South African insuretech, Naked, has raised $17 million in Series B funding, led by the International Finance Corporation (IFC), the World Bank Group’s private-sector-focused development institution. German Development Finance Institution (DEG), and original investors Yellowwoods and Hollard also took part in the funding round.
Naked’s AI-driven business model has transformed insurance, making it more convenient, affordable, and transparent for customers. Naked’s end-to-end digital platform allows customers to manage their entire insurance experience online, from getting a quote and buying insurance to managing their policy and making claims, without needing to speak to a contact center agent.
Naked charges a fixed percentage of customers’ premiums, in contrast to the traditional model where insurers’ profits depend on how much they pay in claims. The Naked Difference means that in years when claims are lower than expected, the surplus goes to communities and good causes chosen by customers, removing the conflict of interest at the heart of traditional insurance.
Since launching in 2018, Naked has exceeded its growth targets every year and has built a loyal customer base. The insurtech will use the funding to continue investing in technology that puts customers in control, grow its team, and expand into new markets.
Adamou Labara, IFC Country Manager for South Africa, said that “IFC’s investment in Naked will help increase the penetration of tech-driven insurance in the country and contribute to job creation and economic growth.” Ingo Schulz, Vice President at DEG InsurTech Global Markets, added that “Naked is well positioned to drive digital transformation and inclusion in the South African insurance industry because of its unique technology and innovative business model.”
The Series B funding round signals strong investor confidence in Naked’s management, technology, and positioning, as well as in the significant opportunity to use AI and digital experiences to grow Africa’s insurance market in the years ahead.
