The Insurance Regulatory and Development Authority of India (IRDAI) has granted certificates of registration to Acko Life Insurance and Credit Access Life Insurance, allowing them to operate life insurance businesses in India. This marks the first issuance of a life insurance license since 2011.
In a recent press statement, the IRDAI announced that Acko Life Insurance Ltd. and Credit Access Life Insurance Ltd. have been granted certificates of registration to commence their life insurance operations. The regulatory authority also revealed that a total of three new insurers were added during the 2022-23 financial year.
Expansion of Indian Insurance Sector
With the addition of Acko Life Insurance and Credit Access Life Insurance, the total number of life insurance companies in India will reach 25.
The IRDAI further mentioned that several more companies are awaiting regulatory approval, with approximately 20 applications currently in the pipeline for registration in the life, general, and reinsurance segments.
Acko’s Journey and Funding Efforts
Acko Life Insurance is an affiliate of Acko General Insurance, a prominent insurtech company in India. It has attracted investments from notable entities such as General Atlantic and the Canada Pension Plan Investment Board (CPPIB).
Since achieving unicorn status in October 2021, Acko has been actively seeking additional capital. Recent reports indicate that the company is in discussions to secure a new funding round of $150 million, led by its existing investors, which would value the company at $1.5 billion.
Among Acko’s current backers are industry giants Amazon, Accel, Elevation Capital, Ascent Capital, Intact Ventures, Munich Re Ventures, and Flipkart co-founder Binny Bansal. The company offers insurance coverage in the auto, health, and travel sectors and has formed partnerships with leading platforms such as Ola and Amazon to provide convenient bite-sized insurance policies.
Rising Demand for Insurtech
Insurtech companies, including Acko, Digit, and Plum, have experienced significant fundraising success following the Covid-19 pandemic, as customer demand for insurance solutions surged amidst the disruptions caused by the global health crisis.
The availability of quick and accessible insurance options has resonated with customers, leading to increased adoption of bite-sized insurance covers offered by insurtech firms.
