Acko cuts 5% of workforce as AI reshapes insurance operations
Digital insurance firm Acko has eliminated about 60 jobs-roughly 5% of its 1,200-person workforce-as it restructures operations around artificial intelligence. The affected employees will remain through the end of June.
The layoffs coincide with the departure of Chief Marketing Officer Ashish Mishra after five-and-a-half years at the company. Nitin Khanna, who has spent over seven years in marketing roles at Acko, will succeed him.
One person familiar with the restructuring said AI has "fundamentally redesigned how the company will operate." Roles that functioned in the previous organizational structure no longer exist in the new one.
Context for insurance professionals
This marks Acko's second round of cuts. During the COVID-19 pandemic, the company laid off 45-50 employees from a workforce of 480-500.
Acko's AI push comes as the company prepares for an initial public offering valued at $300-400 million, targeted for FY27. The company has already discussed the deal with bankers to gauge market interest.
Founded in 2016, Acko started with auto insurance and has expanded into health coverage. The company now serves more than 78 million customers across over a billion policies. Its group health product covers more than 200 companies, including Swiggy, Razorpay, and Cred.
In FY25, Acko reduced its consolidated net loss to ₹424 crore from ₹667 crore the prior year, while operating revenue rose to ₹2,836 crore from ₹2,106 crore.
The company competes with legacy insurers like Tata AIG and Bajaj Allianz, as well as digital-first players including Go Digit Insurance and PolicyBazaar.
For insurance professionals, this restructuring signals how AI for Insurance is reshaping operational roles. Understanding how AI Agents & Automation eliminate certain positions while creating others is now essential for career planning in the sector.
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