Insurance startup Naked has officially launched on Tuesday with its first product, an AI-based car insurance offering.<\/p>\n
Naked, which raised R20 million in funding in November last year, from companies Hollard and Yellowwoods, is co-founded by actuaries Sumarie Greybe, Alex Thomson and Ernest North who worked for many years with South Africa\u2019s leading insurers.<\/p>\n
“We saw first-hand how insurers\u2019 focus on underwriting profits overshadows claims handling, premium fairness and customer service,” said Thomson.<\/p>\n
We realised that to fix these problems we needed to change how we make money, to remove the inherent conflicts of interest.<\/p>\n
Unlike existing insurance, Naked takes a fixed portion of premiums to run the business, with the balance going into a pool to cover claims. At the end of each year, money left over in the claims pool goes to charities nominated by customers rather than towards company profits, meaning Naked\u2019s income doesn’t depend on whether claims are paid or not, its founders said.<\/p>\n
“Naked is built from the ground up using AI technology, free from cumbersome legacy insurance systems, with the aim of transforming how customers experience insurance online,” said Thomson.<\/p>\n
Potential customers can receive a quote, and if it\u2019s accepted, receive cover in three minutes on the Naked website or app, without the need to talk to a call centre.<\/p>\n
The Naked app also allows customers to change their cover instantly at any time.<\/p>\n