Insurance changes for good: Naked raises R160 million (US$11m) in funding

Since day one, our mission has been to build insurance that people love. We are still early in our journey and by raising R160 million (US$11m) we are excited that we will be able to accelerate our vision. Our focus will be on expanding our team, continuing to invest in the technology that puts customers in control, meeting the insurance needs of a growing portion of the South African market, and entering into international markets.

This funding round was led by Naspers Foundry and we look forward to working with an investor of their calibre. Existing Naked investors, Yellowwoods and Hollard, also participated in the funding round, endorsing our growth plans and success thus far.

Our mission has always been clear: to build instant, honest, affordable insurance that people love

This might seem like a big, hairy, audacious goal, given the levels of apathy and distrust most people feel towards insurance. Then again, most worthwhile endeavours aren’t easy. We believe it’s imperative to restore people’s confidence that their insurance will do what it says on the tin, and that we are on the right track to doing just that.

The second part is the way that we run our business. Inherent in the traditional insurance model is the reality that if less is paid out in claims, it means more profit for the insurer. This results in the client and their insurer being in a constant tug of war over the same money when a claim is submitted.

We don’t work like that. Instead, we take a flat fee upfront to cover running costs and profit. The rest of the money goes towards claims, with leftover premiums at the end of the year paid to causes our clients choose, rather than our bottom line – this is the Naked Difference and it changes everything about insurance.

This means that our profit isn’t linked to how much we pay in claims. By aligning our interests with those of our clients, we create mutually beneficial relationships amongst Naked, our clients, and our communities.

We’re well on our way to changing insurance for good

When we started Naked, many people believed that our mission was unobtainable and unrealistic. This new round of funding shows how far we’ve come – but we’re just getting started. There’s so much more we’d like to do, and this funding allows us to take things to the next level – building insurance experiences that are simple to use, yet beautiful, while making them available to more and more people.

We couldn’t be more excited to walk this journey of redefining insurance with you and are immensely grateful for your ongoing support.