Pioneering Business Insurance Innovation: The Journey of Covrzy

Startups

• ByStartupStory     |    May 25, 2024

In the dynamic world of startups, where innovation and resilience go hand in hand, Covrzy emerges as a trailblazer in the realm of business insurance. Founded by Veera Thota and Ankit Kamra, Covrzy is on a mission to revolutionise the way small and medium-sized enterprises (SMEs) and startups insure themselves, ensuring comprehensive coverage through a seamless, tech-driven approach.

Founders’ Background and Inspiration

Veera Thota, the Co-Founder and CTO of Covrzy, holds a BTech in Computer Science and Engineering from the prestigious National Institute of Technology, Warangal, where he studied from 2004 to 2008. He has a whopping experience of more than a decade working with renowned brands like Amazon, Samsung India, Paypal and many more leading his way to co-founding his venture ‘Covrzy’.

Ankit Kamra, the Co-Founder and CEO, completed his Bachelor’s degree in Computer Programming from Guru Gobind Singh Indraprastha University. His professional journey includes pivotal roles at notable organisations like Plum, where he recognized the complexities and under-penetration of business insurance, particularly for SMEs. Along the journey of building the previous venture ‘Flashcash’ and during the tenure of leading partnerships at Plum, it became evident that while the retail insurance experience is being significantly improved, the process for businesses and SMEs remains flawed. SMEs contribute to more than 30% of the GDP, yet over 85% of them are uninsured. His personal experience with these challenges at one of his previous startups, Flashcash Fueled his passion to simplify and improve the insurance landscape for businesses. 

Veera and Ankit crossed paths at the Antler EIR program, a meeting that led to the conception of Covrzy. Their combined expertise and shared vision to address the inefficiencies in business insurance forged a strong foundation for their venture.

Identifying the Market Need and Solution

During his tenure at Plum, Ankit observed a glaring gap in the market: while retail insurance was evolving, the process for business insurance, especially for SMEs, was convoluted and outdated. SMEs, contributing to over 30% of India’s GDP, were largely uninsured, leaving them vulnerable to financial losses from natural disasters, cyber incidents, and other risks.

Covrzy was established to tackle these issues head-on. The startup focuses on enhancing the customer journey by simplifying the discovery and recommendation process. By leveraging content to boost awareness and enabling quick policy recommendations, Covrzy aims to revolutionize the business insurance sector. Their full-stack solution encompasses advisory, management, and claims processing, ensuring businesses receive comprehensive coverage and support.

Unique Offerings and Market Position

Covrzy provides a wide array of customised insurance products tailored to the unique needs of SMEs and startups, including sectors like Fintech and SaaS. Their offerings include Commercial General Liability, Fire & Theft, Product Liability, Professional Indemnity, Cyber Insurance, Directors & Officers Insurance, Export Credit, Stock Insurance, and Asset Insurance.

What sets Covrzy apart in the competitive market is its partnership-led distribution model and a commitment to high-quality advisory services. Unlike many players in the industry, Covrzy focuses on delivering a personalised, non-pushy sales approach, ensuring each business gets the coverage it truly needs. Their specialization in liability insurance makes them the go-to experts, differentiating them from competitors.

Team and Culture

Covrzy believes in maintaining a super-lean team that delivers maximum value. Their organisational culture promotes flexibility and self-accountability, allowing team members to wear multiple hats and maximise their personal growth. This approach not only fosters a healthy work environment but also equips employees to become future leaders.

Launch and Progress

Currently with limited operation, Covrzy is on the verge of launching its product in the market. With the product set to roll out soon, the startup anticipates obtaining the necessary licence within the next two months, enabling them to expand their footprint significantly.

Future Plans and Funding

Covrzy has raised approximately $400K USD from Antler India and Shastra VC. The startup’s plans include expanding operations across different categories and cities in India to

Overcoming Challenges and Customer ExperienceStarting a new business is always full of challenges and excitement. For startups in regulated industries, like insurance, it’s even harder. Not only do you have to follow the rules set by the Ministry of Corporate Affairs (MCA), but you also have to meet the regulations of the Insurance Regulatory and Development Authority (IRDA) if you’re a company like Covrzy.

Covrzy has faced several key challenges in the insurance sector. They need to ensure they are compliant with all regulations, and they also have to tackle issues like lack of awareness among customers, recommending the right products, and building trust with their customers. Developing new technology for liability insurance has also been tough.

Despite these challenges, Covrzy is determined to succeed. They are working closely with regulators, insurance companies, and other important players in the industry. Their approach is similar to how digital payments have successfully grown in India, showing that with collaboration and perseverance, they can overcome these obstacles.

Message to Aspiring Entrepreneurs

Ankit Kamra advises aspiring entrepreneurs to focus on value creation for their customers, keeping them at the centre of every decision related to product, experience, and journey. Veera Thota emphasises the importance of building a robust product or solution and being prepared to acquire a broad range of skills necessary for the entrepreneurial journey.While crafting a product, one must prioritise the creation of value for customers.Placing them at the core of every aspect from the product itself to the overall experience and journey is paramount. Before embarking on the journey, one should be prepared to acquire a diverse set of skills necessary for building and sustaining the desired outcome.

Conclusion

Covrzy exemplifies innovation and dedication in the business insurance sector. With their tech-driven approach, customised solutions, and a strong focus on customer experience, they are poised to transform the insurance landscape for SMEs and startups. Through their visionary leadership and commitment to excellence, Covrzy is paving the way for a more secure and resilient future for businesses.

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