PriyaPatel
TLDR:
- Insurtech startup Acko aims to achieve profitability by FY2026-27.
- Founder and CEO Varun Dua expects the general and health insurance segments to turn earnings positive.
According to Dua, Acko is targeting a premium of Rs 2,000 crore by the end of FY2024, with a 35% year-on-year growth rate. As of December 2023, Acko had already earned premiums of Rs 1,360 crore. The company currently derives about 43-44% of its premium mix from the motor segment and 48% from the health segment. Dua expects the auto segment to become fully profitable within the next 18 months and the general insurance business to be fully profitable by FY2026-27. Acko recently launched its life insurance company, which is currently in the beta stage.
The focus for Acko is on creating a niche in servicing, particularly through partnerships with workshops. The company aims to reduce costs and increase visibility by having garages set up workshops using the Acko brand. Acko also places importance on retention rates, with a retention ratio of 73-74% for the 13th month and approximately 85% for the 25th month in the auto insurance segment. Additionally, the company has found success in selling health insurance to its motor customers, which has helped reduce customer acquisition costs.
