Reportedly, Acko General Insurance has got its final license from IRDAI. It filed its application in November 2016. It is targeting to start its operations by December 2017. Backed by Narayana Murthy's Catamaran, Acko will be selling general insurance products mostly through online channel to retail customers.
"We have received final license within a year of filing the application. We are looking to start operations by December, with four branches selling multiple products through online channel", said Varun Dua, CEO designate Acko General Insurance. He further added, "We will roll out a platform for our distribution partners soon. 50% of our business will come through online. The company has started with an initial capital of Rs. 200 crore and would not require capital for next two years."
The general insurance industry is a relatively less cash intensive industry than life insurance. In 2016-17, the general insurance industry has underwritten direct premium of Rs. 1,27,212 crores, registering a growth rate of 32%. Companies in this sector turn profitable within a short period of five-seven years.
Government's recent thrust on personal accident insurance policy and crop insurance has created newer avenues for insurers.