Varun Dua: Pioneering Disruption in the Insurance Landscape

For Varun Dua, the journey to revolutionize the insurance sector has been one marked by resilience, innovation, and a relentless pursuit of redefining industry norms. Over the span of roughly 13 years, Dua’s trajectory has been one of exploration, learning, and a commitment to building institutions that challenge the status quo. Dua’s foray into the world of insurance began with a freelance project after a brief stint in marketing and advertising. Recognizing his calling in the business of providing ‘cover,’ Dua’s subsequent roles at Tata AIG and Franklin Templeton provided him with a solid foundation in the complexities of the insurance sector. However, the constraints of traditional employment fuelled his entrepreneurial spirit, leading him to start a CRM and contact Centre Company for insurance and financial services in 2009.

While the initial venture enjoyed success with 300 employees and $3 million in revenues, Dua felt a void – the absence of technology and real value addition for customers. A meeting with Anupam Mittal, founder of Shaadi.com, proved to be a turning point. Recognizing the limitations of his existing venture, Dua decided to shift gears and founded Coverfox in 2013, an online insurance aggregation platform.

Dissatisfied with the limitations of aggregation, Dua embarked on his next venture, Acko, in January 2018. A digital-first general insurance startup, Acko swiftly gained momentum. Under Dua’s leadership, Acko witnessed substantial growth in gross written premiums, policies sold, and funding raised. Notable backers, including Amazon, Flipkart’s co-founder Binny Bansal, and several venture capital firms, signaled confidence in Acko’s potential to disrupt the traditional insurance landscape. Dua’s vision for Acko extends beyond financial metrics; he is determined to address what he identifies as the four cardinal propositions for consumers: a better experience, better value, cheaper products, and faster claims processing. Through Acko’s fully digital products, streamlined processes, and byte-sized insurance offerings, Dua aims to redefine the customer experience in the insurance sector.

Acko’s success is not only attributed to its direct-to-consumer approach but also to innovative product offerings. The introduction of bite-sized insurance plans, such as phone protection and Ola ride insurance, demonstrates Acko’s ability to identify and capitalize on whitespace in the market. Additionally, Acko’s foray into the health vertical, particularly amid the COVID-19 pandemic, showcases its agility in responding to evolving customer needs. While Acko’s aggressive advertising and brand-building initiatives have contributed to rapid growth, it comes at a cost – a noticeable increase in losses. Dua, however, emphasizes the importance of a strategic trade-off between investing in brand-building and paying traditional commissions. Acko’s customer renewal rate, a key metric in the insurance industry, stands high at 65-70 percent, indicating a strong customer retention strategy.

Acko’s investors, including Accel, acknowledge the necessity of disrupting traditional insurance models. Abhinav Chaturvedi, a partner at Accel, emphasizes the significance of strong customer relationships and customer-centricity in creating sustainable advantages. Acko’s commitment to data-driven innovation positions it as a formidable player in the evolving insurance landscape.

Varun Dua’s journey, marked by a relentless pursuit of innovation, customer-centricity, and a commitment to challenging conventions, positions him as a trailblazer in the digital insurance space. As Acko continues to disrupt and redefine, Dua’s vision for a transformative future in the insurance industry seems closer than ever.