Two new general insurers — Acko and Digit Insurance — have received the final approval from IRDAI to do non life insurance business in India.
Acko General Insurance is a digital general insurance company promoted by Varun Dua, founder of online insurance brokerage Coverfox and backed by Narayana Murthy’s Catamaran Ventures. Dua said that Acko will adopt a risk-based pricing for retail policies such as motor and health insurance as against the flat pricing strategy followed by other general insurers. Acko has plans to start operations by December 2017. Acko General will have a paid-up capital of Rs 200 crore, 48% of which is coming from foreign investors.
Digit Insurance has been launched by Kamesh Goyal, former head of Bajaj Allianz in India, and is supported by the Fairfax Group. Digit Insurance has raised Rs 350 crore, which is one of the highest capital that any insurance company has commenced operations with in the country. Digit insurance said that it will be starting operations in a month or two.
The new entry of players in this segment will heatup the Online selling space in general insurance sector.