In a significant development for the business insurance landscape in India, Bizcovr Insurance Broking Private Limited, operating under the brand name Covrzy, has been granted a direct broking (general) license by the Insurance Regulatory and Development Authority of India (IRDAI). This authorization marks a milestone for the insurtech startup, enhancing its credibility and empowering it to address the under-penetrated business insurance market in the country. This article delves into Covrzy‘s journey, its mission, and the impact it aims to make in the Indian business insurance sector.
Covrzy’s Inception and Mission
Founders and Early Days
Covrzy was co-founded in 2023 by Ankit Kamra and Veera Thota through Antler’s Residency Program. The startup focuses on providing a seamless, customer-friendly insurance buying journey for startups and SMEs/MSMEs in India. Ankit Kamra, Co-founder & CEO, brings a wealth of experience as a 2X founder with pivotal roles in Plum (Healthtech Startup) and Karbon Card (YC-backed). Veera Thota, CTO of Covrzy, has over 13 years of experience from companies like Razorpay, PayPal, and Amazon, where he built scalable systems and public-facing APIs.
Vision and Goals
Covrzy aims to transform the business insurance landscape in India by offering simple, personalized, and accessible insurance solutions to millions of SMEs and MSMEs. According to Kamra, only around 1% of Indian MSMEs are currently insured. Covrzy’s flagship full-stack platform is designed to accelerate and enhance insurance penetration within this segment, supporting vital business ventures that form the backbone of the economy.
Achieving the Direct Broking License
Significance of the License
The direct broking (general) license from IRDAI is a significant compliance milestone for Covrzy. It allows the startup to operate as a direct insurance broker in India, offering comprehensive business insurance solutions. This license enhances Covrzy’s credibility and enables it to serve a larger customer base, facilitating rapid expansion.
Founders’ Reactions
Expressing his enthusiasm about the achievement, Ankit Kamra said, “We are thrilled to receive the broking license from IRDAI – which serves as a testimony to Covrzy’s pioneering innovation and dedication towards revolutionizing the business insurance landscape in India. This significant compliance milestone enables us to serve and establish our credibility amongst a larger customer base and expand rapidly, thus propelling our mission to make business insurance simple, personalized, and accessible to millions of SMEs and MSMEs across India.”
Funding and Growth
Venture Capital Backing
Since its inception, Covrzy has attracted significant venture capital. The startup raised $400K in a pre-seed funding round led by Antler, with participation from Shastra VC (formerly Veda VC). This financial backing has provided Covrzy with the resources needed to develop its platform and expand its operations.
Client Base and Collaborations
To date, Covrzy has onboarded over 500 clients across India, including notable names such as Redcliffe Labs, Orange Labs, Karbon Card, and Schbang. The startup has collaborated with renowned insurer partners like ICICI Lombard, Bajaj Allianz, and IFFCO Tokio to offer a wide array of insurance products, such as commercial general liability, fire and theft insurance, product liability, cyber insurance, stock insurance, and asset insurance.
Future Plans
Covrzy aims to onboard and assist over 10,000 customers with their business insurance needs in the next 12 to 18 months. In the long term, the startup plans to secure over one million businesses, providing them with essential insurance coverage to protect their operations.
Covrzy’s Platform and Offerings
Digital-First Approach
Covrzy’s web-based platform assists users in managing the entire insurance cycle, from product discovery to purchase, servicing, and claims. This digital-first approach empowers SMEs with tailored insurance and claims support, democratizing insurance distribution in India.
Comprehensive Insurance Solutions
Covrzy offers a variety of insurance products to meet the diverse needs of businesses. These include:
Commercial General Liability Insurance: Protects businesses against claims of bodily injury, property damage, and personal injury.
Fire and Theft Insurance: Covers damage or loss due to fire, theft, or other specified perils.
Product Liability Insurance: Provides coverage for legal liabilities arising from defective products causing injury or damage.
Cyber Insurance: Protects against cyber-attacks, data breaches, and other cyber-related risks.
Stock Insurance: Covers loss or damage to stock and inventory.
Asset Insurance: Protects business assets such as equipment, machinery, and property.
Addressing India’s Underinsurance Problem
The Under-Penetrated Market
India’s business insurance market is significantly under-penetrated, with only about 1% of MSMEs currently insured. This gap presents a substantial opportunity for Covrzy to make a meaningful impact. By providing affordable, flexible, and comprehensive insurance solutions, Covrzy aims to bridge this gap and support the growth and sustainability of SMEs and MSMEs.
Empowering SMEs
Covrzy is committed to solving India’s massive underinsurance problem for SMEs by offering simple, affordable, and flexible business insurance solutions. Their mission is to protect the health and life of businesses, allowing owners to focus on growth rather than worrying about inherent risks. This approach not only benefits individual businesses but also contributes to the overall economic stability and growth of the country.
The Role of Technology in Covrzy’s Success
Leveraging Insurtech
As an insurtech startup, Covrzy leverages technology to streamline the insurance process, making it more efficient and user-friendly. The platform uses advanced algorithms and data analytics to provide personalized insurance recommendations, ensuring that businesses get the coverage they need at the best possible price.
Scalable Systems
With the expertise of CTO Veera Thota, Covrzy has built scalable systems that can handle a large volume of transactions and customer interactions. This scalability is crucial for the startup’s rapid growth and ability to serve a large customer base effectively.
Industry Impact and Recognition
Market Disruption
Covrzy is poised to disrupt the traditional business insurance market in India by introducing innovative solutions and a customer-centric approach. The startup’s digital platform and comprehensive offerings set it apart from traditional brokers, providing a more efficient and transparent insurance buying experience.
Industry Recognition
The granting of the direct broking license by IRDAI is a testament to Covrzy’s innovation and potential. This recognition enhances the startup’s credibility and positions it as a leader in the insurtech space in India. The support from prominent venture capitalists further underscores the confidence in Covrzy’s business model and growth prospects.
Challenges and Opportunities
Regulatory Compliance
Navigating the regulatory landscape in India can be challenging for new entrants in the insurance sector. Covrzy’s ability to secure the direct broking license demonstrates its commitment to compliance and adherence to industry standards. Ongoing regulatory changes will require the startup to stay agile and adaptable.
Market Education
One of the key challenges for Covrzy is educating the market about the importance of business insurance. Many SMEs and MSMEs may not be aware of the benefits of insurance or may have misconceptions about the costs and processes involved. Covrzy’s educational initiatives and customer engagement strategies will be crucial in overcoming these barriers.
Growth and Scalability
As Covrzy scales its operations, maintaining the quality of service and customer satisfaction will be paramount. The startup’s technology infrastructure and strategic partnerships will play a critical role in supporting its growth and ensuring a seamless customer experience.
Covrzy’s journey from inception to securing the direct broking license from IRDAI marks a significant achievement in the Indian insurtech landscape. With a mission to revolutionize business insurance for SMEs and MSMEs, Covrzy is well-positioned to address the underinsurance problem and support the growth of businesses across the country.
The startup’s digital-first approach, comprehensive insurance offerings, and commitment to customer satisfaction set it apart from traditional brokers. By leveraging technology and innovative solutions, Covrzy aims to make business insurance simple, personalized, and accessible to millions of businesses in India.
As Covrzy continues to grow and expand its customer base, it will play a pivotal role in enhancing insurance penetration and contributing to the economic stability and growth of India’s business sector. With the support of its founders, venture capitalists, and industry partners, Covrzy is on track to become a leader in the insurtech space, driving innovation and transforming the business insurance landscape in India