Naked, a South African artificial intelligence (AI)-driven insurtech company that offers a new, fully digital way for consumers to insure their cars, homes, and valuables has raised US$11 million in Series A funding led by Naspers Foundry to accelerate its growth plans. This is Naspers Foundry’s second insurtech investment and its largest single funding to date.
Co-founded in 2018 by actuaries Alex Thomson, Sumarie Greybe, and Ernest North, Naked uses AI and automation to create a new type of insurance experience.
According to Thomson, the goal of Naked Insurance is “to create insurance that people enjoy by providing an affordable, convenient, and transparent experience. Since our launch in 2018, we have come a long way toward meeting these objectives, including enabling customers to buy cover online in seconds, claiming and managing cover on our award-winning app, and passing on huge savings through sustainably lower premiums,”
“While this is often due to price, consumer distrust and complexity have led to a misunderstanding of insurance,” said Phuthi Mahanyele-Dabengwa, South Africa chief executive officer (CEO) of Naspers. Naked’s offering is convenient and transparent, and the cost savings from its innovative technology are passed on to customers. It increases financial inclusion, which is consistent with Naspers Foundry’s goal of investing in technology companies that have a positive impact on society,” Dabengwa said.
“This is just the start of our journey to reinvent insurance. We are excited to have an investor of Naspers Foundry’s caliber on board to work with us as we expand our team, continue to invest in the technology that puts customers in control, meet the insurance needs of a growing portion of the SA market and enter into international markets.” Thomson added.
The new funding is expected to fuel Naked’s expansion into international markets.