insurance products sold are investment-oriented, but Acko is not planning to venture into such products immediately.
Head to head: Competing with Acko is Go Digit Life, another tech insurance company that recently received its license. They have appointed Srinivasan Parthasarathy as the new CEO and secured strategic funding from HDFC Bank and Axis Bank.
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