As we step into 2025, we realise that there are plenty of well-established players in the health insurance market to choose from, making it difficult for consumers to select the one plan that is worth an investment. While some boast a plethora of features, others are more focused on delivering the best possible claim settlement experience despite having limited features. Having said that, there is a fresh contender to look out for when it comes to health insurance- one that has been disrupting the space since they ventured into it. Let’s find out who and how good they are at what they do:

Pro tip: The health insurance market can be a labyrinth. Instead of spending hours navigating through the hundreds of policies out there, why not book a 30-minute call with our expert IRDAI-certified advisors? We don’t spam or pressure you to buy. Just honest insurance advice.

Acko Company Overview

Founded in 2016 by Varun Dua, Acko is a Bangalore-based insurance company that offers a wide range of insurance products, from life and health insurance to vehicle and travel insurance. Their unique digital-only approach to selling insurance sets them apart from other insurers.

They offer some of the lowest premiums in the industry. This is because their digital-only model cuts out costs associated with brokers and agents. However, this model also has its share of disadvantages. Not having an agent implies that a policyholder would have to settle claims directly with the insurer. In case a disagreement arises, there is no intermediary to approach, which could result in an unsatisfactory claim settlement experience. 

Claim Settlement Ratio of Acko Health Insurance

An insurance company’s Claim Settlement Ratio (CSR) tells us the percentage of claims they settle out of all the claims they receive in a given policy year. The CSR of Acko health insurance stands at 96.33%, significantly higher than the industry average of 90%. This indicates that Acko settles 96% of the claims they receive, which is excellent. However,  CSR alone is not the most reliable metric to gauge an insurer's credibility.

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Incurred Claim Ratio of Acko Health Insurance

The Incurred Claim Ratio (ICR) of an insurer tells us about the amount of money the company is paying out in claims vs. the amount they’re receiving in premiums. For example, if the Incurred Claim Ratio of a company is 65%, they are paying out Rs 65 in claims and receiving Rs 100 in premiums. The ICR of Acko for health insurance from 2021-2024 stands at 82%, slightly lower than the industry average of 84%. This implies that Acko is paying out in claims a little less than what they’re making in premiums, which is sustainable in the long run and a sign of profitability.  

Complaint Volume of Acko Health Insurance

The Complaint Volume of an insurance company is the number of complaints they receive about their services out of 10,000 claims. Naturally, the lower the complaint volume, the more efficient an insurer is at settling claims. The Complaint Volume also indicates customer satisfaction with the company. Acko’s complaint volume stands at 17, slightly lower than the industry average of 23. However, we notice a worrying trend regarding Acko’s Complaint Volume- it has displayed an upward trend since 2021.

Acko Health Insurance Plans Available

Acko has a diverse portfolio of health insurance plans which strike the right balance between affordability and comprehensiveness. While the sum insured in almost all plans is variable, for example, the Standard Health Insurance Plan may have a sum insured of 10 lakhs or 25 lakhs, the features mostly remain the same with minor tweaks. Some plans also cater to a specific subset of illnesses, like the Corona Kavach plan. Let’s take a look at these plans:

Pros and Cons of Acko Health Insurance

As with any insurance company, Acko plans come with their own set of advantages and disadvantages. For a better understanding of the company profile, let’s see what they’re great at and what they could improve upon. 

Advantages of Acko Health Insurance plans:

  • Pocket-friendly premiums: Acko has one of the lowest premiums in the insurance industry. This is due to their ‘digital-only’ model, which mitigates administrative costs and eliminates the need to pay brokers and agents for their services. 
  • Comprehensive coverage: Despite being inexpensive, Acko has all the features that should be present in a good health insurance plan. 
  • No waiting period: Acko is one of the first insurers to waive the initial 30-day waiting period and specific illness waiting period from their Platinum Health Insurance Plan, making it easier for their customers to access quicker healthcare. However, the waiting period for pre-existing health conditions would still be applicable depending on their underwriting.

Disadvantages of Acko Health Insurance plans:

  • Not enough claim settlement track record: Acko started selling insurance only in 2016, which does not give us enough data to confidently claim that they’ll maintain their high CSR and low premiums over the upcoming years. As business volumes expand and claims pour in, it’ll be interesting to see if Acko can maintain its winning streak.
  • Increase in Complaint Volume: While Acko's Complaint Volume in the last three years has been lower than the industry average, it has increased yearly for the previous three years, which is not a good sign for Acko.

Why approach Ditto for your health insurance?

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Conclusion

Acko Health Insurance presents a strong case for anyone seeking comprehensive coverage, affordable premiums, and a hassle-free digital experience. Its impressive Claim Settlement Ratio and a strong network of 10,000+ hospitals make it a reliable choice. 

While the increase in complaint volume and lack of historical data may cause apprehension, there is no solid ground to say that Acko will underperform in the coming years. As always, comparing Acko's policies with those of other insurers before finalising a plan is wise. If you need help finding the right health insurance plan, book a free 30-minute consultation with one of our certified advisors. We promise not to spam you and only offer genuine advice. 

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